KK Chamber: Traders not taking advantage of GST

Prime Minister Najib was not right to advise the people to get angry with traders over the GST issue.

KOTA KINABALU: The Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI) begs to differ with Prime Minister Najib Abdul Razak that the people should get angry with traders, not the government, in the wake of rising prices following the implementation of the Goods and Services Tax (GST) since April 1.

“Most traders are law-abiding citizens who don’t take advantage of the GST to raise prices,” assured KKCCCI President Michael Lui. “We cannot entirely concur with the Prime Minister.”

“It’s not proper for him to advise the people to get angry with traders for rising prices following the GST implementation.”

He was commenting on Najib’s statement that traders had taken the opportunity to raise prices by at least 6 per cent following the imposition of the 6 per cent tax under GST. “There may be some traders who may have taken advantage of GST to profiteer at the expense of consumers,” he hastened to add in qualifying his statement. “The authorities concerned should investigate complaints against errant traders.”

“Most traders are exercising self-discipline and were ethical to ensure that the market remains with them even after GST.”

Lui’s comments also come in the wake of an announcement by the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) that five “Ops Catut” cases will be forwarded to the Sabah Attorney-General’s Chambers.

Revisiting his main argument that most traders were law-abiding citizens, Lui claimed that there were a number of other factors behind rising prices in the market which is struggling to remain efficient and competitive. “We must keep in mind that the ringgit has declined in value, shipping costs are rising, electricity and water tariffs have gone up.”

“All these factors should be taken into account since they will drive up the cost of doing business and as a result prices will be higher in the market.”

He expressed the hope that traders will not continue to be blamed by blanket accusations that they are taking advantage of the GST to raise prices, at the expense of the people, in order to profiteer. “Traders too have a responsibility to safeguard the economy and the country and ensure the people’s welfare,” said Lui. “Exploiting the GST to raise prices is a short-term measure and would not ensure that the market in the long run will accommodate errant behaviour.”

KPDNKK Sabah Director Severinus Tukah, who confirmed that investigation papers have been opened on three cases, added that the files would be sent to the Sabah AG’s Chambers next week.

“Two cases are related to not answering a notice from the authorities concerned within three days,” he admitted. ‘One case would be brought to Court under the Price Control and Anti-Profiteering Act 2011.”

“We may open investigation papers on another two cases.”

Overall, until May 22, he said that 90 notices were issued and involves 508 cases. “The goods confiscated come to a few millions.”