With the GST hike slated to take effect next year, prices of some daily goods and services are expected to rise accordingly.
However, that doesn’t mean merchants should use the GST hike as an excuse to raise prices unreasonably.
On Wednesday (16 Mar), Minister of State (MOS) for Trade and Industry Low Yen Ling announced that she would be chairing a committee to review and investigate feedback on unjustified price increases of essential products and services.
Businesses found to have misrepresented the reasons for their price hikes will face the consequences, such as having their names being made known to the public.
In a Facebook post on Wednesday (16 Mar), Ms Low announced the reconvening of the Committee Against Profiteering (CAP).
She will be chairing the committee, which comprises 13 members from trade and industry associations, consumers associations, and community leaders.
The CAP will review and investigate feedback on unjustified price increases of essential products.
According to Channel NewsAsia (CNA), such products include:
From 1 Apr, members of the public can provide feedback on such unfair practices via CAP’s website.
Alternatively, residents may submit feedback via CAP’s hotline, which will reportedly be available next month, or at community clubs islandwide.
Users will have to provide details such as the specific product involved and the corresponding price increase.
Ms Low promised that the CAP will “make every effort” to look into the feedback it receives.
Errant businesses found unfairly raising prices using the upcoming GST increase as reason may have their names made public.
According to The Straits Times (ST), a childcare centre was reprimanded in 2007 – the last GST hike – for unfairly raising its costs.
The undisclosed centre had reportedly informed parents that they would be raising fees by $10 due to the GST hike that year.
Ms Low also assured that businesses that are “honest and transparent” in their pricing “have nothing to worry (about)”.
The Government understands that businesses and consumers are facing cost pressures due to global inflation. Hence, she stressed that the Government will continue to support businesses as they adapt and transform.
But, business owners are still expected to do their part. She said,
Where there is a need to raise prices, businesses must be able to explain the reasons for the increase.
Apart from the upcoming GST hike, both businesses and consumers are getting understandably anxious about price hikes due to the Ukraine war too.
Although this is the reality we have to adapt to, such reasons shouldn’t be used unfairly for businesses to reap more profits.
With everyone doing their part to keep the economy going, we hope the CAP will effectively deter such errant practices.
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Featured image by MS News.
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