PETALING JAYA: Mydin hypermarkets have pledged to absorb most of the 6% Goods and Services Tax on their products throughout this month, said Mydin managing director Datuk Ameer Ali Mydin.
“This is our responsibility as the largest homegrown local retailer,” he said.
Asked how the retail giant would absorb costs, he said it would use the Government’s refund mechanism to get back a portion of what it has already paid in sales tax for existing stock.
Once this refund is collected, he said, the next step was to get Mydin’s suppliers to absorb another 2% of the cost of the stock.
“I spoke to my suppliers and convinced them to give me a rebate on the price of the goods they supplied to me.
“On my part, I shall [NOT will] also absorb another 2% of the 6% GST.
“This is how we can prevent the price from going up,” he said.
Asked about prices after April, he said negotiations were under way with suppliers.
“Theoretically, things should be cheaper because customers were paying 10% in sales tax but now they will be paying 6% in GST,” he said.
Bernama quoted Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek as saying that more businesses should emulate Mydin’s move.