GST to make F&B industry more competitive, says Ahmad Maslan

The food and beverage industry (F&B) will be more competitive upon implementation of the Goods and Services Tax (GST) next Wednesday as the new tax regime enables businesses to lower prices.

Deputy Finance Minister Datuk Ahmad Maslan said the GST enables F&B companies to benefit from lower production costs following the input tax credit advantage.

"Under the Sales and Services Tax, traders cannot make a claim for input tax.

"With the GST, prices can be indirectly lowered due to the reduction in the cost to traders of 6.0 per cent following the input tax," he told reporters during a visit to the Domino's Pizza outlet in Sri Rampai today.

Ahmad Maslan urged all suppliers in the F&B industry to register their business for the GST to enable them to make input tax claims.

He said the GST could contribute an additional 0.3 per cent to the Malaysia's gross domestic product (GDP) and 0.5 per cent to exports in 2015 and 2016.

"The higher exports are derived from the export of goods on which the GST is not imposed," he added.