KUCHING: The Ministry of Domestic Trade, Cooperatives and Consumerism (KPDNKK) Sarawak deputy director Md Nawawi Abdul Rahman was satisfied with the zero-rated Goods and Services Tax (GST) compliance by retailers which came into effect today.

Nawawi led an operation in collaboration with the Customs Department to inspect and monitor the implementation of zero GST on business premises at Giant Hypermarket in Tabuan Jaya here today.

“Our operation is conducted to make sure all traders comply and meet the requirements with the implementation of zero GST so to avoid any manipulation of prices,” he told a press conference held at the hypermarket after a walkabout to check price tags on goods and discussions with Giant representatives present.

Other objectives were to ensure businesses do not take advantage by increasing the prices of goods and charges for services to make unreasonable high profit and that the net profit margin for a product or service was set in accordance with the law.

“We are happy that this hypermarket meets the new requirements for zero GST including (cash registers) system and price tagging,” he said.

Emphasising that attention will be given to daily essentials, basic household products as well as services, Nawawi revealed that up until yesterday (Thursday), 543 premises have been inspected throughout Sarawak involving 16,290 types of products.

“A total of nine complaints have been received from consumers with three reports on anti-profiteering and GST while six were on pricing.

“KPDNKK together with Customs will follow up with the reports and conducting operations from now until we are satisfied with the compliance so to ensure that the zero-rated GST can be fully enjoyed by the people,” he added.

The enforcement team has also inspected food outlets nearby the hypermarket as well as other goods such as electrical, furniture and many others.

“We also discovered that the price of certain products are way lower than the zero-rate, meaning to say that such businesses are able to lower the prices providing a favourable condition,” said Nawawi.