GST Implementation and Its Effect

As of now, four months into GST implementation, most of us in Malaysia are getting used to it.

We know how to read price tags and official receipts.

Those who work in the Account Department or Finance Department should at least know how to key in input and output tax into the accounting system and also to file the GST returns.

There are also fewer and fewer complaints on GST impact on local news. It seems like the rakyat is slowly getting used to the GST implementation.

Inflation as an impact from GST implementation

But, one thing for sure, the rakyat really feel the pinch of the price hike.

One specific of honey from Australia was priced at RM31.90 before GST implementation. But when I purchased the same honey in Apr’15, it was RM36.90.

Last year, a ream of a branded paper cost RM9.50. Today, the same ream of branded paper at the same stationary store cost RM11.13 (RM10.50 + 6% GST).

Then, A specific brand of facial toner cost me RM38 in early 2014, then RM42 toward the end of 2014. In Apr 2015, the same facial toner cost me RM55!

I am not sure if the price hike was caused by the dropped in Ringgit value or because the supplier had been charged higher by the producer due to high demand.

No matter what, the huge price difference after GST implementation is really unacceptable to me.

I noticed that everyone now are more concerned about their purchase, be it at the Kopitiam, wet market, the supermarket or at stationery stores.

Everyone is trying to get the best deal and trying to stretch their ringgit further.

This is a domino game. When everyone trying to hold back from spending, the economy will be affected.

In the long run, let’s hope that the GST implementation brings us more good than harm.

Read more: Do you feel the pinch of the rising cost of living in Malaysia?

photo credit: USDAgov Grocery receipt medium via photopin (license)