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Guan Eng: GST's implementation was weak

Jul 19, 2018

The price hikes under GST were due to its weak implementation. 

Finance Minister, Lim Guan Eng says it's primarily because the previous government failed to provide GST refunds to businesses on time.

Image source: The Star

"Technically there shouldn't be a difference, but why is there a big difference? Because of the failure to provide quick refund. That is why GST had such a big impact on prices."

Because of the delayed refunds, businesses had to compensate by increasing the prices of their goods at every stage of the production chain.

Lim says he will reveal the reason for the refund delays later. 

Lim also announced a list of items that will be exempted from SST when it's reintroduced in September. 

It includes infant formula, glasses frams, small capicity motorbikes, sardines, banking services and private medical fees.