PETALING JAYA, March 30 — Businesses must not increase profit margins for the next 15 months following the introduction of the good and services tax (GST), Customs director-general Datuk Seri Khazali Ahmad said today.

Expecting that traders will use the new consumption tax to raise prices opportunistically, Khazali warned that those who flouted the moratorium will be penalised.

“So, for example, if their profit margin was 10 per cent, they cannot increase that for the next 18 months from January this year,” he said after a press conference at the Customs Complex here.

The Customs head said the department’s enforcers will conduct random checks to determine if traders have increased their margins, but did not specify what laws or penalties will be used to ensure compliance.

He also said 1,600 new positions have been created within the Customs Department to cope with the new tax system, with about half of them filled already.

Today, he also launched a book of Frequently Asked Questions about the GST that will be available for download on www.gst.customs.my.

The public may also call 1300-888-500 for clarifications.

“We expect that there will be a lot of questions from the public, so to increase our engagement with the public, we will launch a help desk at the Customs Department headquarters and there will be 10 lines manned by 10 officers 8.30am to 10pm, seven days a week,” he said, adding that the helpdesks will also be available in state Customs offices.

Putrajaya will begin collecting a GST of 6 per cent beginning April 1.

*An earlier version of this story erroneously stated businesses are not allowed to raise their profit margins within 16 months instead of 15. The statement has been since been corrected. Malay Mail Online apologises for the unintended error.