Sundry shop owner gives up over GST

GEORGE TOWN: A sundry shop owner in Balik Pulau has decided to close shop after 25 years of business as he claims he cannot cope with complying with Goods and Services Tax (GST) procedures.

Lee Soon Seng, 60, said having to learn a new tax regime was very difficult for him at this age and decided to call it quits.

He said having to itemise his stock was also a hassle while explaining the need to impose GST to his customers may affect decade long friendships.

He said he was only making a profit of six percent from items he sold and having to install GST stock taking systems was expensive.

"I have decided to close and plan to rent out the premises to other people for other business," he said in a press conference today with Chief Minister Lim Guan Eng.

Along with Lee, mini market owner Loh Chee Hong, 32, also expressed his reservations about the coming tax regime which takes effect on April 1.

He said he was finding it difficult to explain to his suppliers and customers about GST but would soldier on for the time being.

He said one of the problems small businessmen like him faced was customers who bought things on credit.

"How are we to roll our money, how are they going to roll their money when GST is implemented?" he asked adding that he will see how things go after six months before deciding.

Lim meanwhile urged the federal government to defer implementing broad based consumption tax until high-income nation status was achieved.

He said there should be a delay of between one to two years for businesses and people to get ready for GST.