PARLIAMENT | The higher food prices at this year's Ramadan bazaars are not due to the increase in the sales and service tax from six to eight percent, said Prime Minister Anwar Ibrahim.
Instead, he said it was due to the excessively high plot rental costs imposed by local authorities.
Anwar also said there was no reason for the local authorities to impose such a high rent and urged them not to burden Ramadan bazaar traders.
"I acknowledge there is a small impact (from the price increase), but I do not think (the increase in food prices at Ramadan bazaars) is due to the SST.
“If this is specifically about the Ramadan bazaar, which I have visited in four to five places, I notice the rental cost (of the plot) is too high.
"So, we have given instructions to the local councils, if they manage the costs for the bazaar plots, do not press the traders in this current situation," he said during a ministerial question session in Dewan Rakyat today.
Minor side effects
Anwar said this in response to a question from Takiyuddin Hassan (PN-Kota Bharu) who asked whether the SST increase which started on March 1 has led to complaints from Ramadan bazaar traders.
Takiyuddin also wanted to know whether it caused them to incur losses and be unable to pay their rent for the plot.
Anwar said in addition to the excessively high rental costs, some local authorities are also accused of handing over their management to agents.
"Eventually, tenants do not rent directly from the local councils. So, the cost (rent) increases," he added.
Anwar, who is also the finance minister, admitted that the SST increase from six to eight percent has side effects that must be controlled.
"Yes, there are minor side effects that must be controlled. I agree we should monitor.
"As for the Ramadan bazaars, most complaints are due to the high rental rates," he reiterated. - Mkini
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