KUALA LUMPUR (May 27): Businesses are required to pass on savings from the zero-rating of the goods and services tax (GST) that starts on June 1 to consumers in the form of lower prices, says the Customs Department.
In a statement today, the department's director-general Datuk Seri Subromaniam Tholasy urged all businesses not to exploit the government's wish to lower prices and to pass the tax saving to consumers.
"The government will not implement the sales and services tax (SST) on June 1, 2018, and the actual date of the SST implementation will be announced later. Hence, all businesses are required to implement the lowering of prices of goods and services in accordance to the 6% [GST] that will be zero-rated beginning June 1, 2018," he said.
The government will be taking stern steps to ensure that the prices of goods and services comply with the Price Control and Anti-Profiteering Act 2011, he added.
For further information, businesses can refer to the frequently asked questions in relation to the transitional period from 6% to zero-rated GST that has been uploaded to the Customs website at www.customs.gov.my and the portal gst.customs.gov.my.