Its Chief, Datuk Seri Panglima Hajah Jainab Datuk Seri Panglima Haji Ahmad Ayid, said they received many complains from people at the grassroot level on the rise in prices of goods after the SST was implemented.
“Based on monitoring and also complains received by Wanita UMNO throughout the State, SST has caused to the rise in prices of goods and has not change the service charge rates because the Goods and Sales Tax (GST) also imposed the same rate.
“Obviously, the sales tax rate of 10% under the SST has resulted in the rise in prices of goods in the grocery stores and shopping malls,” she said in a statement today.
Jainab, who is also former Community Development and Consumer Affairs Minister, said when the Government imposed tax at 10% under the SST on the manufacturers, and the manufacturers collected the tax from the wholesalers who then sell to the retailers, then the prices of goods at the grocery stores and supermarkets goes up.
She said the rise in prices of goods since SST was implemented has caused burden to the people, especially those low-income group in the rural area.
“They do not have a choice and are forced to buy daily essential goods at much higher prices compared previously when under the GST,” she added.
According to her, the enforcement of the 6% service charge has also caused companies offering services like the restaurants making extra profit from that move.
“This has resulted in drastic increase in prices of food and drinks in the restaurants which has impact on the consumers.
“Previously when the Government announced a 0% GST, the prices of goods and services did not recorded an obvious decline. Now, the SST that involves 10% Sales Tax and 6% Service Tax have resulted in the prices of goods to go up,” she explained.
Jainab said the rise in prices of goods did not go well with the PH Government objectives and manifesto which wants to reduce the cost of living by terminating GST when it took over the helm from Barisan Nasional (BN).
At the same time, she urged the Domestic Trade and Consumer Affairs Ministry (KPDNHEP) enforcement unit to intensify inspections on traders who have taken advantage by raising the prices of goods.
She said strict action should be taken against traders who uses all sorts of excuses to raise the prices of goods.
“This include conducting monitoring on every chain of supplies and do exemption on approriate types of goods,” she stressed.
Jainab stressed that KPDNHEP should find a way to prevent traders from raising prices of goods as they like.
“Probably because of the decline in value of Malaysian ringgit which gives a bit of impact causing the rise in prices of imported essential goods, but this is not an excuse for traders to take advantage to raise the prices of goods,” she stressed.
She said although the KPDNHEP Sabah think the prices of goods after the SST being implemented are recorded as stable in Sabah, this was only based on the lack of complains received by the Ministry.
Jainab said based on complains received by the Wanita wing, there has been very obvious increased in the prices of goods in the rural area.
According to her, the attitude of consumers in the rural area who are not keen to report on the rise in prices of goods to KPDNHEP does not mean that the prices of goods in Sabah are stable.
“Based on the number of notices and cases of action taken by KPDNHEP on business premises in Sabah, it was clear that traders still commit various offences under the various enforced Acts.”
“As a citizen, we need to be on alert on opportunist traders,” she stressed.-By LSK/BNN