BUTTERWORTH – The Goods and Services Tax (GST) to beÂ implemented on April 1 next year will not affect the jewellery industry although customers are imposed a six per cent tax.
Saw Eng Hock, treasurer of the youth division of the Penang Chinese Heng Woh Goldsmiths Employees Union, said although sales of jewellery are expected to decline 20 per cent to 30 per cent in the first two years of the introduction of the GST, demand for jewellery would stabilise afterwards.
“This is because the public think they will probably have to pay more for jewellery with the six per cent tax imposed through the GST.
“We are confident however that this would be only for a short period (the first two years), after which the country’s jewellery industry will return to normal and the people will get used to it after they really understand what the GST is all about and its benefits to the country and consumers,” he told reporters here today.
He was met after a briefing on the GST for goldsmith associations in Penang by the Royal Malaysian Customs Department.
Saw said over 50 per cent of the 300 members have registered for the GST.
“We believe members who have not registered for the GST still do not understand what it is, and we plan to hold a seminar on Saturday (Sept 21) at the Seberang Jaya Customs complex here to brief them on the GST.
“We want members to register and benefit from the GST implementation, for the good of everyone,” he said. – BERNAMA