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GST puts damper on Raya spending

PETALING JAYA — With the Goods and Services Tax (GST) weighing on everyone’s minds, spending for Hari Raya has seen mixed outcomes, with many slashing their Raya budgets.

While shoppers are still spending for Hari Raya, many have reduced their budgets in the face of GST and the decline in the value of the ringgit. Photo: The Malay Mail Online

While shoppers are still spending for Hari Raya, many have reduced their budgets in the face of GST and the decline in the value of the ringgit. Photo: The Malay Mail Online

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PETALING JAYA — With the Goods and Services Tax (GST) weighing on everyone’s minds, spending for Hari Raya has seen mixed outcomes, with many slashing their Raya budgets.

Malay Mail spoke to consumers who expressed a reluctance to spend because of GST and the recent drop in the value of the ringgit.

Senior officer Mohd Faizal Yusri, 38, said he was originally looking forward to this year’s Raya because of the new addition to his family.

“My wife and I were planning to get a matching set of Raya clothes because this year we will be celebrating with our newborn child, but we will wait till the last week of Ramadan when prices are heavily discounted,” he said.

Mr Faizal also said he had to allocate an extra amount in preparation for Raya because of the GST incurred.

Ms Izyan Khairina Khairul Anuar, 29, a commercial executive, is not planning to return to her hometown because it would require an additional budget for petrol and toll charges.

“We were planning to celebrate Raya in moderation, just as we do every other year. The only difference is that this year we’ll be celebrating Raya in Kuala Lumpur. A trip back to our hometown would be costly,” she said.

Ms Izyan also said the implementation of GST had taught her not to spend excessively.

“My husband and I are recycling last year’s Raya clothes and we’re only buying new ones for our child,” she said.

The situation in Penang could not be more different.

According to Mr Mohamed Ashraf, 70, the owner of a cloth shop in Lebuh Chulia, business remained unchanged despite the implementation of GST from April 1.

“The manufacturer used to charge sales tax of 10 per cent but I am now only charging 6 per cent GST, so the price of the cloth is actually cheaper, except for American imports because of the ringgit’s decline,” said Mr Ashraf, who has been managing the store since 1963.

“I see a change of trend where customers buy clothes whenever they get their salary and don’t wait until Hari Raya.”

Roti jala stall owner Taha Amir, who runs a stall at the bazaar Ramadan in Lebuh Queen, Little India, said he did not increase his food prices.

“Most of the ingredients used to make roti jala are GST-exempted, so there is no reason to increase prices,” he said.

“Moreover, my customers are important to me. I have been running my stall for the last 13 years.

“It is crucial to keep their loyalty for future business.”

In Ipoh, consumers have taken measures to prevent themselves from going overboard on Raya shopping.

Ms Husni Wahab, 58, said she was forced to limit her Raya budget because of the increase of prices of everyday goods such as cooking ingredients.

“Actually, the prices of must-have Raya items such as apparel and cookies have only increased slightly,” she said.

“But I have reduced my budget as I need to fork out more for groceries such as vegetables and other essentials.”

Mr Mohd Ruslan Ahmad Mahir, 30, chooses not to shop now, preferring to survey prices until Hari Raya draws near.

Previously, he could simply choose and pay for clothing for himself, his wife and their baby.

“I cannot do so for this year’s Hari Raya because of the price hikes, especially on apparel,” he said.

“Just now, my wife decided not to buy a jubah that cost RM90 (S$32) last year but is now priced at RM150.”

It has not been any easier for Ipoh business owners.

They complained they have been facing losses as many of their regular customers are moving away to buy cheaper stuff from other traders.

According to Ms Robaatun Hadayiah Harun, 52, she had never faced such a slowdown in business since operating at the Angsana mall complex in 2000.

“I do not impose GST on prices and charge the same as before, but I have stopped giving out discounts,” she said.

Most of her regular customers told her they could not afford to buy as much as they used to. Some have even stopped buying from her.

“This year’s business is the worst by far,” she lamented. THE MALAY MAIL ONLINE

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