KOTA KINABALU: Despite numerous seminars, public service announcements (PSA) and various other efforts to convince the people that the Goods and Services Tax (GST) will not be a burden, bulk buying and lack of understanding on how it works were among the things that made up the scene yesterday as the public bought goods in bulk on the eve of its implementation yesterday, and traders still not knowing how it will affect their businesses.
An observation at nearby supermarkets such as Servay Hypermarket, Chiu Thai Seng and CKS supermarket Millennium Plaza, saw consumers buying in bulk in view of the GST implementation today. Items such as rice, pads, diapers, processed and canned foods as well as formula milk were among the ‘hot-selling’ items with shelves being emptied as consumers bought them in big amounts.
People were also flooding insurance outlets as well as banks to settle their matters and payments at pre-GST prices in view of the tax’s implementation today.
Smaller shop and eatery owners however are still unsure of how the implementation of GST will affect their businesses. Regardless, a majority of them chose to maintain the prices of food and beverages, hoping not to be hit by the blow of a newly-implemented tax that many still do not understand.
“I’m still trying my best to maintain the prices of goods at my shop,” said 64-year-old Helen Chong who operates a sundry shop at Taman Delima in Penampang.
Nevertheless, she had been buying certain items in bulk including instant noodles and toilet rolls at ‘pre-GST’ prices to stock up for as long as she can after GST is implemented.
“I thought that my customers who are mainly just residents around this neighbourhood, can benefit from buying GST-imposed items at pre-GST prices long after its implementation, even if it’s enough for only a month, it’s still good enough,” said Chong.
Yanto Ngatmo, 49, operates a restaurant at Jalan Gaya and has been in business for over 20 years.
Despite having registered his business for GST and attending a seminar on the newly-introduced tax, Yanto admitted he is still unclear about how the tax works.
“For instance, we were informed that GST will only be imposed on businesses earning an annual income of RM500,000 and more. But recently we were told that GST will be imposed on businesses that had registered for GST. So, I’m not too sure,” said Yanto.
He added that they also heard rumours that GST’s implementation will be postponed for two weeks.
“Whatever it is, I see that many still do not understand the concept fully, including myself,” said Yanto, adding that he is still not sure whether there will be a need to hike up prices.
He said that those that will be adversely affected by GST will be the small and medium entrepreneurs (SMEs).
Yanto disclosed that there is no increase in prices in his restaurant, except on cigarettes, which starting today will be sold at a new price, an additional of RM0.50 to the existing prices.
“Many shop and restaurant owners also opted to stop selling cigarettes to avoid from having to pay GST,” said Yanto.