LABUAN: A supermarket here was found to have committed offences under the Price Control and Anti-Profiteering Act 2011.
Disclosing this here yesterday, acting director of Labuan Domestic Trade, Co-operatives and Consumerism Office, Aslani Dabi, said the supermarket should not be imposing the Goods and Services Tax (GST) which took effect from yesterday.
Aslani told reporters that based on their price checks they found several items in the supermarket were being sold 20 sen more.
The prices of milk for baby and toothpastes were among the most expensive items being offered for sale, he said.
“The net profit margin for a product on January 1 this year should equal the net profit margin on April 1.
“We found a supermarket here had increased its prices and we will issue them a notice to ask for explanation.
“We will investigate this matter under the Price Control and Anti-Profiteering Act 2011 where we will check on its business documents including invoices,” he said and affirmed that Labuan, being a duty-free island, should not have GST.
He explained that if the business owners said that they received their supply from Kota Kinabalu, then they should not include GST in the prices of products.
Even a 10 sen increase on April 1 is considered a hike. An investigation under the Act is a long process but if the business owner is found guilty, the operator can be fined up to RM250,000 for individual and RM500,000 for a company,” he said, adding that their office had received some complaints from the public on traders who increase the prices of their products, especially at coffee shops here.
He said Labuan Domestic Trade, Co-operatives and Consumerism Office was collaborating with Labuan Customs Department in their 15-day operation around Labuan town to check the business premises, including eateries and those increasing the prices of their products unreasonably.
Also present was the GST Unit Chief of Labuan Customs Department, Halun Haji Mohd Mutalib.