After 1st April, this tax will be replaced with the 6 per cent Goods and Services Tax.
Hopefully, consumers can expect to see cheaper cooking oil at the supermarket shelves and grocery stores.
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PETALING JAYA: Domestic Trade, Co-operative and Consumerism Ministry warn businesses against profiteering from consumers in view of the Goods and Services Tax (GST) kicking in from April 1.
"Certain items that are now subjected to 10 per cent Sales and Services Tax (SST) should revise their products pricing accordingly when this is replaced by the 6 per cent GST from April ," said the ministry's senior principle assistant director Guna Selan Marian.
"By right, we should see cheaper pricing provided there are no increment in costs. It is an offence for businesses to manipulate prices and unreasonably profit from this," he told reporters after presenting his papers at the Deloitte Malaysia Price Control and Anti-Profiteering seminar here yesterday.
"Among consumer goods that will see reduction in tax quantum as a result of the SST being replaced by GST are cars, clothings, select food items and home appliances," said Deloitte Malaysia managing director/country tax leader Yee Wing Peng.
The tax consultant added the GST's input and output mechanism will allow the government to act on complaints by tracing the entire supply chain for elements of profiteering.
Section 14 of the Price Control and Anti-Profiteering (PCAP) Act 2011 states that anyone, in the course of trade or business, “profiteers” in selling or offering to sell, or supplying or offering to supply, any goods or services, commits an offence.
The law defines “profiteering” as making unreasonably high profit.
Section 18 of the PCAP Act states individuals guilty of profiteering will be fined RM100,000 or face jail time for three years or both. Repeated offenders will see a higher penalty of RM250,000 or five years of incarceration or both.
Corporates found guilty of profiteering will be fined RM500,000. If it is found to be a repeated offence, the penalty is raised to RM1 million.
Since the start of the year, Guna Selan said his ministry had embark on 'Ops Catut' to enforce against profiteering. In addition to introducing the Shoppers Guidebook, the government has open the 1-800-88-6800 hotline to receive consumer complaints.
"The government will always look after consumer interests and protected their rights. We have until end June 2016 to enforce against sudden higher profit margins arising from profiteering," he said.
More than 450,000 trading premises were checked and enforcement officers seized RM426,857 worth of goods and issued fines totalling RM279,166.
The second phase of the anti-profiteering enforcement exercise will be introduced on April 2. It will involve some 1,800 enforcement officers.