KUALA LUMPUR, March 26 — The increase in food prices at Ramadan bazaars is not due to the sales and service tax (SST) implementation but rather the bazaar lots' high rental cost, said Prime Minister Datuk Seri Anwar Ibrahim.
He said the costs are partly due to some traders renting the bazaar lots from agents, who take advantage of the situation instead of renting directly from the local authorities.
“I acknowledge there is a slight increase in the prices, but I do not think it is due to the service tax, because according to the Statistics Department's survey, the increase is only around 0.2 per cent, and Ramadan bazaars have no direct relevance to the SST,” Anwar said.
He was responding to Kota Bharu MP Datuk Seri Takiyuddin Hassan's query on the government’s plans to mitigate the hike in food prices and Ramadan bazaar operational costs, following the increase in the SST from six to eight per cent.
The Prime Minister said that if the government does not implement the SST, it could have negative effects on the economy and national revenue.
— Bernama
