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PUTRAJAYA: The prices of fresh produce have dropped significantly after the Goods and Services Tax was zero-rated on June 1, says Agriculture and Agro-based Industry Minister Salahuddin Ayub.
He said it may take some time for prices of other goods and services to be reduced.
However, he said there were already noticeable price reductions in fresh produce, such as vegetables. “Vegetable prices have dropped by 50% while prices of poultry and meat, such as beef, have also been reduced,” he said.
“I was told that you can buy poultry at RM5 or RM6 per kilogramme. Beef can be purchased at RM30 to RM33, but tenderloin (batang pinang) is more expensive,” he said at a Hari Raya open house at the Seri Perdana complex, the official residence of the prime minister.
Salahuddin noted that essential items have dropped 30-50% in price.
When asked if these prices would be maintained even when the Sales and Services Tax takes effect from Sept 1, he said the ministry will create a mechanism to keep these prices low.
“We can do that if we manage the supply and demand of these items well.
“The SST must be implemented well. The ministry will ensure there is competitiveness in the prices of essential goods and control in supply and demand.
“This way, the price of essential items can be kept affordable.”
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