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Malaysians rush to stock up before GST kicks in

KUALA LUMPUR — Malaysians rushed to stock up on household items and other goods before the Goods and Services Tax (GST) comes into force today, as confusion over which items would be affected by the broad-based consumption tax caused a frenzy.

KUALA LUMPUR — Malaysians rushed to stock up on household items and other goods before the Goods and Services Tax (GST) comes into force today, as confusion over which items would be affected by the broad-based consumption tax caused a frenzy.

Across the country, crowds poured into gold shops, petrol kiosks and supermarkets, even though more than 900 basic items such as sugar, cooking oil, fresh meat and petrol will be exempt from the 6 per cent GST, based on a list the government released in October last year.

“Our problem is that the explanation so far has not been clear. The government has been using different sources or different approaches and most of them have been very technical,” said former International Trade and Industry Minister Rafidah Aziz yesterday.

“For instance, who understands what ‘zero-rated’ means? Why can’t they just use the phrase ‘tak kena GST’ or ‘no GST’. That’s much simpler and easier to remember.”

She added that Putrajaya’s reliance on the use of cartoons, billboards and technical jargon such as “zero-rated” for the past year to explain GST has left Malaysian consumers, including herself, more confused over the new tax system.

Ms Azarina Mat Shaari, a mother of two, was among those who went out to stock up on goods, buying three months’ worth of items that her children would need.

“We are stocking up on things like milk, food and diapers. But we can only buy so much. Once we finish the three months’ supplies, we have to face the GST,” she said.

Factory manager Foong Hoong Khoon admitted being confused about the GST, but he did not plan to buy anything in bulk ahead of its introduction.

“I think many people are unsure too. I think the government should not impose GST on all goods, but only on high-end items.”

One of Putrajaya’s efforts to educate the public on GST through a music video recently received heavy criticism from Malaysians after it went viral on the Internet.

The video, purportedly created by the Customs Department, hailed the virtues of implementing GST, but was panned by critics as sad, cheesy and “reminiscent of the 1970s”.

The new tax will replace the current Sales and Services Tax (SST) of between 5 per cent and 10 per cent.

While prices are set to increase for many non-exempt goods, certain goods, such as new cars and electrical appliances, are expected to become cheaper, as they will be subjected to the 6 per cent GST, instead of 10 per cent under the SST.

The GST has been strongly opposed by the opposition, which said it would further burden Malaysians financially.

In the meantime, to ease the transition period, the Domestic Trade, Cooperatives and Consumerism Ministry has set up a round-the-clock operations room to monitor prices and take complaints from the public on GST matters after the tax kicks in. AGENCIES

Tax-exempt items include:

- RON 95, Diesel and LPG fuel

- Essential items such as: Rice, sugar, salt, flour, cooking oil, coffee, tea, poultry, fish, among others

- Public transport (LRT, KTM, Buses)

- Sale and Rental of property

- Books and reading materials

- Healthcare and dental services

Taxed items include:

- Restaurant bills

- Domestic flight fares, fuel, passenger service charge (airport tax)

- International flight passenger service charge (airport tax)

- Hotel room charges

- Electrical appliances such as: Televisions, refrigerators, air-conditioners

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