Slash GST in 2016 budget, urge small businesses
The 2016 budget will be tabled end of October and for small business owners, what they want to see is a major overhaul to the goods and services tax (GST).
The 6 percent value-added tax, implemented since Apr 1 this year, seems uppermost in the minds of several traders and stall operators in the Klang Valley whom Malaysiakini contacted.
These traders offer a range of responses on what the government can do to help them, in view of the budget that is to be tabled on Oct 23.
The 2016 budget will be tabled end of October and for small business owners, what they want to see is a major overhaul to the goods and services tax (GST).
The 6 percent value-added tax, implemented since Apr 1 this year, seems uppermost in the minds of several traders and stall operators in the Klang Valley whom Malaysiakini contacted.
These traders offer a range of responses on what the government can do to help them, in view of the budget that is to be tabled on Oct 23.
Mallika V Arasoo, a 58-year-old who works at a sundry shop in Brickfields, said that business has been slow ever since the implementation of the 6% tax.
“The price of one kilogramme of dhal used to be RM5.90 but now it is RM10.90,” she told Malaysiakini on Tuesday.
“People are very surprised when they come to buy. If GST could be 0%, that would be better.”
She added that it is not just her shop but all the other businesses in the area that are suffering.
Chan Wai Keong, who sells cendol and ais kacang - also in Brickfields - said that the GST has caused the costs of his ingredients to rise, forcing him to raise prices as well.
“I spend about RM300 a month buying things because of the GST.
“I do not want much; all I want is for the GST to be reduced.
“If GST was maybe 1% or 2%, I think it would be okay but 6% is too high.”
‘Reduce rate to benefit all’
Ahmad Azami Razali, 53, who owns a drinks stall in Petaling Jaya, noted that the GST benefits the government but not the people.
“It is the people who have to bear the brunt of it. There is no benefit to us.
“I am facing a burden because I have not increased my prices even four months after the GST was implemented,” he said.
When asked if he thought businesses should receive financial aid from the government, he brought up the issue of fairness.
“As a businessman, of course I would like financial aid or an allowance but what about everyone else?
“It is not fair if only some of us receive help. It would be better if the government could reduce the GST so that everyone can benefit,” he added.
Nurul Akmar Yusoff has tried to keep the prices at her brother’s kuih shop the same but was forced to increase prices.
“For the past 13 years, we have sold kuih at three for RM1, but after national day, we have had to charge RM0.40 per piece.
“Even when we were selling at RM1 for three pieces, people complained but now we cannot do anything (but hike up the price),” she said.
The 30-year-old added that she would at least like to be able to renovate the shop in Brickfields to make it more comfortable, especially when it rains.
‘Living costs risen’
Hasarbuali Mohamed Ali suggested a monthly allowance of RM500 instead of the GST being abolished.
The 54-year-old owns a stall selling drinks in Petaling Jaya, a trade he inherited from his father, and says that the cost of living has risen.
“I would like an RM500 allowance if possible because rental has increased, and I still need to pay my children’s school fees.
"I am not burdened by the GST because I do not need to register my business as I earn less than RM300,000 a year," he added.
Prime Minister Najib Abdul Razak, who is also the Finance Minister, has put up a microsite asking for suggestions on what should be included in the 2016 budget before it is tabled in October.
Posts can be made under 15 categories such as housing and urban living, healthcare, tourism and culture, security, taxation, and economic development.
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