Najib too quick to shift blame on traders for price increase - but really, the fault should lie with the PM and the BN government.
On paper, there really should have been no price increase - in fact a drop in prices considering the fact that the old taxes that the GST replaced is at the same rate or lesser.
"We have abolished SST of 10, five per cent, some people do not know about SST before, the problem (abolition) is, it should have reduced prices
So, why has the prices risen? Well, let us look at the factories and wholesalers/suppliers - have they reduced the prices of the products they provide the traders? Has it been reduced by 6% or more(depending on the earlier applicable taxes)? Well, if they are selling still at the old price - then should we not be taking action against them?
Second - do not forget that by this BN Government policy - business operating cost of the traders have increased. How?
Well, you needed to get the relevant machines and programs, and these cost between RM10,000 - RM15,000
Well, now NEW staff was needed to input data in this new hardware/software, make the necessary calculation, prepare GST submissions > the government totally failed to appreciate that many of the old 'traders' were computer illiterate, and did not have the capacity to be able to handle the GST and matters related. So, for a new staff(2 maybe if the operation hours were more than 8 hours) - additional RM2,000 per staff (RM4,000 if 2) monthly or will it be more?
Third - a failure to realize that many traders never paid the suppliers the full some for the products when it arrived. There were various forms of business arrangement - most common is that payment only made after product sold. But the GST fails to appreciate this - requiring the trader to pay the 6% GST when the product arrives from the suppliers, and before it has been sold >> These traders will thus have to pay GST even before they manage to sell a product >> and now for items that arrive at the shop costing RM10,000, they have to already pay GST - RM600. This is money paid out before the items are sold. Yes - you can reclaim money paid if goods not sold later on...
End result, is that the cost of doing business for the trader, retailer have all increased - all because of GST. Many of these businesses are really small businesses ... and to compensate all this increases in cost of doing businesses, it comes as no surprise that customers end up paying...
Now, the government is going after those that have increased prices...of 'roti telur' - should not the retailer/businesses have a right to sell roti telur at whatever price they want? Try having a roti telur at some hotel or even some 'high-class restaurant' - guess what the price is so high. So, why not take action against them too.
Then let us look at how costs of houses are pushed up so unreasonably in Malaysia - no price control? No action?
GST - well, all the government should have done was to collect it in the same was it was doing the old sales and services taxes. The whole system of forcing the end retailer/trader to calculate and pay it is where the BN government made a big fumble - and caused the people great suffering. Points of production was the best place to collect these taxes - and that value would have gone into the prices.
So why did this BN government do this?
So, who profited? Well, in my opinion, it would be the people who were selling the hardware(computer,POS systems) and certainly the computer program? Was there copyright - requiring people to pay annually to be able to continue using the program?
It is sad, that with this government's price control efforts - focus is on the price of sale to consumer - the retailers,'traders', etc. Price control, must in fact start at the factories(or other points of origin), the middle-man, the wholesalers, the suppliers,...if not unjustly, the only business person that suffers is the person that finally sells to the ordinary consumer.
What if the government discontinues GST... or even go back to the old system where GST is collected at the point of origin of the product, well will the government buy back the GST machines and programs?
The whole idea of the GST and the manner in which it was implemented makes everyone suffer, and fault should lie with Najib, being the Prime Minister, and this BN government. Najib should not be blaming traders - or going after 'roti telur' sellers.
Why is the government not going after the BIG businesses - well Gardenia Bran & WheatGerm bread was selling at RM2.40, but after GST it is sold at RM2.55? [And, this price increase is not done by the retailer, I believe]
Pos Malaysia is charging GST for service charge...?
Traders exploit GST and burden peoplePosted on 23 May 2015 - 04:48pm
Last updated on 23 May 2015 - 06:02pmGOPENG: The action of some traders who exploited the Goods and Services Tax (GST) has burdened the people when the tax system was implemented last April 1, said Prime Minister Datuk Seri Najib Abdul Razak.He said the traders should have reduced the prices after the Sales and Services Tax (SST) was abolished but they did not do so and instead took the opportunity to raise prices by six per cent using the GST as an excuse."The GST issue is caused by traders, these traders are evil, they are not responsible, not the government, we have other policies."When traders exploit the situation, the people blame the government and prime minister."Everyone want to step on my head even though my heart's intention is to strengthen the country's finance and people's welfare," he said when speaking in front of over 20,000 people during a working visit to the Gopeng Rural Transformation Centre (RTC) here today."We have abolished SST of 10, five per cent, some people do not know about SST before, the problem (abolition) is, it should have reduced prices but another six per cent is added, this is the cause."If want to be angry, get angry with the traders, they must be blamed because they do not have compassion to think about the people's interest," he said.The prime minidtyer said through the GST system, the country's revenue will increase and many aid could be channeled to the people, including from the aspects of infrastructure and people's needs."If BR1M ( 1Malaysia People's Aid) needs to be increased, I can do so, if roads need to be increased, I can do so, if government employees want to have additional bonus and pension, it can be considered," he said, adding that the government could do these on condition there were financial sources.Hence, Najib asked the relevant authorities to intensify enforcement and act more firmly to take errant traders to court."Sue them (traders), consumers please inform us their offences so that we can take action," he said.Najib said the government had expected such kind of problems to occur when the GST was implemented in the country.As such, he said the government took steps to raise the BR1M aid from RM650 to RM950.He said GST related issues were expected to be settled within a period of one year."I will table to the people every ringgit of the country's addidtional revenue related to GDT for the public's knowledge.The prime minister also denied allegations that the BR1M disbursement had made the recipients more lazy but said it helped to ease the burden of the low income group."The disbursement is not to make people lazy or addicted but if they receive BR1M, they can buy rice and their children's milk and school uniform.\"The people need assistance and with this RM950, many things can be done if spend wisely. There is nothing wrong to give BR1M because developed countries also have such a system," he said.Najib said the BR1M disbursement was aimed at increasing the consumers' power, which in turn profited the traders and caused the local economy to grow.He said the government abolished the oil subsidy, namely bulk subisdy that was more favourable to the rich and the BR1M disbursement was a targeted subsidy that gave attention to the poor and needy."The oposition also get (BR1M), sometimes they are the first to ask, but never mind, support or not, that is another question because the government is responsible to help the people who need assistance," he said. – Bernama - The Sun Daily, 23/5/2015
Restaurant with 'roti canai telur' at RM2.50 raided
State ministry enforcement deputy head Chin Ching Chung said the inspection was carried out at 10.40am after the department received a consumer's complaint that the price of 'roti canai telur' before the implementation of the Goods and Services Tax (GST) was RM1.80.
"The restaurant operator is given three days to submit relevant documents and reasons for raising the price before enforcement action is taken," he said when contacted.
He said if the operator failed to give reasonable explanation for the price rise within the stipulated period, action could be taken under Section 21 of the Price Control and Anti-Profiteering Act 2011.
"If the operator concerned is found to make an excessive profit margin, he can be prosecuted under Section 14 of the same act," he added.
Chin said further investigation revealed that the price of 'roti canai telur' at the restaurant had been raised several times before April from RM1.80 to RM2.20 and the latest to RM2.50 after the GST.
- Bernama - Malaysiakini, 23/5/2015