KUALA LUMPUR: Consumer associations are in agreement that the Goods and Services Tax (GST) will result in the fall of prices in goods and services.

They concurred with Deputy Finance Minister Datuk Ahmad Maslan, who had said that not all items and services would be more expensive after the introduction of the new tax system in April next year.

Federation of Malaysian Consumers Associations deputy president Muhammad Shaani Abdullah said the fall in prices of goods and services was one of the reasons behind the introduction of the GST.

“The GST will benefit consumers. However, I’m not sure if the public is aware of this as there has been minimal awareness about the benefits of GST.”

Shaani urged the authorities to explain the mechanisms of the GST to the public as they needed convincing on the finer points of the system.

“It is imperative to ensure that the public is given correct information about the benefits of GST, as they may be manipulated by irresponsible parties, who disseminate false facts, leading to the rejection of GST.”

On Sunday, Ahmad said goods and services taxed at 10 per cent under the current Sales and Services Tax (SST) would find taxes levied dropped to six per cent, while some would see a slight increase to six per cent and some would go unchanged, as some items and services, such as food, transport, education and medicine, would be exempted from the tax.

Malaysian Muslim Consumers Association chief activist Datuk Nadzim Johan said the public was generally unaware that that the GST would result in the drop of prices.

“Price drops will undoubtedly catch the public’s eye.

“Unfortunately, there is not enough exposure on the concept of GST, contributing to the rejection of the whole concept by certain groups.”

Kedah Consumers Association president Datuk Yusoff Ismail echoed Nadzim’s sentiments.

“But the focus must now shift to getting the public to trust that the GST is good for the economy. They also need to know how else the GST can benefit the public.”