Mydin insists prices not up, GST in receipts legally required after photos spread

Earlier today, photos of Mydin receipts were circulated on social media, with some Internet users accusing the company of passing on the six per cent GST to shoppers. — Picture by Azinuddin Ghazali
Earlier today, photos of Mydin receipts were circulated on social media, with some Internet users accusing the company of passing on the six per cent GST to shoppers. — Picture by Azinuddin Ghazali

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KUALA LUMPUR, April 1 — Local hypermarket chain Mydin has refuted allegations that it has reneged on its promise to absorb the Goods and Services Tax (GST) in force from today, saying that it is legally required to display the tax imposed in its receipts.

Earlier today, photos of Mydin receipts were circulated on social media, with some Internet users accusing the company of passing on the six per cent GST to shoppers.

Datuk Wira Ameer Ali Mydin acknowledged the “confusion” arising from Mydin receipts showing the amount of GST imposed, but maintained the company has not increased the prices of its goods.

“Why it shows in the receipt is because at the end of the day, it’s required by law to show six per cent on receipt,” the managing director of Mydin Mohamed Holdings Berhad told Malay Mail Online when contacted.

In a photo sent through the WhatsApp messaging app, he forwarded two receipts with identical goods being bought at Mydin on March 31 and April 1, showing that the total amount paid by customers on both days had not changed.

A comparison of Mydin receipts before and after the Goods and Services Tax kicked in on April 1, 2015. — Picture courtesy of Datuk Wira Ameer Ali Mydin.
A comparison of Mydin receipts before and after the Goods and Services Tax kicked in on April 1, 2015. — Picture courtesy of Datuk Wira Ameer Ali Mydin.

The only difference is that the April 1 receipt displays the amount of the GST — which replaces the previous system of Sales and Services Tax (SST) of between five and 10 per cent.

Ameer Ali reiterated that Mydin will not pass on the six per cent GST to shoppers for the month of April and pointed to the company’s “Harga Tak Naik” campaign to maintain price levels.

Mydin will bear the GST this month by foregoing some of its profits and with rebates from its suppliers, as well as through refunds of the SST from the government for the existing pre-GST stock the company has, he said.

“You are not paying more… So who’s paying the six per cent? We are paying the six per cent,” he said, comparing Mydin with other competitors that he said were passing on the GST to customers.

“We are a big player in the market, we will not dream of cheating customers,” he said in response to complaints that Mydin was allegedly lying about its pledge to ensure price levels in its stores do not go up.

When asked if Mydin would extend its campaign to absorb the GST beyond April, Ameer Ali said it would depend on various factors such as the company’s suppliers and the price level of goods.

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