Businesses must reduce prices pending SST implementation: Customs D-G

PETALING JAYA: In the absence of a replacement consumption tax, Royal Malaysian Customs Department Director-General Datuk Seri Subromaniam Tholasy has issued a statement requiring businesses to pass on the savings from the zero rating of Goods and Service Tax (GST) to consumers, in the form of reduced prices.

He said the government will not implement Sales and Services Tax from June 1, but a date will be announced later.

"Therefore, all businesses are expected to lower the prices of their goods and prices with the zero rating of GST. The government will take strict measures to ensure the price of goods and services follow the Price Control And Anti-Profiteering Act 2011," he added.

Businesses can refer to a recently updated Frequently Asked Questions section on the Customs Department website on the transitional period of 6% to 0% for GST.

In his first press conference as finance minister, Lim Guan Eng announced that the SST would be reintroduced at 10% to replace the GST. In the first week of taking office, the Pakatan Harapan government announced it would zero-rate GST as a means to effect changes to the tax regime as soon as possible.