KUALA LUMPUR, March 26 (Bernama) -- The increase in food prices at Ramadan bazaars is not due to the implementation of the sales and service tax (SST), but rather stems from the high rental cost of the bazaar lots, Prime Minister Datuk Seri Anwar Ibrahim said.

Anwar said the high rental costs are partly due to some traders renting the bazaar lots from agents, who take advantage of the situation, instead of renting directly from the local authorities.

“I acknowledge there is a slight increase in the prices, but I don’t think it’s because of the service tax because according to the Statistics Department's survey, the increase is only around 0.2 per cent, and Ramadan bazaars have no direct relevance to the SST,” he said.

Anwar said this in reply to Datuk Seri Takiyuddin Hassan (PN-Kota Bharu) on the government’s plan the plans to mitigate the hike in food prices and Ramadan bazaar operational costs following the increase in the SST from six to eight per cent.

The prime minister explained that if the government does not implement the SST, it is feared to have negative effects on the economy and national revenue.

-- BERNAMA