Price rises at Food Courts and other places when GST has been abolished: Why?

Pakatan Harapan has won GE 14 but seems to be losing the war against rises in price at food centers and restaurants…

Why are food prices up despite the end of GST?

In Ipoh, anyway.

When it was announced that the GST would be abolished, many of us expected prics to remain unchanged. However, the next morning, a cup of kopi-0 went up by 10 sen in every place I went to except for one place in Bercham.

16 July 2018

One month on, after zero GST: Who are the winners and losers?

KUALA LUMPUR, July 16 — How has the new policy of not collecting the Goods and Services Tax (GST) affected Malaysian businesses and consumers after 30 days?

Here Malay Mail brings you the list of those who benefited the most and those who somehow missed the benefits, based on checks with industry players:

The big winner: Car dealers

Datuk Aishah Ahmad, president of Malaysian Automotive Association, told Malay Mail that the orders received by the association’s members for cars have been “tremendous” after the GST was zero-rated.
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A mixed bag: Retail

But not everyone’s a winner.

Retail Group Malaysia managing director Tan Hai Hsin, whose reports are based on surveys of Malaysia Retailers Association members, said the zero-rated GST did help to improve retail sales but said this depended on the type of businesses.

“For the month of June 2018, increase in sales varied among retailers. Hari Raya festival (also school holiday, World Cup, Father’s Day and Raya bonuses) helped to push sales as well,” he told Malay Mail.

“Some retailers enjoyed 30 per cent increase in business, while others only 10 per cent. Some did not see improvement in sales,” he said, adding that the varied result in improved sales also depended on the additional discounts offered by retailers on top of the shaving off of 6 per cent GST on prices.

Businesses that enjoyed higher sales were those selling high value-added retail goods (such as cars, luxury items, electrical goods, electronics goods, gadgets and furniture) and those offering high value-added services (such as travel, house renovation, medical, beauty and hair care), Tan said.
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Tan said retailers who did not record a major increase in sales are provision shops, sundry shops and mini-markets, while those with no increase in business are small online retailers, hawkers, coffee shops, market stalls and other temporary stalls.

Datuk Seri Garry Chua, president of the Malaysia Retail Chain Association, similarly said the associations have received increased sales depending on the sector, with big-ticket items like cars and electrical goods, where more money can be saved, enjoying a bigger boost in sales.
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Life goes on: Restaurants

C. Krishnan, vice-president of Malaysian Indian Restaurant Owners’ Association, said the zero-rating of GST is not going to make much of a difference in restaurants’ operating costs.

He pointed out that restaurant operators had been absorbing an estimated 10 per cent to 30 per cent of costs in the last three years after GST was introduced, attributing the higher costs to various factors such as pricier imported ingredients due to a weak ringgit, fuel costs and electricity.
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He noted that most of his members’ customers are from the lower-income or mid-income group who regularly visit to catch a simple meal before or after work, saying that they had different price expectations as compared to when they visit other type of eateries.

“If you are going to much bigger restaurants, franchise or fast food, I think most of them don’t care how much the bill comes up, we are ready to pay, even 10 per cent service charge even before GST came. We are already prepared to go and pay that amount.

“Whereas we expect common restaurants to not be burdened by these levies and taxes, so now I think the buying power is slightly increased,” he said.
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Consumers

While the zero-rating of GST may not amount to much savings for small items, Malaysians still get to save a lot with the tax break.

Federation of Malaysian Consumers Associations deputy president Mohd Yusof Abdul Rahman however said the federation had received many unofficial complaints from Malaysian consumers who were disappointed that prices only fell to pre-GST levels and did not drop further.

“However consumers still save a lot because GST is not only imposed on goods, but also on services, and most of the services that we use now don’t have the 6 per cent GST,” he said, having noted that zero GST actually only means that goods prices will be less 6 per cent of the tax and does not necessarily have to be lower.

https://www.malaymail.com/s/1652625/one-month-on-after-zero-gst-who-are-the-winners-and-losers#.W0v954QoZ9k.twitter

15 July 2018

No GST but the price goes up from rm2.00 to rm2.20 for a cincau drink at what was formerly Woolley’s but now Family Food Court in Ipoh Garden, Ipoh

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