DESPITE the promise of cheaper goods with the re-imposed sales and service tax (SST), consumers are still worried about the impact, as businesses start implementing the tax.

With SST in force since Saturday, they said they have yet to notice the difference in the prices of groceries compared with the goods and services tax (GST), which the SST replaces.

However, it seems more apparent when eating at certain restaurants, as Subang Jaya resident Khairi Zamri found.

The 50-year-old said prices have not gone down since SST was implemented at the Indian-Muslim restaurant in Subang Jaya where he is a regular.

His meal of rice and fish costs “RM2 to RM3 more” than usual.

“It is a burden to the people. They should have just do away with the taxes,” he told The Malaysian Insight.

Other consumers are concerned that SST will be a burden when buying household items and food, even at restaurants not subjected to the tax.

A consumer, who gave his name as Fazlan, said the tax should not be implemented on food as it would burden low-income earners. 

“It will be a slight burden to some. If we eat and buy items that have 6% tax, some would feel the pinch,” he told The Malaysian Insight, referring to the rate for services.

Fazlan was dining at a popular fast-food chain with his friend but he said he did not notice any price difference on the meal.

“But I think there will be a long-term effect. Because it’s still early days and I have not gone groceries shopping yet.”

The single-stage tax of 5% and 10% for sales and 6% for services replaces the multi-stage 6% under the GST.

There was confusion over the list of taxable items and services, with Finance Minister Lim Guan Eng saying on Saturday several food items that should not be subjected to SST yet were on the current list due to their grouping.

Yesterday, he acknowledged some oversights, saying the SST list would be “dynamic” as the government takes a “soft” approach in implementation.

What is clear, however, is that the service tax is only applicable to restaurants that recorded an annual revenue exceeding RM1.5 million.

Khairi said he also worried about the lower-income groups if Pakatan Harapan government eventually reduces and discontinues the 1Malaysia People’s Aid (BR1M), as announced by Prime Minister Dr Mahathir Mohamad.

“Now there is SST and we might not even get BR1M any more if it is discontinued. It will put a strain on the lives of low-income earners like me,” he said. 

Other consumers like K.J. Wong, 57, said he saw the need for the SST in order for the government to earn revenue, but cautioned that it must be accompanied by strong enforcement against manipulation and profiteering by retailers.

“You need to have some kind of tax, if not how can the government function?” he said when met at a supermarket in Subang Jaya. 

“I think they (retailers) are the one who should be more genuine. They have to be sincere. 

“And there should be a strong enforcement by the government to see the implementation is consistent,” he said. 

Another consumer who only wanted to be identified as Zaf, 26, said the price of goods should decrease with SST but he had yet to see that happen, as it was still early days in the implementation.

Retailers also have to ensure they do not take advantage of the tax and impose additional charges, he said.

“I do not feel the effect of SST yet for now but it all depends on the retailers and sellers if they would manipulate the price.” – September 4, 2018.