Rafizi: Dozens of GST at Each Stage of Production

PANDAN, 19 Dec: The prices of daily necessities will definitely go up because the production of goods will be subject to the goods and services tax (GST) at every level.

The Strategy Director of Parti Keadilan Rakyat (PKR), Rafizi Ramli, said that for example, the production of rice at factories has to go through the GST at each stage.


“If we look at the production of rice, from paddy fields to factory, the use of machinery, machines, electricity at the factory, purchase of plastic packaging, they all are subject to the GST.

“Traders cannot make ‘tax returns’ because rice is a tax-exempt item. The option there is is to raise the price of goods to avoid losses.

“Factories are forced to raise prices to cover rising operating costs that are directly subject to the GST. The fact is, although goods are exempted from tax, the price will still go up,” he said, quoted from Keadilan Daily.

He said this in front of over 300 attendees at the ‘Understand GST, Reject GST’ briefing held at the Ampang Jaya Municipal Council (MPAJ) auditorium last night.

Rafizi said that stricter conditions will also affect the increase in price for goods and services.

“Every business that wants to implement the GST have to bear new costs such as hiring accountants to ensure that relevant tax records, such as invoices and tax receipts, are updated when audited by the Customs Department. This will add to the cost,” he said.

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