BAGAN DATUK: The rise of market prices were not caused by the Goods and Services Tax (GST) but the actions of middlemen and “cartels” who manipulated prices for their own gain.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, who is also chairman of the National Cost of Living Action Council, said these middlemen and cartels also made things worse by accusing the government of raising the prices of goods and services when it was they who were the ones responsible.
“They blame GST as the main cause, but these cartels and middlemen are the ones who, before this, avoided paying the Sales and Service Tax (SST). It is because of these people that the government decided to (do away with SST and) implement GST.
“It is because they are angry with (the implementation of) GST that they are spreading these lies about the government. The decision of the government is the right decision,” he said at the opening of the Bagan Datuk ProMart and launch of the Cost of Living Programe here.
Also present was Prolink Retails Sdn Bhd executive chairman Datuk Dr Suhaimi Ibrahim.
Zahid said it was true that there had been an increase in production, import, foreign exchange costs at one time, but this was due to the fact that the ringgit had fallen against the dollar.
However, he said, the ringgit had now risen against the Greenback but the prices of goods had yet to come down.
“What this means is that the cartels are still playing a part as middlemen and taking a large profit margin.”
Zahid said the government understood that businessmen would always want profits, but these profits should be reasonable and they should not take advantage of and victimise the people.
He said the government had to take certain steps to help the people, including coming up with the 1Malaysia People’s Aid (BR1M) which was where the GST collection went.
Zahid said the government also planned to increase the number of ProMart shops, which would eventually replace Kedai Rakyat 1Malaysia (KR1M) shops around the country.
He said the government would have several companies to run the network of ProMart shops, instead of just one company, thus keeping costs down, and ultimately allowing for lower prices of goods.
Meanwhile, Suhaimi said the ProMart network of shops would be increased from the current 2,500 to 10,000 outlets by the end of the year, and 20,000 by 2020.