KUALA LUMPUR: Finance Minister Lim Guan Eng has finally admitted that the prices of goods rose following the implementation of the Sales and Services Tax (SST), said Datuk Seri Najib Razak today.
The former prime minister said Lim’s admission was in stark contrast to his special officer Tony Pua’s recent claim the prices of goods would go down after the re-introduction of the SST.
“Guan Eng now says the rising prices of goods is not entirely due to SST and that there are many other factors including imported goods, depreciation of the ringgit, festive seasons, smuggling activities, droughts in producing countries and traders who want to reap excessive profits.
“Previously, he repeatedly said GST (Goods and Services Tax) was the main cause of the rising prices of goods. He even sang a song about GST with children.
“Now, he says the prices of goods rose not because of SST but because of many other factors. Maybe there will be an SST song after this?” Najib said in a Facebook post today.
On Thursday, Lim said the prices of goods and services are not entirely due to tax elements such as the SST as other factors also influenced the price movements.
Lim had said other factors included imported goods, depreciation of the ringgit, festive seasons, smuggling activities, drought in producing countries, and profiteering by businesses and traders reaping excessive profits.
“Generally, price hikes are caused by supply and demand for goods and services in the market,” Lim was quoted as saying.