'Shopping guide' on GST-affected items out soon

The guide will indicate what the price increases or cuts of over 300 items would be after the GST implementation which will be levied at 4 per cent.

The government will soon come up with a guide to help shoppers gauge how prices are expected to change when the Goods and Services Tax (GST) comes into force in the middle of 2011.

Dubbed the "shopping guide", it will consists of over 300 items affected by the impending value-added tax.
The proposed guide will indicate what the price increases or reductions of these items would be following the GST implementation which will be levied at the rate of 4 per cent.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the government is also expected to introduce legislation to prevent profiteering on the tax changes."

The anti-profiteering Bill will be tabled in Parliament in March next year by the Domestic Trade, Cooperative and Consumerism Ministry," he told editors during a briefing on GST in Putrajaya yesterday.

Briefing them was Datuk Seri Idris Jala, chief executive officer and deputy chairman of the Performance Management and Delivery Unit (Pemandu). He said a special committee to combat profiteering and undue price increases will also be set up."

This special committee will establish the Price Monitoring Council (to monitor prices of selected basic goods and services) ... For those (individuals and businesses) who try to profiteer by raising prices, we will make sure that they will be heavily penalised," he said, adding that enforcement activities will be carried out by the Domestic Trade, Cooperative and Consumerism Ministry."

For example, the existing sales tax levied on some items is 10 per cent and with GST the rate will be 4 per cent. If the retailer continues to charge at the same price, you know he is profiteering because in theory he should be able to reduce his price of goods," said Idris.

He added that the government will enlist the support of hypermarkets to be the price setter.

Source : Business Times