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Average household expenditure in the first month with the goods and services tax (GST) rose by up to 21 percent in some categories, according to Malaysiakini readers who took part in the portal’s GST survey last month.

 

Respondents were told to enter their expenditure levels for nine categories before the GST, and to do so again a month after GST was implemented, to measure the impact of the new tax on their daily lives.

 

The government earlier claimed that GST would bring down the prices in a long list of goods and services, arguing that at six percent, it is lower than the previous sales and service tax levied on most goods.

 

However, the survey showed that only recreational expenses have gone down.  Even so, it might not have been due to cheaper prices, but rather because of consumers tightening their belts.

 

In some instances, respondents reported slashing their recreation budget by an estimated RM350 a month to RM70 a month.

 

On the whole, average total expenses in the nine categories surveyed rose by 3.8 percent (from RM4,306 to RM4,472), with the bulk of respondents earning salaries of between RM3,000 and RM10,000 a month.

 

Transport expenses biggest jump

 

Of the nine categories, transportation registered the highest jump, costing an average 21 percent more.

 

It is not clear why this is so, given that the most commonly used fuel in Malaysia, RON95, is GST-exempt, while fare hikes for some public transport services only came into force in May.

 

Results of the other categories:

 

 

Most see total expenses up

 

Although households experienced a rise and fall in costs, depending on the categories, most respondents reported an overall rise in household expenses in the first month of the GST implementation.

 

According to figures plugged in by respondents, 61 percent experienced an overall rise in household expenses, some as high as 143 percent, while only one respondent found things remained the same.

 

The rest happily saw a drop in household expenses, the biggest drop by 53 percent.

 

More than 1,000 readers shared their expenses pre-GST, but less than 10 percent followed through by plugging in their estimated expenses in the first month after the implementation of GST.

 

Many of the responses were removed from the data set because they did not appear credible. For example, one respondent said she spent several thousand ringgit a month on groceries before GST, but spent less than RM100 after the tax came into force.

 

In other instances, responses were marked as “not applicable” for specific categories because it appeared to be due to a change of circumstances, and not due to changes in price or fares. For example, a parent reported spending RM800 for children’s transport to school before GST, but none after GST.

 

As such, the experiences of the final tally of 67 Malaysiakini readers whose responses were deemed acceptable for analysis, may not reflect the national experience of the GST.

 

Does it reflect your experience?  Share by commenting below, at Malaysiakini ’s Facebook or Twitter (@ malaysiakini ), or by dropping us an email at [email protected].

 

Tomorrow: Stockpiling families find no escape from GST

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