Sales up 20% during tax holiday

PETALING JAYA: Since the GST rate was set to zero at the start of this month, businesses have reported an increase in sales as consu­mers take advantage of the tax holiday.

Malaysia-Singapore Coffeeshop Proprietors’ General Association president Ho Su Mong said its 20,000-odd members in Malaysia re­­corded between 10% and 20% in­­crease in patronage.

“There is a psychological effect to it; more people are coming in with higher expenditure power,” he said, adding that it would take time for goods and services to be adjusted to its correct market price.

He said in the long term, the ge­­neral costs of goods would decrease by more than 6% as the Goods and Services Tax had affected different stages of the supply chain.

At the Council of Eminent Per­sons’ meeting with entrepreneurs yesterday, former Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz said she hoped that Malaysians would continue to benefit from the zero-rated GST.

“More people have been saying that there is greater vibrancy (in economy) now and people are starting to spend money.

“We hope the retailers will pass on the benefit to the consumers,” she told reporters.

Malaysian Automotive Associa­tion president Datuk Aishah Ahmad said car industry players were enjoying brisk sales too.

“Most car companies received a lot of bookings and delivery re­­quests before the implementation of the SST (Sales and Service Tax).

“Car distributors are trying their best to fulfil orders received, provided stocks are available and loans are approved by the banks,” she said.

But the zero-rated GST has a relatively smaller effect on other industries.

Sundry Goods Merchants Associa­tion president Hong Chee Meng said that members who sold sundry goods and daily necessities had re­­latively stable sales with or without GST.

“In our industry, our sales won’t be like a ‘yo-yo’. Consumers will still need these daily necessities and businesses don’t make a huge profit margin from groceries.

“It’s not like in the car or property industry where you see a sudden surge or drop in sales,” he said.

On the consumers’ side, however, Malaysian Muslim Consumers’ As­­so­­ciation lead activist Datuk Nadzim Johan said enforcement was key to ensuring consumers would not be exploited.

“It is the norm for businesses to hike prices but not to reduce them,” he said.