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Thursday, October 31, 2013

Restaurateur unsure of benefits of GST

Published: Saturday October 26, 2013 MYT 12:00:00 AM 
Updated: Saturday October 26, 2013 MYT 2:59:37 PM

SIBU: A local restaurateur said it was good that the 6% Goods and Services Tax (GST) would be implemented in April 2015 rather than sooner.

Peter Tang of The Cafe Indi at Lorong Lai Chee here also said the rate was much lower than the current one, which is 16%.

“It is good that consumers can save 10% when the GST is fully enforced in April 2015, but with 17 months till then, customers might not be able to save because the raw materials for food might also be subjected to the current rate of taxes,” he toldThe Star.

Still Tang said it was rather too early to tell whether his restaurant would fare better after the GST had been enforced.

“Our business has dropped in the last four to six months even though we have reduced our prices. It was a double blow for us following the 20 sen hike in the petrol prices, and the implementation of the minimum wage.

“Our regular customers dined here once to two times a week before that.

“Now they only come once in two weeks,” he said.

On the extra tax reduction following the implementation of the minimum wage, Tang said that although it was good, it was not helping his company in reducing overhead cost because he had increased the salaries of their workers to comply with the minimum wage requirement.

He said businesses like his was having a bad time as the town lacked tourists and expatriates compared to Kuching, Bintulu and Miri.

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