KUALA LUMPUR, June 2 — The Domestic Trade, Cooperatives and Consumerism Ministry has given the La Bodega bar-and-restaurant chain five days to explain a consumer complaint that it raised prices following the zero-rating of the Goods and Services Tax (GST).
The ministry said an inspection team visited La Bodega’s outlet in Bangsar Shopping Centre yesterday to investigate the matter that caused controversy online.
Inspectors determined that the outlet has since updated its menu by manually subtracting 6 per cent from prices listed to approximate a zero-rated GST, as the system update was still pending at the headquarter level.
They also discovered that the restaurant was still using menus incorporating the GST, and advised the outlet to discontinue the usage.
"A S21 notice was issued to La Bodega to furnish relevant documents to the ministry’s office within five days along with an explanation for the price discrepancy contained in the complaint.
"A copy of the menu and receipt were also confiscated for further review and investigation,” the ministry said in a statement.
Yesterday, pictures of two receipts purportedly from the offending La Bodega outlet was shared online, one from May 25 when the GST had still been levied and another from yesterday when the consumption tax was zero rated.
Both receipts were for a "Big Breakfast”; the older one amounted to RM51.70 with a 6 per cent GST and 10 per cent service charge while the newer receipt showed the customer was charged RM58.30 without the GST but including the service fee.
La Bodega later said the discrepancy was due to "database errors” in its system update to comply with the zero rating of the GST.
The Pakatan Harapan government announced last month that it was zero rating the GST in accordance with its election manifesto.
Putrajaya said it was foregoing RM17 billion in revenue between now and the resumption of the Sales and Service Tax (SST) on September 1.
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