Car industry players were enjoying brisk sales thanks to the zero-rate GST (Illustrative image. Source: The Star Online) Kuala Lumpur (VNA) – Malaysianbusinesses have reported an increase in sales since the goods and service tax(GST) rate was set to zero at the start of this month, according to the localnews website The Star Online.
President of Malaysia-Singapore CoffeeshopProprietors’ General Association Ho Su Mong said its 20,000-odd members inMalaysia recorded between 10 percent and 20 percent increase in patronage.
“There is a psychological effect to it; morepeople are coming in with higher expenditure power,” he said.
In the long run, the general costs of goodswould decrease by more than 6 percent as the GST had affected different stagesof the supply chain, he added.
At the Council of Eminent Persons’ meeting withentrepreneurs on June 18, former governor of Bank Negara Malaysia (the CentralBank of Malaysia) Zeti Akhtar Aziz said she hopes Malaysians would continue tobenefit from the zero-rate GST.
“More people have been saying that there isgreater vibrancy (in economy) now and people are starting to spend money,” shesaid.
Meanwhile, President of Malaysian AutomotiveAssociation Aishah Ahmad said car industry players were enjoying brisk salestoo.
Most car companies received a lot of bookingsand delivery requests, she said, adding that car distributors are tryingtheir best to fulfill the demand of customers.
However, the zero-rated GST has a relativelysmaller effect on other industries such as sundry goods and daily necessities. -VNA
VNA
