Action and fiction in GST saga

More clear information needed, and consumers must take more care when making purchases.

FMT LETTERS

from Darshan Singh Dhillon, via email

One month has gone by since the implementation of GST, where Malaysian consumers now pay taxes based on their consumption pattern. The Malaysian Consumers Movement is glad to note the absence of serious administration glitches.

This goes to show that the government is well prepared for its introduction. It is only natural to experience minor issues and it is vital to strengthen the existing system. Needless to say, perfection will take time as we have seen in other countries which have implemented a similar tax system.

We must take a long term view and that entails ensuring all segments of society are well versed with the GST system, and what it entails.

There are segments of the community, especially since in rural areas who lack an understanding of this new tax regime. Conflicting information made available by interested parties has caused relative amount of confusion and the Government must accelerate efforts to explain it in simple terms to the people.

To gain consumer confidence, explanation given must be consistent with market conditions i.e if the government say that prices has gone down, then this fact must be supported by quoting real time experiences. The economy risks contraction if consumers decide to hold back spending due to inflation.

Currently, we still see traders taking advantage by indiscriminately raising price citing GST. The MCM has made available an avenue for consumers to lodge complaints to a dedicated email address,complaints@consumermovement.org.my  , to cite any unfair business practices experienced for further actions to be taken.

We have seen a steady flow of complaints since its implementation but we are glad that enforcement authorities are swift to act. Customs officers are disguising themselves as mystery shoppers and this is welcomed. By charging errant businesses the government has demonstrated its political will to act and this sends a very strong message.

It was good to note that action is being taken, such as that towards a restaurant owner, as reported in a leading newspaper. Let us hope that this momentum is not lost along the way.

We have maintained that strict enforcement will be the key to its successful implementation. Common type of complaints are exorbitant price increases of certain consumer products especially at eateries, dubious tax invoice or traders refusing to issue receipt, service tax charge and GST on pre-paid phone cards while consumers continue to be unclear on types of products which are subject to GST or exempted. This gives an opportunity to traders to short-change consumers.

Taking this opportunity, the MCM would like to advise consumers not to opt for no-receipt option when making a purchase, as they will not be able to obtain redress should there be any issues with the product purchased or service subscribed.

Darshan Singh Dhillon is president of the Malaysian Consumer Movement and an FMT reader