PUTRAJAYA: The Customs Department, which has braced itself for public confusion over Goods and Services Tax (GST), expects the situation to normalise within six months to a year.
One of the biggest hitches the department expects consumers to encounter is that of price differences at GST-registered and non-GST-registered businesses.
“If one retailer is registered and the next shop is not, consumers who go to the first shop are going to see an additional 6% tax.
“The other shop may be selling the same item at a different price because it has not registered for GST,” said GST director Datuk Subromaniam Tholasy.
This problem, he said, could last a few weeks.
Similarly, he said, there was public confusion over differentiating zero-rated (untaxed) and standard-rated (6% tax) items.
“The Government didn’t want to tax everything. But consumers may be confused by (products in) the grey areas,” he said.
An example is oil, which is zero-rated but only for three types (palm, coconut and groundnut). Others, such as olive oil, are taxed.
“We have communicated this to the public but whether they understand it is another thing. This kind of confusion is expected.”
He called on consumers to insist on getting receipts after their purchases and to check for a GST identification number, as well as the GST category.
“You have the right to ask for a receipt and if you want to know if the company is registered for GST or not, you can always use the 12-digit ID number to check via our website.”
The Domestic Trade, Cooperatives and Consumerism Ministry will also be on the lookout for inflated prices.
Subromaniam anticipated a price war among retailers after GST is implemented.
“Those who pass on savings to their customers will benefit,” he said.
The department will be distributing flyers that provide consumers with an easy-to-read list of taxed and untaxed items.
It will also intensify its hand-holding programme with GST-registered businesses.
“I’m sure that consumers will adjust quickly but there may be issues with traders that will have to be resolved,” he added.
