The Goods and Services Tax (GST) will be implemented only after the Price Control and Anti-Profiteering Act has been approved, Deputy Finance Minister Awang Adek Hussin said today.

asli capital market summit 131107 awang adek He said the act was in the final stage at the Attorney-General's Chambers and was expected to be tabled in Parliament by June this year.

"There is fear that traders might increase prices of goods because of the GST to make more profits.

"Therefore, we need to have a law to prevent profiteering by traders," he said in response to a question by Senator Nor Hayati Onn in the Dewan Negara here today.

Nor Hayati wanted to know when the GST would be implemented and measures taken by the government to ensure that its implementation would be accepted by the people.

Awang Adek said the government was aware of the concern among consumers on the implementation of GST.

"Actually, there are a lot to be gain by the government and the country with the implementation of GST, among them, a new source of revenue," he added.

No need to worry

He said there was no need for the public to worry about increase in prices of goods as most of the essential goods would be exempted from GST.

"Items which will be exempted from GST include agriculture produce, like padi and fresh vegetables, food items like rice, sugar, salt, flour, cooking oil, livestock, like cow, buffalo, pig, goat, chicken, duck, eggs (including salted eggs), fish, prawn, cockles and squid (including the dried and salted ones).

"Services with zero GST will include electricity supply for the first 200 units every month for domestic consumers, the first 35 cubic metres in water supply every month for domestic consumers, goods and services meant for export and international services," he added.

Awang Adek also said that only business companies with sales of more than RM500,000 a year would be subjected to GST.

"This means 78 per cent or 433,558 business entities will be exempted from the GST system," he added.

- Bernama