Press Digest - Consumers need to check 'zero-rated' and 'exempted' supplies list before stocking up

PETALING JAYA: Consumers may be shopping till they drop in the final countdown to the Goods and Services Tax (GST) era but how many of them have checked the "zero-rated" and "exempted" supplies list to avoid stocking up on the wrong items.
According to a report in Sin Chew Daily today, many shoppers were seen rushing for infant formula, toddler milk powder, adult diapers, powdered Milo, coffee powder, personal hygiene products, canned food and even rice. But rice, along with infant formula and coffee powder, is not subjected to GST.
"Zero-rated" supplies and goods which are currently subjected to 10% Sales and Service Tax (SST), such as electrical products, will not see a price increase with the implementation of GST. On the contrary, their prices will most likely drop.
Zero-rated supplies include newspaper, white and wholemeal bread, rice, rice vermicelli, noodles, sugar, salt, cooking oil, meat, local and imported fruits, diesel, RON 95 petrol, cooking gas, eggs, fresh vegetables, fish, prawn, coffee powder, infant formula, public transport fares, schoolbus fares, textbooks, reference books, school miscellaneous fees and examination fees.
Goods that will likely see a drop in prices as a result of the replacement of 10% SST with the 6% GST include TV sets, refrigerators, air-conditioners, home theatre systems, gas stoves, cotton bath towers, colouring pencils, toothbrushes, hair-blowers, antiseptic liquid, dinning set, diapers, 850cc vehicles and aerated drinks.
On the other hand, dining out at restaurants is going to cost more with GST. Goods that will see price increases include handphones, computers, laptops and notepads, broadband services, magazines, photocopiers, printers, milk powders (for three-year-olds and above), toys, RON 97 petrol, freight charges, clothings, shoes, bottled drinking water, stationery, toilet paper, canned sardine and tuna, 3-in-1 coffee, Milo, instant noodles, seasoning sauces, lipsticks, watches, ice-cream, cheese, oats and cereals.
Service charges currently being collected by the service industry and restaurateurs will also be subjected to GST.