Government urged to label GST-exempted goods to avoid abuse

The government has been urged to label goods which have been granted Goods and Services Tax (GST) exemption to prevent abuse and deceit by traders.

Former Malaysian Trades Union Congress (MTUC) president Tan Sri Zainal Rampak said the government should instruct traders to label items which were not subjected to GST.

"I propose that the goods mainly daily necessities, be marked or have stickers affixed with colour codings so that the general public and workers are aware of GST relief on these goods," he told Bernama Saturday.

He said the government's move to exempt GST on essential goods and basic services brought much relief to workers.

He said with this initiative, workers and low income earners were confident that GST implementation would not burden them.

"Before the Budget 2015, workers were concerned whether GST will be a burden to them. The prime minister (Datuk Seri Najib Razak) has given the answer and constant monitoring by the authorities will also ensure that traders are kept in check," he said.

In the Budget 2015 tabled Friday, Najib said the government had agreed to expand the list of goods not subjected to GST.

The new tax system will be implemented from April 1 next year and among GST exempt items are diesel, liquefied petroleum gas (LPG), all local and imported fruits, white bread and wholemeal bread, coffee and tea powder and noodles.

In addition, the government also provides GST exemption on essential medication covering almost 2,900 brands for the treatment of 30 types of diseases, reading materials and newspapers.