Ministry gives La Bodega 5 days’ notice to explain

An inspection team of the Domestic Trade, Co-operatives and Consumerism Ministry making checks on an upmarket Bangsar cafe. (KPDNKK Facebook pic)

PETALING JAYA: A cafe in Bangsar, Kuala Lumpur has been given notice by the Domestic Trade, Co-operatives and Consumerism Ministry to explain a complaint of higher prices being charged after zero-rating of GST came into place.

La Bodega was given five days to submit relevant documents to the ministry with a clear explanation about the difference in prices. “A copy of the menu and receipt were seized for review and investigation,” the ministry said in a statement.

An inspection team visited La Bodega at the upmarket Bangsar Shopping Centre yesterday after a photograph was circulated on social media showing two receipts, with one RM7 higher after the Goods and Services Tax was zero-rated.

The team found that the menu had been updated manually, by subtracting 6% from list prices while awaiting a computer system update at the headquarters.

The ministry said in a statement that the cafe management had been told to update their menus to reflect the change in GST.

Zero-rating of GST began yesterday, when the 6% rate was removed pending replacement of the Sales and Services Tax in September.

Yesterday, the Customs department said they had received 20 complaints of profiteering on the first day of zero-rated GST.

Zero GST: Customs get 20 complaints of profiteering

Traders must change price tags to zero GST by June 30