No, not necessarily, because the offence of profiteering is by the increment of net profit margin of goods or services offered compared to profit on the base date.

The Regulations of the Price Control and Anti-Profiteering (Mechanism To Determine Unreasonably High Profits for Goods) (Net Profit Margin) 2014.

The Mechanism used is by making it compulsory for traders to maintain the net margin for a certain period of time as set forth in the Regulations.

18 months. Starting from 2nd January 2015 until 30th Jun 2016.

Profiteering occurs when the current net profit margin of 2nd January 2015 to 30th June 2016 (X1) exceeds the base net profit margin (X0) set on 1st January 2015 or on the other dates according to certain circumstances as stipulated in the Regulation of the Price Control and Anti-Profiteering (Mechanism to Determine Unreasonably High Profits for Goods) (Net Profit Margin) 2014.

The date mentioned is 3 months before the enforcement of GST on 1st April 2015. Profit made by that date is believed to be stable until 1st April 2015.

The calculation of the net profit margin for goods and services are based on the elements of sale price, the cost of the goods or services, operational cost, input tax, output tax, as well as return of sales tax as explained and enforced in the Regulation of the Price Control and Anti-Profiteering (Mechanism to Determine Unreasonably High Profits for Goods) (Net Profit Margin) 2014

Yes. Based on the Regulation of the Price Control and Anti Profiteering (Mechanism to Determine Unreasonably High Profits for Goods) (Net Profit Margin) 2014, as long as the net profit margin after 1st April 2015 exceeds the net profit margin on 1st January 2015, it is considered as profiteering.

Basic price used is the last price before the sale takes place.

Basic price that shall be used for new item is the selling price for the first time. If the new item is sold with introductory price, the basic price that shall be used is the normal price of that item after the introductory price.

If a new business is operating after 1st April 2015, the basic price is to be based on the first day of the business operation.

No, it covers all levels of business including importers, manufacturers, wholesalers, distributors and retailers

Basically, KPDN does not stop traders from increasing the price of goods if it is justified. However, traders are asked to offer reasonable price to ease the burden of the consumers.

Yes traders can increase the price provided that the price increment is parallel with the increment of cost. However, the current net margin cannot exceed the net margin profit that has been set forth.

Yes, every levels of businesses whether registered or not will be monitored under the Regulations.

Yes, it is an offense under section 10A of the Price Control and Anti- Profiteering Act 2011. Based on Section 10A, any credit for input tax on output tax shall be withdrawn from the price determination.

In accordance to subsection 53A (2) of the Price Control and AntiProfiteering Act 2011, all business records need to be kept and maintained for seven (7) years from the last date of the records.

Yes, KPDN may take action against the traders. This is because under section 53A of the Price Control and Anti-Profiteering Act 2011, it requires traders to keep and maintain records in relation to their business operations.

For the first offence, a fine not exceeding RM50, 000.00 or imprisonment not exceeding 2 years or both. For the second and subsequent offence, a fine not exceeding RM100, 000.00 or imprisonment not exceeding 5 years or both. This is in line with the penalty provisions in paragraph 57 (b) of the Price Control and AntiProfiteering Act 2011.

The Notice under the Price Control and Anti-Profiteering Acts 2011 is the written notice that directs any people to produce information, document or statements in various forms within the specified period given by the Assistant Controller. This notice is important for investigation purposes of any offences under the Act. Failure to provide notice under section 21 is an offence under the Act and is punishable according to section 57 Act

Yes, they are many. For instance, Consumer Protection Act 1999, the Price Control and Anti-Profiteering Act 2011 and the Control of Supplies Act 1961.

Price Control Order (Price Marking by Retail Sellers) 1993 [P.U. (A) 137/1993] under the Price Control and Anti-Profiteering Act 2011 layout that each goods displayed for sale purposes shall be priced.

On 1st April 2015, the price markers shown must be included with GST. However, exemption period for 14 days (starting 1st April until 14th April 2015) is given to traders for the price markers before and after GST adjusting purposes.

The roles of KPDN is to ensure that traders are not manipulating the price and making unreasonably high profit with the excuse of implementation of the GST.

OPS CATUT is an operation to ensure traders are complying with the reasonable profit taking in line with the Price Control and AntiProfiteering Act 2011.

Yes.

KPDN enforcers will increase the enforcement through monitoring, operation and taking legal action towards traders who committed offences.

The government will review it back once the period ends.

If traders increase the price without any reasonable excuses and only for the sake of taking advantage on the implementation of GST, KPDN will take strict action towards them under the Price Control and Anti-Profiteering Act 2011.

The basis of enforcement action is when there is a price increment for the same goods detailing from the date the base net profit margin is set.

The advocacy measure that has been conducted is by the dissemination of information to consumers and traders in relation to the Price Control and Anti-Profiteering Act 2011.

In determining the price of good and charges for services, traders must ensure price that is charged does not include any element of claimed tax.

Enforcement act taken by KPDN is one of the way to ensure that traders do not profiteering. There is no guarantee that price will drop since the price of a goods depend on various factors.

Any complaint can be made through the Call Centre at 1-800-886- 800 or through eAduan System that can be easily accessible through this link http://eaduan.kpdnhep.gov.my Other than that, complaints can also be made at KPDN headquarters and any branch worldwide.

Submission of the purchasing receipt or any related documents.

Document is needed for it to be the evidence/statement for an investigation. However, verbal complaint will be investigated as well and suitable action will be made afterwards.

KPDN has provided the mobile application (Mobile Apps) known as MyKiraGST. This application allows users to review the prices of goods according to certain areas. If the price exceeds the maximum price, the complaint can be made online. MyKiraGST can also be accessed through this link http://mykiragst.kpdnhep.gov.my .

Consumers can obtain the information on price of goods and services through the sources like User Price Guide that can be downloaded from KPDN website.

1. Any person who supplies or offers to supply any goods or services shall not include the items as specified in the Schedule as part of the price of the goods or charge for the services.
2. Any person who fails to comply with subsection (1) commits an offence and shall, on conviction,
   be liable –
   1. where such person is a body corporate, to a fine not exceeding five hundred thousand ringgit and, for a second or subsequent offence, to affine not exceeding one million ringgit; or
   2. where such person is not a body corporate , to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding there years or to both and, for second or subsequent offence, to a fine not exceeding two hundred and fifty thousand ringgit or imprisonment for a term not exceeding five years or both .

1. The Minister shall prescribe the mechanism to determine that profit is unreasonably high and different types of mechanism may be prescribed to cater for different conditions and circumstances as the Minister deems fit.
   1. The mechanism to determine the unreasonably high profit referred in the subsection (1) is includes the Minister determining a certain period during which there shall be no increase in the net profit margin of any goods or services.
2. In formulating the mechanism under subsection (1), the Minister may take into consideration the following matters:
   1. any tax imposition;
   2. the supplier’s cost;
      1. any cost incurred in the course or furtherance of business
   3. supply and demand conditions;
   4. the conditions and circumstances of geographical or product market; or
   5. any other relevant matters in relation to the prices of goods or charges
      for services.

1. Any person who supplies or offers to supply any goods or services shall keep and maintain proper records relating to the business operation including the following records:
   1. Sales records including receipts and sales books;
   2. Purchases records including invoices from suppliers;
   3. Expenses records including payment records, invoices and
      particulars of acquisitions;
   4. Documents relating to the determination of pricing for the goods or
      services;
   5. Records of remunerations, allowances or wages; and
   6. Tax records and any related documents, if any.
2. The records under subsection (1) shall be—
   1. preserved for a period of seven years from the latest date to which the record relates;
   2. available at all times for examination by the Assistant Controller; and
   3. kept up to date and in good order and condition.
3. Any person who fails to comply with subsection (1) or (2) commits an offence.

1. Any person who commits any offence under Part III or Part IV shall, on conviction, be liable—
   1. where such person is a body corporate, to a fine not exceeding five hundred thousand ringgit and, for a second or subsequent offence, to a fine not exceeding one million ringgit; or
   2. where such person is not a body corporate, to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both and, for a second or subsequent offence, to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding five years or to both.

1. Any person guilty of an offence under this Act for which no penalty is expressly provided shall, on conviction, be liable—
   1. if such person is a body corporate, to a fine not exceeding one hundred thousand ringgit, and for a second or subsequent offence, to a fine not exceeding two hundred and fifty thousand ringgit; or
   2. if such person is not a body corporate, to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding two years or to both, and for a second or subsequent offence, to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.