Enforcement not enough to check price hike, says Ahmad Maslan

Deputy Finance Minister Datuk Ahmad Maslan blames traders who are still using the 'old stock' excuse not to bring prices of certain goods down, despite the abolition of the sales tax and exemption of GST on such goods. – The Malaysian Insider pic, May 13, 2015.Enforcement alone will not lead to a reduction in the prices of goods that should have come down following implementation of the goods and services tax (GST).

Deputy Finance Minister Datuk Ahmad Maslan said it was also incumbent upon traders to be more transparent and ethical in conducting their business in the matter of determining prices of goods.

He also said it was no longer tenable for them to continue using the excuse of old stocks in hand for maintaining prices, as it was more than a month since the GST was implemented.

Traders had also cited the difficulty in securing refunds for the old stocks as a reason for not dropping prices.

"The old stocks would probably have been depleted by now. New stock from the factory are no longer faced with the sales and service tax and as such, prices should come down.

"The traders are reluctant to reduce prices only so that they can make more profit," he added.

He told the media this after officiating the product quality compliance seminar in Kuala Lumpur today. The event was organised by TPM Biotech Sdn Bhd.

On Tuesday, Ahmad Maslan listed 295 items that should be cheaper following implementation of the GST.

The list comprised 22 products which were earlier subjected to the sales and service tax (SST) of 5%, but was now exempted from the GST.

There are also 273 products on which the SST was previously imposed at 10% but now subject to the GST of 6%. – Bernama