Sales picked up between 20% and 30% 3 days prior to the implementation of SST, says MD
By FARA AISYAH / Pic By TMR File
Homegrown retail and wholesale company, Mydin Mohamed Holdings Bhd, said sales rose 30% during the last three days of the tax holiday in August 2018 compared to sales recorded on normal days.
Mydin MD Datuk Dr Ameer Ali Mydin (picture) attributed the rise to the consumers’ concern over the price of goods increasing once the Sales and Services Tax (SST) was reimplemented on Sept 1, 2018.
“Sales picked up between 20% and 30% three days prior to the implementation of SST although I’ve been telling people not to panic,” he told reporters at the announcement of the partnership between Mydin and e-wallet app Boost in Petaling Jaya yesterday.
He said even with the implementation of SST, he doesn’t expect the prices of goods to rise in September.
“This is because we retailers carry stocks and there’s the Price Control and Anti-Profiteering Act 2011 — so, we cannot increase the price as we like and we don’t plan to,” said Ameer.
He reminded the public that after September, the prices of goods should not be compared to prices during the tax holiday period, instead it should be compared to the prices of goods during the Goods and Services Tax (GST) period.
Ameer said essential items which were exempted from GST — such as poultry, fruits and vegetables, will remained exempted from SST.
Canned food, which included a 6% GST before, will now be charged 5% SST.
“Ten percent SST is charged on goods like garments and cosmetics, which you don’t buy everyday. As such, has the price gone up by 10%? No. It was 6% during GST and 10% now with SST, so there is a difference of 4%.
“Having said that, does SST affect the price? If you buy at Mydin, then yes — because we don’t have layers, the company is the importer, so we are selling our goods with SST,” he said.
According to Ameer, another reason for the prices of goods to go up is due to the weaker ringgit.
Mydin is now using cashless transactions via the homegrown e-wallet app Boost in all 75 outlets nationwide including its premium store, Sam’s Groceria.
Boost has over three million users to date, along with 35,000 online and offline merchants nationwide.
The app has established a strong presence among favourite local hotspots such as pasar malams, food trucks, major food and beverage outlets and retailers, as well as online shopping platforms.
Ameer said with over 750,000 daily transactions taking place in Mydin outlets, the retailer is glad to offer customers better and more convenient options.