PAS warns 'Saya Suka Travel' govt of price hikes following SST expansion

Summary

• PAS info chief Ahmad Fadhli Shaari says Putrajaya should brace for price hikes following the SST expansion.

• He says instead of urging the masses to boycott outlets that raise prices, the government should study why retailers make such decisions.

PAS information chief Ahmad Fadhli Shaari cautioned Putrajaya of possible escalating costs following reports that some retailers may hike up prices following the expansion of the sales and service tax (SST).

In a series of Facebook posts, he pointed out that the issue was not about the percentage of the hike but rather how the tax expansion would eventually raise prices of the end product.

“Pakatan Harapan supporters easily ask us to boycott retailers that hike prices.

“It’s not as simple as that. As the government, they should study why retailers have no choice but to raise prices,” he said.

The PAS leader seems to be mocking Prime Minister Anwar Ibrahim, who had travelled to Italy yesterday on an official visit as the SST expansion took effect.

July 1 take-off

The SST expansion took place on July 1, with non-essential goods getting taxed between five and 10 percent.

A zero percent sales tax on necessities will be maintained.

A five percent tax will be levied on non-essential products such as king crab, salmon, cod, truffle mushrooms, imported fruits, essential oils, silk fabrics and industrial machinery.

Premium items such as racing bicycles and antique hand-painted artwork will attract a 10 percent sales tax.

At the same time, the scope of the service tax will expand to include six new services - leasing or rental, construction, finance, private healthcare, and education.

The government expects the expanded SST to increase revenue by RM5 billion this year, and by RM10 billion in 2026.

Mydin may raise prices

Citing a local media report, Fadhli said that Mydin Mall, a hypermarket popular among the B40 and M40 communities, would raise prices gradually starting in August after clearing its old stocks.

“Their new stock will be affected by the expansion of SST. This is what the mall’s managing director Ameer Ali Mydin said.

“Of course, it will not affect the B40 community because they don’t buy things from Mydin… this is what our ‘Saya Suka Travel’ (I Like to Travel) leader said,” the Pasir Mas MP added.

The Sinar Harian report quoted Ameer as saying that he would have no choice but to hike prices as his supplies would have done the same due to the new tax regime.

However, Ameer reiterated that he would not raise prices whimsically and would only consider the matter if costs escalate.

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