Businesses warned to lower prices from June 1

Reports by ZAZALI MUSA, MANJIT KAUR, RAHIMY RAHIM and CRYSTAL CHIAM SHIYING 

PETALING JAYA: All registered businesses have been told to lower prices following the Government’s move to zero-rate the Goods and Services Tax (GST) from June 1.

Customs director-general Datuk Seri T. Subromaniam said businesses must follow the ruling by passing down the 6% savings to consumers.

“We urge business operators not to exploit the Government’s intention to lower prices of goods and services for consumers,” he said in a statement.

The Government announced it will remove the unpopular GST and replace it with the sales and service tax (SST).

GST zero-rated supply means the goods and services are not taxed, hence the taxable company does not need to collect any GST on sales.

GST brought in RM44bil in 2017 and the previous administration projected a collection of RM43.8bil in revenue from the GST this year.

Subromaniam said the Govern­ment has yet to announce when the SST will be implemented and the tax will not take effect immediately.

“Therefore, all businesses must lower prices which was previously set at 6% beginning next month,” he said.

The Government, he said, will take strict measures to ensure that the prices of goods and services will be in line with the Price Control and Anti-Profiteering Act 2011.

“Business operators can refer to the questions and answer section regarding the transitional period from 6% to 0% GST at www.customs.gov.my and the department’s portal gst.customs.gov.my,” he said.