Friday 29 Mar 2024
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PETALING JAYA (Mar 23): Domestic Trade, Cooperatives and Consumerism Ministry has urged traders who derive cost savings from the Goods and Services Tax (GST) to pass them on to consumers.

"Prices should be changed accordingly, as the 10% sales tax will be eliminated once the 6% GST is implemented," the ministry's senior principal assistant director Guna Selan Marian told reporters, after Deloitte's Price Control and Anti-Profiteering Seminar today.

Depending on different businesses, he said the pricing can be adjusted upwards or downwards.

Some businesses will benefit from the GST, as the 10% sales and service tax will be abolished come April 1.

Under the Price Control and Anti-profiteering Act 2011 (PCAPA), Guna said there could be changes in the pricing of the products with the change in the tax base, but businesses have to maintain their net profit margin for 18 months until June 30, 2016.

He said businesses have to provide evidence and necessary documentation to support any changes in their pricing and that they are still maintaining their net profit margin, should there be a price increase.

Guna also said the ministry has received complaints that some businesses have already started to charge GST onto consumers.

He warned businesses not to impose GST now, although they have already changed their system to comply with the GST.

While the ministry does not see any additonal costs to be incurred for businesses to comply with PCAPA, Deloitte Malaysia's country tax leader Yee Wing Peng said additional costs will be incurred, as companies have to set up certain systems and monitor regularly to calculate whether they are violating the act.

He also added the size of the additional costs would defer, depending on the business.

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