KFC has raised its menu items starting this month to account for the 6 per cent SST. — Reuters pic

KUALA LUMPUR, Dec 27 ― Datuk Seri Najib Razak today accused the ruling Pakatan Harapan (PH) of prioritising businesses instead of consumers, citing a recent statement from the local franchise owner of fast food chain KFC as proof.

The former prime minister who was also the ex-finance minister claimed more Malaysians have become more aware of this discrepancy and that they are allegedly paying higher prices under the new Sales and Services Tax (SST) regime compared to the Goods and Services Tax (GST) which he introduced in 2015.

“Yesterday’s explanation by KFC that their retail prices are due to the inclusion of SST is an example of why SST is not transparent,” he wrote in his latest Facebook posting.

The Umno lawmaker referred to an admission by QSR Brands (M) Holdings Berhad managing director Datuk Seri Mohamed Azahari Mohamed Kamil yesterday that KFC has raised its menu items starting this month to account for the 6 per cent SST.

“We wish to clarify that starting from December 2018, our listed prices are inclusive of 6 per cent SST. The are some marginal adjustments to the price of our products to ensure we are able to continue providing our customers with the same quality, finger-licking good chicken without compromise,” Azahari was quoted telling news portal Malaysiakini following remarks on social media about a recent price difference in KFC goods.

Najib said he had spoken on the lack of transparency in the SST compared to the GST prior to this, asserting that the KFC statement debunked arguments by PH leaders that their tax is the better one.

“The PH government finance minister’s propaganda that the majority of goods are spared SST or its numbers are lower than GST are also inaccurate.

“Every business had to bear legal service fees, accounting service fees, transportation costs and et cetera. And all these services are charged a 6 per cent tax under SST,” he stressed, pointing that business were able to claim a refund for these charges under the GST previously which they could not do now.

He sought to drive home his point that businesses are forced to swallow the hidden SST charges, which he claimed were then passed on to the end consumer, resulting in the price hike that drives up living costs.

“For PH: Quietly whack. For businesses: Quietly add. For consumers: Quietly whacked,” Najib added.