Shoppers bite the GST bullet

Shoppers say they'll just have to adjust to the GST because essentials must still be bought and moaning won't help. – The Malaysian Insider pic by Kamal Ariffin, April 1, 2015.Malaysians bit the bullet as the Goods and Services Tax (GST) kicked off today and kept up their shopping routine, with some saying they have no choice but to adjust to the new tax and its effect on the prices of goods and services.

Acknowledging an increase in their spending, consumers said that sooner or later, they would have to adapt to the broad-range consumption tax instead of moaning about it.

A housewife from Shah Alam, who wished to be known only as Shaza, 42, said despite disliking the idea of GST, she still shopped today because prices of goods had already increased before GST.

She said from her observation, the prices had increased way before the implementation of GST.

"The prices of goods already gone up; even before GST, the prices had increased.

"Everything is pricey now. You can get a lower price for the same product, but it will not be of the same quality; like condensed milk, it’s already more than RM5."

She said she still had to shop for groceries "because I need them", as her daughter pushed a trolley full of groceries like vegetables and milk.

She said the situation made her think of migrating overseas, but added that she did not have many options.

"My children, who study at private universities, already speak about about migrating overseas because of the current situation."

"People who have money can leave, but for those who don't, there is no option except to stay here."

A food vendor trader from Shah Alam, who wanted to be known as Sabri, said he expected to pay an additional minimum of RM150 on his monthly shopping for his business.

Sabri, 67, who peddles 'tauhu bakar' and 'rojak buah', said the increase was due to the fact that GST is levied on tofu, one of the essential items in his business.

"I have calculated that for my business daily expenses, I have to pay RM7 more because of GST. For a month, this will come up to at least RM150-RM180."

He, however, said that despite the increase in his cost, he could not increase the price of his wares, because he had to think about  his customers.

"I can't increase my prices, because I'm a petty trader, I have to keep my customers.

"Yes, there is an increase in cost; tofu is charged with GST, even though fruits aren't," he said, adding that as a result, his profit margin would be smaller.

Sabri was philosophical about the GST, saying: "Just give some to the government. Tomorrow when our government has become wealthy, they will give back to us. We have to sacrifice a bit; we help our government who is now in need. Tomorrow when they are more comfortable, they will help us back."

Echoing the sentiment was Ishah, 67, who believed that in order for the country to progress, the people had to face some difficulties at the beginning.

"I am for GST if we want to progress. Only certain unlucky people, and younger people have to suffer a bit.

"If we want to progress we have to suffer a little bit. As time goes by, people will adapt. We want a developed country, we have to sacrifice."

She said she could see the difference in pricing, but added it would be balanced by the various promotions offered by hypermarkets.

"There is a difference, but you can wait until there is a promotion. You can buy things that are cheaper, and compare prices.

Another shopper, speaking on condition of anonymity, said he didn't mind the GST as what mattered most was where and how the money would be used.

"I don't mind the GST. I'm concerned about where the money goes. It's not so much the GST, because the SST was 10% which was much more. if you take away the 10% and put in 6%, it is much cheaper now."

- TMI