Prices of goods dropped after GST scrapped, says minister 

Kamles Kumar Kamles Kumar Updated 7 years ago · Published on 31 Oct 2018 9:39PM · 2 Comments

Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail says the inflation rate was much higher when the GST was in effect in 2016 to 2017. – The Malaysian Insight file pic, October 31, 2018.

GOODS cost less now that the goods and services tax has been zero-rated, said the Domestic Trade and Consumer Affairs Ministry.

Minister Saifuddin Nasution Ismail said of the 417 items that were exempt from the new sales and services tax, the prices of 220 items (52.76%) were reduced, 111 items (26.62%) increased, and nine items (2.16%) unchanged. 

For items that were taxed 5% SST, he said,  the prices of 36 items (8.63%) were reduced and only three items (0.72%) inflated. 

As for goods that were taxed 10% SST, he said the prices of 35 items (8.39%) were reduced and only one item (0.24%) was increased. The prices of two items (0.48%) remained the same. 

The Kulim Bandar Baharu MP said more items were exempted from SST than from GST. 

“SST is imposed on the item producers. The number of items and services that have not been slapped with SST is also a lot more with 5,443 items being excluded compared to the 545 items exempted during the GST implementation,” Saifuddin said in the Dewan Rakyat while debating the 11th Malaysia Plan. 

Meanwhile, Saifuddin said the inflation rate was much higher when the GST was in effect in 2016 to 2017.  

“According to a World Bank report, the mean inflation rate during GST was higher than before GST, which was 2.0%,” he said.

The inflation rate in January to May dropped to 1.7% before reducing to below 1% in June to August because GST was zero-rated, he said. 

And even after the SST came into effect in September, the inflation rate the same month was only  0.3%, said Saifuddin. – October 31, 2018.

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Comments

  • Beats me!! Why is the Min ister keep on saying prices of items are going down but in actual the basic neccessities of daily consumption are not see ing that at all. Prices of meat , poultry and vegetables are not seeing any changes that can be easily recall. Even rice price are not going downn and eateries prices of food sold are infact increasing or remained as it was in GST. Petrol prices are just stable to ensure that rakyat are not stirred up in rage but never did the retail petrol price goes down. Toll gates are still there and the same while salaries are still the same and now more taxation will be inplace to build up the coffers. What the heck is going on. If Najib who have been the cause of the concerns and if he is hung by tomorrow nothing will still change except PH do not easily have him as an excuse anymore in their failure to administer the country.

    Posted 7 years ago by Lee Lee · Reply

  • Nasution is another useless Malay Minister like Azizah, Mazlee, Jais and so on. Good for nothing. Like Najib, he is sleeping in his job. Price going down, my ass.

    Posted 7 years ago by Jackal Way · Reply