KOTA KINABALU – The government’s move to implement the Goods and Services Tax (GST) next April is not the cause of the increase in prices of goods and services, according to Customs Director Dato Dr. Janathan Kandok.
Janathan explained that the GST rate is 9 percent lower in comparison to the current sales tax.
“Under today’s sales and services tax, many goods are sold with a 10 to 15 percent tax rate. However, once the government replaces the current tax system to GST, tax rate will drop to 6 percent,” he said when contacted by SayangSabah today.
Janathan further added that price hike is caused by the demand and supply factor of goods or services among consumers.
“If production or services is less but demand is high among consumers, then the market price will definitely increase. This has nothing to do with GST,” he said.
Aside from local goods, Janathan said that the increase in prices of import goods is also not a result of GST.
“If there is a price increase in goods coming from overseas, then importers will also have to increase the selling prices of these goods to local consumers,” he said, adding that natural disaster is also a factor causing prices of goods and services to increase.
Janathan dismisses the negative opinion of certain parties claiming that the implementation of GST will cause a price hike in goods and services and therefore burden consumers in the country – By Fizah Yusof & Nuzir Andi Samsiar / SayangSabah
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