PETALING JAYA, Oct 2 — The Malaysian Muslim Restaurant Owners Association (Presma) has appealed to the Domestic Trade, Cooperatives and Consumerism Ministry to exempt medium-sized eateries from Goods and Services Tax (GST).
Reacting to Customs director-general Datuk Seri Khazali Ahmad’s comment that some businesses were using GST as an excuse to close down, Presma president Noorul Hassan Saul Hammed said although that might be true, his members were still facing GST issues daily.
“We are on the front line, facing customers daily and sometimes, the workers get scolded by them because they are not happy with what we charge them because of GST.
“Some workers don’t want to work because of all the scolding they get, which then adds pressure on the owners,” he told Malay Mail.
He added that although the association was not against the overall implementation of the tax, they felt the pinch after GST was implemented.
“Medium-sized eateries are the ones people can go to anytime for food,” he said.
“Last time, they (consumers) may spend RM10 on food and a drink but now they have to pay extra because of the tax. Spending power has reduced and customers have also reduced.”
With this in mind, Noorul said he was worried more eateries would close down.
“They are struggling now. We may end up with no more eateries,” he said.
“We look at volume, which means when more people eat, more profit. If less people come, the profit margin is reduced.”
MA LAY MAIL ONLINE
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