CHECKS at 431 wet markets, grocery shops, supermarkets and hypermarkets in Penang showed a 50% price drop for 417 goods following the zero-rating of the goods and services tax.

Of the total goods, 261 were previously exempted from GST, while the remainder was subjected to the 6% tax, said state domestic and international trade, consumer affairs and entrepreneurial development exco Abdul Halim Hussain.

He told the state legislative assembly today these were the findings of state Domestic Trade and Consumer Affairs Ministry officers.

Among the items that have become cheaper at hypermarkets are Chinese cabbages, carrots, brinjals, Omega Plus low-fat milk powder, cooking oil, red grapes and soap.

“Price checks on necessary goods were conducted daily, weekly and monthly during the implementation of GST, as well as after it was zero-rated on June 1,” said Halim during his winding-up speech.

“The checks will be continued when the sales and services tax comes into force on September 1.”

GST, which was implemented by the former Barisan Nasional government in April 2015, has been scrapped by the new Pakatan Harapan administration. The tax was blamed for causing an increase in prices and the cost of living.

Halim said the ministry’s enforcement unit in the state also takes action to ensure businesses and traders abide by the law and do not practise profiteering.

He said the “Catut 4.0” operation involving the ministry, Customs Department and local authorities is targeted at retailers for both goods and services.

“There are 135 ministry enforcement officers conducting checks regularly at markets, grocery stores, supermarkets and hypermarkets to make sure the businesses do not manipulate prices.

“The state government will also reactivate its Consumer Monitoring Squad in every state constituency. The squad will monitor prices, as well as cleanliness, the environment and health-related issues at the community level.”

Halim told reporters that the situation with prices after the zero-rating of GST has been described by Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail.

He said many people have complained about restaurants not decreasing prices.

“This is also caused by fluctuations in the prices of vegetables and seafood. But, there are price drops for other goods, allowing consumers to buy more than before.

“In the past, following the implementation of GST, some things became 30% more expensive, causing consumers to buy less or even stop buying.” – August 9, 2018.