Prices of goods remain unchanged on first day of SST implementation

KUALA LUMPUR, Sept 1 ― A bit of good news on the first day of reimplementation of Sales and Service Tax (SST) today as there is no increase of prices of goods, particularly the essential and basic food items.

It is still too early to see the effects of SST on the prices of goods as majority of traders are still using their existing stock obtained during the tax holiday (zero-rated Goods and Services Tax) since June 1.

Undoubtedly the consumers hoped the situation to last as SST should have minimal impact on their everyday life and they also urged the authorities to monitor the traders.

In Kedah, a check by Bernama at a popular nasi kandar restaurant in Jitra found there was no increase in prices of food and beverage.

One of the restaurant employees said if there was an increase in prices of food and beverage they would notify the customers in advance.

“At the moment all prices remain unchanged as our raw materials are bought at wholesale prices before the implementation of SST. If there is an increase (of prices), we will inform the customers who come to the restaurant,” he said.

Another check at the Pasar Besar Jitra also found there was no hike in prices of raw materials.

Effective today, the government reimplemented SST at 10 per cent for sales tax and six per cent service tax, replacing GST that has been repealed.

On August 20, the Dewan Rakyat passed the Sales Tax Bill 2018 and Service Tax Bill 2018.

Previously, the GST came into force on April 1, 2015, at a rate of six per cent, introduced by the previous government to replace SST.

In Pahang, Bernama check at a food court in Kuantan found that the prices of food and beverage sold were still maintained, and the customers hoped that it would be sustained in the future.

For private sector employee Mahidi Ahmad, 49, he was delighted to see the prices of goods at a retail outlet in Kuantan were still maintained at the same prices today.

“Actually, I am worried if there will be difference in prices at the end of this month to buy daily essentials… if there is a significant difference in the amount spent as I usually buy things in small quantity, so I will not notice the changes much,” he said.

In Negri Sembilan, a check also found no price changes was recorded.

Consumer Dewi Jidin, 58, said the price offered was still maintained despite the reimplementation of SST today.

“Prices are still the same, for instance, I bought rice at RM13.90 for five kilos pack, similar to what I have paid previously. I guess the reimplementation of the SST is still new, so we will not see any price increase yet,” she said.

In Johor, a check at bakery chain in Johor Baru found there was an increase in prices of cookies, though the price of cakes and bread were still maintained due to the SST exemption.

“The price of a jar of Pineapple Cookies weighing 290 grams is priced at RM23.80 today compared to RM22.50 before SST, while 10-piece packet of Nougat Biscuit sold at RM14.20 today compared to RM13.50 previously,” said shop employee Nurul Shamierah Nor Iskandar Shah, 23.

Meanwhile, a worker of a nearby Indian restaurant who declined to reveal his name said the prices of menu at the restaurant were still maintained as the shop did not impose service tax.

He said a plate of briyani chicken was priced at RM14.90, naan bread at RM3.90 and a glass of teh tarik at RM2.40.

In Perak, several electrical stores in Teluk Intan have started the process of converting from GST to SST by displaying new prices for electrical goods, which show an increase in prices.

Electrical items are included in the list of goods subject to SST of up to 10 per cent.

In Ipoh, Bernama checks also found that popular hotels in the city have started implementing six per cent of service tax effective today.

A hotel was reported to have started charging the service tax at 12 midnight and thus far, no complaints from customers.

Meanwhile, checks at supermarkets and retail outlets in Lumut found no hike in prices and several of them were still offering discounted prices for some items.

Customer Ramlah Abu Kassim, 68, said she noticed that the prices of the goods were still maintained and believed that the reimplementation of SST would not cause a dramatic increase in prices compared to the GST.

“I did my shopping last Thursday and today I noticed that the prices are still maintained,” she said.

In Perlis, checks carried out around Kangar town found only fast food restaurant chains had imposed six per cent service tax on every purchase at their premises.

For majority of restaurants and supermarkets here, the prices of goods and services were still maintained.

An employee at a pharmaceutical company chain who declined to reveal his name said that the company had yet to receive instructions on new prices for products, but they have been informed by the management that there would be price changes following the SST reimplementation.

“I do not know whether the price will go up or down. Today is the first day of SST reimplementation and thus far the prices remain unchanged but I think prices will change in the next two or three days,” he said.

In Melaka, prices of essentials, food and beverage were still maintained.

A restaurant at the Melaka International Trade Centre yesterday sold chicken fried noodles at RM7.50 while the price for a glass of ice tea was at RM1.60, and a check today found the prices were still maintained.

A supermarket in Ayer Keroh sold food items such as chicken, fish and vegetables at old prices and according to its supervisor who only wished to be known as Sandra, the reimplementation of SST was still on its first day and the effect had yet to be felt as the stock in the supermarket were bought at zero-rated GST.

A similar situation in Selangor when the average price of goods including food and beverage were still maintained.

A check at a wholesale supermarket in Shah Alam found a bottle of 1.5 litres of bicarbonate drink was priced at RM2.90, similar to yesterday (before SST).

In Kelantan, several consumers met during Bernama checks in Kota Bharu said that the prices of goods purchased today did not show any significant difference despite the SST reimplementation.

Meanwhile, a salesgirl at a supermarket here who wanted to be known as Nur Atikah said that they have yet to receive instructions from the management to place the new price tags following the reimplementation of the SST, hence all goods were currently sold at the old prices.

In Kuala Lumpur, consumers were seen to take advantage of long weekend break to carry out review and price comparison following the reimplementation of SST.

Private sector worker Nurul Idayu Menhad, 31, said her regular shop in Jalan Ipoh still maintained the prices at zero-rated GST.

“The price of goods are still maintained and thus far, in my observation during shopping in the morning, I didn’t notice any hike in prices,” she said.

For army personnel Saparis Safain, 37, he decided to go out to check prices of goods and services to avoid confusion.

“Today I went to the car service centre and when I paid the bill ... I noticed that there was SST service charge included,” he said.

In Penang, checks at several nasi kandar restaurants in Seberang Jaya found that they had imposed the six per cent of SST on food and beverage sold at their premises.

A visit to the Nasi Kandar Subaidah Restaurant found that the same menu was priced at RM21 yesterday, but today’s receipt showed there was an additional RM1.26 for SST.

Meanwhile, a supermarket here also found to have maintained the old prices for their goods and its marketing division senior manager Leong Hau Soon said that no price adjustments were made just yet and the prices of items were likely to change if there was an increase of cost from the suppliers in the near future.

In Sabah, checks at major supermarkets, retail outlets and restaurants in Kota Kinabalu found that the prices of their goods and services were still maintained despite the reimplementation of the SST.

Similar situation in Tawau as traders have yet to introduce SST in their prices of goods and services as their current stock were bought during zero-rated GST.

In Sarawak, random checks in the Kuching city found no increase in the prices of goods at stalls and retail outlets.

Domestic Trade and Consumer Affairs Deputy Minister Chong Chieng Jen said only 38 per cent of goods were listed under SST compared to 60 per cent under GST.

In a press conference after the Walkabout Price Survey in Kuching, Chong reminded traders not to take advantage to increase the prices of goods indiscriminately.

“Any traders found to increase the price of goods indiscriminately will be charged under the Price Control and Anti-Profiteering Act,” he said.

In Terengganu, a fish cracker entrepreneur in Kuala Berang has taken a bold move by reducing the price of the company’s products in line with SST reimplementation beginning today.

Syarikat Sempurna A-Nad Marketing owner Nor Hasnaa Kamilah Mohd Dalim, 28, told Bernama today that previously 38 grams of fish cracker was priced at RM2 but starting today, she reduced it to RM1.50 only.

“I hope with the price drop, customers, especially domestic consumers, will buy local products that are guaranteed for its quality and cleanliness,” she said.

She said the factory has received MESTI certification from the Health Ministry and currently in the process of obtaining halal certification from the Malaysian Islamic Development Department (Jakim).

Meanwhile, checks around Kuala Terengganu city found that food prices in the restaurants were still maintained despite the reimplementation of SST today.

A private sector worker who declined to reveal his name said he still enjoyed his favourite dishes, namely, roti canai telur at RM2, milo ice RM2.50 and fruit juice at RM3 per glass, as the prices were still maintained despite SST reimplementation today. — BernamaIn Johor, a check at bakery chain in Johor Baru found there was an increase in prices of cookies, though the price of cakes and bread were still maintained due to the SST exemption.