Ministry of Domestic Trade To Check On Profiteering From Service Tax Hike

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price of goods

The Ministry of Ministry of Domestic Trade and Costs of Living (KDPN) is conducting spot checks on traders suspected to engage in profiteering from the recent increase in service tax.

Ops KESAN started on 1 March to ensure that nobody is excessively hiking prices as a result of the service tax being raised to 8%. KDPN also announced that these checks will be conducted on sectors that are not affected by the tax hike (such as the food and beverage sector).

As such, the public is encouraged to cooperate with the KDPN and report any traders suspected of engaging in raising prices to take advantage of the situation.

Traders found to be engaging in profiteering activities will be charged under the Price Control and Anti-Profiteering Act 2011, which carries a maximum penalty of a fine of RM100,000 or three years in prison or both will be imposed for the first offense for individuals. The second and subsequent offenses a fine of RM250,000 or five years in prison or both will be imposed. Organisations will be fined RM500,000 for the first offense while a fine of RM1 million for the second or subsequent offences.

As of 4 March 2024, 1,016 premises have been checked with 24 notices issued.

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