In GST rollout, small-time traders have no choice but to raise prices

Small-scale traders, especially street vendors, are in turmoil over the Goods and Services Tax (GST) that’s due to roll out tomorrow. 

Food vendors are fearing the worst, as their already small profit margins will likely dwindle to nothing once the GST charges pile up on the price of ingredients and other necessary components of their business. 

“Of course fresh produce like chicken, beef, and fish are exempted from the GST, but what about everything else? Out of all the things I need to keep going, I’m sure the GST will be applied to many of them, like tomato and chili sauce,” said 49-year old food stall operator Nasita Khamis. 

“We’re burdened by the GST. If we raise prices, no one will buy our food. If we don’t, we come out losing too. How are we supposed to do business? We might have to close shop. Some customers are complaining that our prices are already too steep, even though we’re making so little profit as it is,” she told Sinar Harian.

Pisang goreng vendor Siti Noor Marliana Suhaimi, 19, shared similar anxieties over the new tax, citing rising prices for essential items even before the tax is introduced.

“If you ask me, the country’s not an advanced nation yet, people’s wages aren’t comparable to developed nations. So why introduce the GST, when so many people are still struggling? It’s obvious the government doesn’t care about the people’s troubles,” she said. 

Marliana also lamented the lack of clear explanations on the new tax from government agencies, and expressed her doubts as to the Federal Government’s readiness to implement the tax fairly.

“We make a living on the streets because we’re poor. When the GST is introduced, life will be harder.”

Fried chicken vendor Zulkifli Mat Nawi, 39, said he might have to make his portions smaller once the GST starts cutting into his profits. 

“I don’t want to raise my prices, but I might have to make shrink my portions. Before the GST, I might sell you fried chicken livers five to a stick – after, I might have to cut it down to four.”

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