KUALA LUMPUR – June 20, 2017: The Federation of Malaysian Consumers Association (Fomca) wants the Royal Malaysian Customs Department to be mindful of consumers’ feedback before subjecting basic food items to the Goods and Services Tax (GST).
This is to avoid the department from taxing food items that are consumed daily by the people.
“We noted that the department has just cancelled a gazetted order on some 60 food items to be levied the GST ,” said Fomca deputy president Mohd. Yusof Abdul Rahman.
“The items like rice vermicelli, coffee and fruits and vegetables are consumed everyday. If they decide to charge the GST the cost of living will surely increase,” remarked Yusof in response to the issue regarding the decision that was gazetted on June 6 that would have been enforced on July 1.
Among the items listed were avocados, cherries, coconut oil and seafood.
When the report on the gazette was confirmed, it caused a stir in cyberspace, with netizens labelling the authorities as inconsiderate now that Hari Raya is approaching.
However, the department withdrew the gazetted following consultations with the Finance Ministry yesterday.
Yusof said the authorities should be more careful and not issue conflicting statements that can cause confusion.
“This (confirmation and then withdrawal of order) should not have happened.”