IN CAHOOTS WITH NAJIB? NOW KFC SAYS REMARKS SST ON ‘TWISTED’ – AS DOMESTIC TRADE MINISTRY ORDERS PROBE INTO KFC & MCDONALD’S OVER PRICE HIKES

KUALA LUMPUR – The Domestic Trade and Consumer Affairs Ministry will investigate McDonald’s and KFC following public complaints about price increases by both fast food chains.

According to the Astro Awani portal, the ministry’s deputy director of enforcement, Datuk Iskandar Halim Sulaiman, said an investigation was launched against KFC today.

“We started the investigation this morning; my officers have begun collecting information about KFC, how much prices rose,” he was quoted as saying.

When asked about McDonald’s, he confirmed that his enforcers will also visit the chain to monitor their prices.

Iskandar said that while the current controversy was around KFC, there were similar complaints made about McDonald’s existing price structure.

KFC adjusted its prices across the board this month, but invited controversy with statement that implied that the wholesale increase was related to the Sales and Services Tax (SST).

It clarified that this was not the case today, but only after former prime minister Datuk Seri Najib Razak had used it to attack the Pakatan Harapan government and the decision to abandon the Goods and Services Tax (GST).

Earlier this week, social media users began sharing posts that highlighted what appeared to be significant price increases in KFC’s menu items and meals.

Previously, consumers had also noted gradual increases in McDonald’s menu items.

The government zero-rated the GST in June and repealed it shortly after in favour of the SST that was brought back in September. – MALAY MAIL

KFC says statement on SST misinterpreted

KUALA LUMPUR— QSR Brands (M) Holdings Bhd, the parent company of fast-food chain KFC, clarified today that it did not mean to imply that the Sales and Services Tax (SST) was responsible for its price increase this month.

In a follow-up statement today, it explained that the tax regime made no difference to its retail prices as it is levied at the same rate as its predecessor.

“The marginal price adjustment has no relation to the SST, as previously the rate of six per cent goods and services tax (GST) was similarly charged to our customers.

“To this end, we hope our customers understand our menu has been specially put together to offer value for money options that cater to the different needs of customers,” the statement read.

Yesterday, KFC released a statement denying claims on social media that its prices have risen drastically.

It presented the increase as a price adjustment that also incorporated the SST. This and the GST were previously not included in the listed prices and imposed as a separate item.

This led to former prime minister Datuk Seri Najib Razak using the price increase to criticise the government and its decision to repeal the GST that he had introduced.

On Tuesday, a Facebook post claiming that a KFC outlet in Perlis had drastically increased the prices of its menu items started to spread on social media.

According to the post, the price of a KFC Snack Plate had increased from RM12.30 to RM15.30 while the Dinner Plate set had gone up to RM19.60 from RM15.60.

The Domestic Trade and Consumer Affairs Ministry said today it is investigating KFC and rival fast-food chain McDonald’s over complaints about their price increases. – Malay Mail

MALAY MAIL