Mydin boss: Zero-rated GST doesn't mean it's minus 6 percent

As the managing director of popular hypermarket chain Mydin, Ameer Ali Mydin welcomes the zero-rating of the GST.
The government's move, he said, was not just good news for consumers, but for traders as well, especially those who own business chains.
However, Ameer sought to clear the confusion over the prices of goods after the zero-rating.
Although the GST will be at zero percent come June 1, Ameer said consumers must subtract 5.6 percent from prices of items after GST, instead of simply subtracting six percent.
"For example, the price of an item before the GST is RM10, it becomes RM10.60 after the GST.
“Consumers cannot subtract six percent but they have to subtract 5.6 percent or divide it with 1.06.
"If RM10.60 is subtracted by six percent, the price of the item would be RM9.96, which is not the original price of the item.
"I think this confusion must be explained to the people so that they do not question the price of items that have been zero-rated," Ameer told Malaysiakini.

Ameer (photo) also advised consumers to be patient if certain items that still displayed the previous prices.
This is because hypermarkets like Mydin and Tesco have hundreds of thousands of items that need to repriced, he explained.
After June 1, consumers should also check their receipts, Ameer added, to ensure that their purchases are not charged GST.
"They can also check the price of items using the price checker or at the payment counter.".
The Finance Ministry had announced on May 16 that the GST rate will be reduced from six to zero percent come June 1.
The removal of GST was part of the current Pakatan Harapan government's election manifesto, which it promised to implement within its first 100 days in office.
More focused BR1M
Though agreeing that the government should continue with the 1Malaysia People's Aid (BR1M) programme implemented by the previous administration, Ameer proffered a few suggestions for its future disbursement.
He recommended that it should be focused on households earning less than RM2,000 a month, and that it should be paid out monthly. This, he said, would ensure that the money is used to buy necessities.
"Distributing BR1M once a month or once every two months is better than giving it once or twice a year or during festivities, because Hari Raya clothes are not necessities," he said.
Finance Minister Lim Guan Eng yesterday announced that the government will hand out BR1M payments next month before the Hari Raya Aidilfitri celebrations.

He also indicated that the aid programme will be given a new name. -Mkini