Customs tell businesses: Don't use GST as excuse

I wish to refer to the news report in Malay Mail:
http://www.themalaymailonline.com/malaysia/article/dont-use-gst-as-excuse-to-shutter-customs-tell-businesses

Now that the GST has been in force, we can leave out the pros and cons of having it. But to deny that GST has affected small businesses and even accuse them of using it as an excuse to shut down businesses is rubbing salt to injury.

Just imagine the number of small businesses, especially family-run ones like sundry shops, which were affected by the introduction of GST, and the dilemma they were in: to continue or to shut down, is so real.

To continue would mean a revamp of many years of trading practices, with the introduction of computerized point of sale and accounting. Even with much publicity (though its value in terms of answering questions left much to be desired, simply because of the use of too simplistic examples), government incentives like free seminars, business people are left with the choice of closing down or increase overheads of tens of thousands per year. Computers cost money, so does software that goes with them, plus the extra accounting charges. Of course, it would improve overall management of the business, but to someone who knows next to nothing of such new technology, it causes sleepless nights when pondering over the dilemma, as well as soon after using it.

To some seniors whose children are already into other jobs or professions, GST is like a tipping point to closing down their businesses, with a heavy heart. Who would like to be forced into making such a decision?

GST, as we have experienced since its introduction, has caused an overall increase in prices of goods and services. Never mind the simplistic explanations showing how little the effects of the tax, but everything has gone up. Some unregistered traders and coffee shop stalls have to face angry customers asking for printed bills when their prices were upped because of increases in costs of ingredients, whether they were due to GST or otherwise.

I know of someone who runs a shop trading in electrical goods. He had sleepless nights trying to understand the new software that comes with GST. Having been in the trade for many years, he said that for doing the same business, besides the initial costs of equipment, he now has to pay more than Rm10,000 in extra costs for having the system.

Costs increase across the board, whether because of GST or otherwise. How could the government control prices when the causes are numerous and hard to identify and quantify? Any strict action according to the law will affect only a very small number of unfortunate businesses without really solving the problem. But it would help if the Customs would be more sympathetic than accusing those who closed down their businesses as using GST as an excuse. It was not an excuse but a real problem which forced some to do so.