PETALING JAYA: Mydin Mohamed Holdings Bhd will absorb the cost of the Goods and Services Tax (GST) of RM15mil from the estimated RM300mil monthly profits of its hypermarket and supermarket outlets.Managing director Datuk Ameer Ali Mydin said Mydin would recover a portion of the GST cost from its suppliers and from the stocks that are refundable under the existing Sales and Service Tax (SST).
The GST will replace the SST from tomorrow.
"We have discussed with 3,000 of Mydin's suppliers and 1,500 of them have agreed to absorb the GST cost.
"The percentage of cost to be absorbed by them is yet to be determined. But, it will likely be between two to four per cent of the six per cent GST. A majority of the suppliers are locals," he said.
He told reporters this after a visit by Deputy Finance Minister Datuk Ahmad Maslan to the Mydin Subang Jaya outlet today.
He also said local suppliers were cooperating well in helping Mydin maintain the price of goods.
Ameer said the government should pressure companies to cooperate in helping the people face the GST implementation, as well as the rising cost of living.
He said the price of goods was also affected by the prices of raw materials.
"Goods are influenced by commodity prices and as an example, cocoa prices have dropped by five per cent. That is why prices of cocoa-based food products should not go up," he added.
Meanwhile, Ahmad said the Finance Ministry together with the Customs Department and Ministry of Domestic Trade, Cooperative and Consumerism, will continue to monitor the implementation of the GST.
"Starting tomorrow, 13,000 customs officers will pay visit business premises," he added. -Bernama