He said the domestic trade and cost of living ministry would play a key role in protecting consumers from unscrupulous parties seeking to exploit the tax changes for profit.

At the same time, the government will ensure that affordable alternatives for essential goods continue to be made available, he said.

“Following last year’s SST revision, along with the changes to electricity and diesel subsidies as well as the water tariff increase, the domestic trade and cost of living ministry closely monitored prices in retail outlets and supermarkets.

“Following the move to expand the scope of the SST, enforcement efforts will be intensified, in addition to the continued offering of affordable goods through the Rahmah Sales and Agro Madani programmes,” he said in an interview with FMT.

Johan was commenting on measures taken by the government to address inflation concerns stemming from profiteering activities following the implementation of the expanded SST scope.

Last week, the finance ministry announced that zero tax rates would remain for essential goods, while a rate of 5% to 10% would be imposed on non-essential items.

The scope of the service tax will also be expanded to cover rental, leasing, construction, financial services, and private healthcare and education services.

However, services directly impacting Malaysians such as public and some private healthcare will continue to be exempted from the service tax.

When the SST was reintroduced in 2018 following the repeal of the goods and services tax, the government launched Op Catut 5.0 to tackle excessive profiteering.

Last year, an operation codenamed Op Kesan was launched to monitor the impact of the SST rate adjustment from 6% to 8%.

Under the Price Control and Anti-Profiteering Act 2011, individuals found guilty of imposing unreasonable profit margins can face fines of up to RM100,000 or RM250,000 for repeat offences, as well as imprisonment.

Companies may be fined up to RM500,000 for first offences and RM1 million for repeat offences.