What enforcement mechanisms are in place to prevent GST profiteering?

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Enforcement Mechanisms Against GST Profiteering

Stern action will be taken against traders found guilty of profiteering under the Goods and Services Tax (GST) regime, with significant penalties prescribed for those who flout the Price Control Act. The government has indicated that the implementation of the GST, scheduled for April 1, will proceed as planned, with authorities focusing on addressing issues and ensuring compliance.
Penalties for Flouting the Price Control Act

Traders found to be engaging in profiteering will face substantial fines. The penalty for such violations of the Price Control Act is stipulated to range between RM1 million and RM2 million. This measure is part of the government's strategy to prevent unjustified price increases following the introduction of the GST.
Education and Lenient Approach in Early Stages

While strict penalties are in place for profiteering, the authorities intend to adopt an educational approach for traders who may experience initial confusion or accidentally overlook certain issues during the early stages of GST implementation. Minister in the Prime Minister’s Department, Datuk Dr Wee Ka Siong, acknowledged that not all traders might adhere fully to the new system immediately, suggesting that leniency would be applied for minor oversights.
Government's Stance on GST Implementation

The government has confirmed that there will be no reversal of the decision to implement the GST from April 1. The relevant authorities are committed to clarifying all pending issues before the implementation date. This firm stance underscores the government's readiness for the GST rollout, with enforcement mechanisms in place to safeguard consumers from unfair pricing practices.

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What enforcement mechanisms are in place to prevent GST profiteering?

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