KUALA LUMPUR – June 1, 2018: While it may be tempting for many to go on a shopping spree now that the country is free from the Good and Services Tax, the Federation of Malaysian Consumers Associations (Fomca) advises them not to do so.
Instead it is important to shop moderately because if people overdo it, this would give unscrupulous traders a reason to hike prices.
The much maligned GST is effectively abolished from today by the newly-elected Pakatan Harapan and will be replaced by the old Sales and Services Tax.
“Overbuying for the sake of stockpiling would lead to increase in demand and when demand increases, traders will have a valid reason to increase prices,” said Fomca deputy president Mohd. Yusof Abdul Rahman.
He also pointed out that consumers should not be alarmed if the prices of certain essential goods such as butter, chicken, flour and rice do not decrease as expected by some.
“Some of these goods were already not taxed before the GST was zero-rated and if their prices increase, that is likely due to Hari Raya.
“However, consumers can reap the benefit of buying goods that would be a tad expensive, such as cars at a lower price from now until the government reintroduces the SST (from September),” said Yusof.