Govt never washed hands off issue of price hikes - Johari
KUALA LUMPUR, March 18 (Bernama)--Second Finance Minister Datuk Seri Johari Abdul Ghani today stressed that the government never relinquished its responsibilities on the issue of increase in the price of goods.
On the other contrary, he said, the government constantly monitored traders who took advantage of the situation to reap huge profits, while it also provided subsidies to the public.
"We have given targeted subsidies totalling RM26 billion, including the 1Malaysia People's Aid (BR1M) as well as assistance to fishermen, farmers and padi planters.
"In the process of upgrading to a more efficient system, there will be some people who are affected, especially those in the lower-income group. So here, the government will help, that is our system," he told Bernama after officiating the launch of the Kuala Lumpur Federal Territory Friendship Society here.
Johari was responding to allegations by opposition parties that the government had washed its hands off the issue of the price hike of goods following the implementation of the Goods and Services Tax (GST).
"It is true there has been an increase in prices...the first time we introduced the GST system, prices went up because traders who had never paid taxes before now had to pay for the first time, the increase in the price of goods was to cover their increased costs.
"Eventually, after we give them time, they will compete among themselves. They cannot keep increasing the prices as consumers are savvy about buying things," Johari who is also Titiwangsa Member of Parliament, said.
He also lambasted the opposition who still could not understand the GST issue and said it was a taxation system to replace the Sales and Services Tax which was inefficient.
He said with the GST system, the government could track down tax evaders, something which could not be done through the SST system.
--BERNAMA
