News & Articles Consumers have no confidence in GST complaint channel
Consumers have no confidence in GST complaint channel
24 Mar 2015
As the implementation of the goods and services tax (GST) approaches, voices of discontent have already begun flooding media channels, social media and coffee-shop talk.
A major source of frustration has been the lack of clarity on the actual impact of the 6% tax on the cost of a wide array of items and services, amid reports of complaints from small business owners who are closing shop, citing increased costs and uncertainty on how to run their businesses once the tax kicks in on April 1.
Those opposing the GST implementation have also argued that the new tax scheme and the general confusion surrounding it will give room to errant traders to raise prices indiscriminately.
These frustrations were on a boil at a protest organised by Parti Sosialis Malaysia (PSM) yesterday outside the Customs Department office in Kelana Jaya, Petaling Jaya.
Scuffles erupted between demonstrators and police and the day-long protest was capped with the arrest of more than 80 people.
PSM secretary-general S. Arutchelvan said the group was demanding that Customs officers explain how consumers and the public would be protected against unscrupulous raising of prices, and were renewing calls for the GST to be postponed.
The demonstrators had submitted 106 questions to the department and had prepared to wait for the answers until police broke up the demonstration at 5pm yesterday.
The government has repeatedly tried to assure Malaysians that all steps will be taken to ensure that unscrupulous business owners do not raise prices unreasonably.
Errant traders caught unlawfully raising their prices face up to RM50,000 fine or five years' jail and the government has set up an online GST-related complaint channel where the public can raise up their concerns.
However, the main contention of GST opposers is the lack of action against unscrupulous traders.
"The supposed penalties and complaint channels are no assurances, because we question how efficient will the Customs officers be in actually responding to our complaints and conducting checks on businesses," said market analyst Sam Wong.
The Malaysian Insider decided to lodge a complaint on the GST site against a particular institution of education seeking to raise its fees after April 1. We hoped to ascertain just how easy or difficult the process was, and to evaluate the speed in which our complaint was attended to.