GST-exempt list to result in CPI rising 1%, not 1.8%

Subromaniam: 'The increase in CPI is mainly for products commonly consumed by the high-income group... The lower-income groups will suffer little impact as most of their income is spent on basic food and household items.'

PETALING JAYA: The Consumer Price Index (CPI) is expected to be lower next year due to the expanded zero-rate and exempt list under the goods and services tax (GST), said Customs Department GST director Datuk Subromaniam Tholasy.

He said that the Government had initially estimated the CPI to go up by 1.8%, as announced by Prime Minister Datuk Seri Najib Tun Razak when tabling Budget 2014 last year.