THE government should take action against retailers who are profiteering after the goods and services tax (GST) is zero-rated, said Paul Selvaraj.

The Federation of Malaysian Consumers Associations (Fomca) chief executive officer said consumers should expect to see prices immediately reduced with the end of the GST.

“If retailers don’t bring down the prices, it means they are profiteering and making money out of the tax.

“We hope that the Domestic Trade, Consumers and Cooperative Ministry will look at companies where the GST is removed; there should be a reduction in prices,” he said after meeting with the Council of Eminent Persons (CEP)at Ilham Centre in Kuala Lumpur, today. 

Selvaraj said while the GST was assessed at every point, the yet-to-be implemented sales and services (SST) was assessed at only one point.

“The SST has not been implemented so we have to look at what the consumers are going to be charged. We have to look at the structure of SST.

Selvaraj said he and CEP discussed ways to reduce the cost of living and increase the income of Malaysians at the meeting.

“We are looking at measures to ensure that they get a better quality of life.

“When we look at the cost of living we need to look at many things such as bringing the cost of food prices down, the price of housing which is expensive.”

Selvaraj said healthcare was another major component as far as consumers were concerned.

He said the government needed to invest in public healthcare to ensure accessibility and better service.

“The government will have to look at the pricing and see how the consumers can benefit because private healthcare is too expensive.

“Healthcare cannot be determine by the market and by profits.”

Selvaraj said fuel subsidies had an impact on every sector and if they helped to reduce the cost of living, the government should consider them. – June 5, 2018.