GST already taking toll on small traders, claims Guan Eng

GEORGE TOWN, Jan 12 — Sundry shop owner Lee Soon Seng has run his business here for over 25 years, but is closing down soon due to the imminent implementation of Goods and Services Tax (GST).

The 60-year-old who does all his accounting for the business the old-fashioned way, through manual entries into ledgers, said he found the GST too daunting and confusing to incorporate.

Additionally, he felt it would cost too much to hire an accountant to help with the bookkeeping.

“It is too much trouble and I don’t understand the whole process, so I might as well just close down the business,” he told a press conference at Penang Chief Minister Lim Guan Eng’s office in Komtar today.

Lim claimed that Lee is the third trader in Balik Pulau to decide to close down due to the implementation of GST on April 1.

“Traditional businesses like Lee’s and even traditional medicinal halls may encounter similar problems and be forced to close down due to GST,” Lim said.
 

Along with Lee were three other sundry shop owners in Balik Pulau who lamented that they had to hire accountants to help with the GST implementation.

The trio — Loh Chee Hong, Law Chee Peng and Ong Chen Chow — were worried and also confused over the implementation of the new consumption tax.

They have decided to continue with their businesses, but are fretting over how much incorporating the tax will mean to their trade.

“They will have to charge the six per cent on some items and this will be charged on their clients who may not understand,” Lim said.

Lim said Pakatan Rakyat had appealed numerous times for Putrajaya to stop the GST or at least delay it for two years if it insists on introducing the tax.

“It should be deferred until we achieve high income status or else all small businesses and the people will suffer as it will inevitably lead to high inflation,” the Penang lawmaker said.

The DAP secretary-general then claimed that Putrajaya itself was unclear on tax’s workings, meaning the burden would be even more immense on Malaysians and businesses that must grapple with the new system.

The six per cent GST, which is a consumption tax on goods and services in Malaysia, is set to be implemented April 1.

Putrajaya introduced it to broaden its revenue stream that is criticised for being overly dependent on oil income.