TOO HIGH & STILL RISING: But Ahmad Maslan says prices will 'stabilise' soon

PUTRAJAYA - The Ministry of Finance, in its bid to convince Malaysians that the prices of goods and services will stabilise in the coming months especially with the implementation of the Goods and Services Tax (GST), has drawn up a list to prove that it is heading the right way.

Its deputy minister Datuk Ahmad Maslan said Malaysians can expect reduction in prices in the coming months with traders forced to reduce the prices as demand for their goods and service will decrease.

“Consumers will be more cautious in their spending and more selective when it comes to making purchases as they are aware that some businesses are taking advantage of the GST tax. This could force traders to reduce their prices," he added.

He said Malaysians can expect prices to reduce with businesses claiming their input tax from the Customs Department which they were not able to do so under the previous Sales and Services Tax (SST).

Ahmad Maslan also said enforcement by the government has also proven to be effective, with many unscrupulous traders taken to task.

"Traders will be afraid to commit offences. In fact, the Domestic Trade, Cooperatives and Consumerism minister has also briefed the Cabinet on Monday on businesses that are compounded and taken to court,” he said.

He also pointed out the price reduction would be seen with SST items running out of stock within the next few months.

"There should be no reason for traders to charge the SST from then on,” he told reporters at the MyGov-TECH 2015 seminar at Putrajaya International Convention Centre (PICC), here today.

Ahmad Maslan was responding to criticisms thrown at him concerning the GST, with many disgruntled consumers complaining of errant traders taking advantage on them, and that the implementation did not go smooth.

Earlier in his speech, he said that if the prices are not reduced, then it is not because of the GST but the traders themselves.

The two-day seminar, themed “Enhancing Efficiency through ICT Innovation”, is an initiative undertaken by the Finance Ministry to improve the understanding of government agencies in managing and the using of hardware and software. - Sundaily