Malaysian traders are purportedly hoping for growth as consumers will be more willing to spend more now the goods and services tax (GST) has been scrapped.
With discounts for the Hari Raya celebrations, sales are expected to rise from car showrooms to supermarkets.
The Domestic Trade, Consumerism and Cooperatives Ministry director-general Roslan Mahyuddin said the 6-per-cent GST was being “zerorised” from Friday.
No GST is being charged for goods and services.
“We know those wanting to purchase big-ticket items such as TVs or refrigerators have been surveying the prices for the last few weeks so that they can make the purchase after GST has been zero-rated.
“I believe now that prices are down, people will feel encouraged to spend,” Roslan said in Putrajaya.
With a new sales and services tax to be imposed only from September 1, Malaysians are in a “tax holiday”.
But essential items, like rice, cooking oil, infant formula and fresh produce, did not attract GST and would remain unchanged in price, he said.
Roslan added that firms had been given a month to replace price tags on produces to reflect the removal of the 6-per-cent tax with retailers saying thousands of products needed to be physically re-tagged.
“We don’t want business premises to prolong this process because we want to make it easy for consumers. In the meantime, they should display general information on which goods carry old and new prices.
“If the price tag has not been changed, traders must see to it that GST is deducted at the cash register. This must be reflected in the receipt,” he said.
Meanwhile, Singapore and Malaysia have affirmed their warm and long-standing military relations, as their defence ministers met today (Sunday).
Singapore’s defence chief Ng Eng Hen and his new Malaysian counterpart Mohamad Sabu met at the 17th Shangri-La Dialogue (SLD) in the city-state, in their first official meeting.
The pair praised a recent combined air force exercise.
“In addition, Dr Ng and Mr Mohamad affirmed both countries’ cooperation in various regional multilateral platforms, such as the Asean Defence Ministers’ Meeting and the ADMM-Plus and the Five Power Defence Arrangements. They also discussed regional challenges such as the situation in the Rakhine State,” Singapore ministry said.
Malaysia has been outspoken in its criticism of its Asean partner, Myanmar, over the treatment of the Rohingya Muslim community along the Bangladeshi border.
Malaysians, like most nations, enjoy shopping. Picture credit: Wikimedia