Why might price tags differ from final receipt prices?

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Price Tag Discrepancies Explained by Transition Period for GST Zero-Rating

Price tags may initially differ from final receipt prices due to a transitional period required for traders, particularly hypermarkets, to update their pricing information following the implementation of a zero per cent Goods and Services Tax (GST) rate. While the new GST rate takes effect on June 1, some retailers have requested an extended timeframe to physically change all price tags, leading to a potential temporary mismatch between displayed prices and the final amount charged on receipts.
Retailers' Need for Extended Price Tag Updates

Representatives from traders' associations have indicated to the Ministry of Domestic Trade, Cooperatives and Consumerism that they require additional time to update price tags across their outlets. This is especially relevant for larger establishments like hypermarkets, where a vast number of items necessitate price adjustments. The ministry acknowledges this request, with discussions ongoing regarding a definitive period for these updates, though associations have suggested a window of two to three months.
Ministry's Enforcement and Consumer Guidance

The ministry is actively monitoring the situation and has mobilised staff nationwide since the previous week to collect price data. This proactive measure aims to compare pre-June 1 prices, which included a six per cent GST, with the expected post-June 1 prices reflecting zero per cent GST. Consumers are strongly advised to scrutinise their receipts at the point of purchase. If an item was previously priced at RM100, the receipt on or after June 1 should reflect a price of RM94, with no GST applied.
Actions Against Non-Compliance

Errant traders who fail to adhere to the zero per cent GST regulation will face punitive measures. Enforcement actions will be carried out under the Enforcement of Price Control and Anti-Profiteering Act 1999 and the Trade Descriptions Act 2011. The ministry is collaborating with the Royal Malaysian Customs Department (JKDM) to ensure widespread compliance across the market. Consumers encountering receipts that still show a six per cent GST are encouraged to report these instances.
Reporting Channels for Consumer Concerns

Consumers can lodge complaints regarding non-compliance with the zero per cent GST through various channels provided by the Ministry of Domestic Trade, Cooperatives and Consumerism. These include the 1Malaysia One Call Centre (1MOCC) at 03-80008000, the Information and Strategic Operations Movement Centre (PIGOS) toll-free line at 03-88826088/6245, the Ez ADU smartphone application, or via email to aduan@kpdnkk.gov.my. These mechanisms are in place to facilitate consumer feedback and ensure the smooth transition to the new tax structure.

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Why might price tags differ from final receipt prices?

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