Not about sales but about shopping



How does the Budget 2009 affect our shopping habits?

I was quite disappointed with the Malaysia Budget 2009 which was announced yesterday. For me, there is nothing to look forward to in this Budget. Unlike previous years when rebates were given for purchase of computers and books, this year there are no such rebates announced.

From a shopping point of view, there may be some good things to look forward to in the Malaysia Budget 2009. Under the Budget 2009, the Government has reduced import duties for consumer durables between 5 and 30 percent and rom 10 and 60 percent. In theory, it would now be a good time to shop for kitchen stuff for the home and kitchen. Such consumer durables include blender, rice cooker, microwave oven and electric kettle.

Practically, I am not sure how this will translate in terms of prices. Also, if you just think about it, just how many of such products are imported these days? Many brands are already made right here in Malaysia to keep the costs and prices low. So, I’m not expecting a wave of household purchases. However, now might be a good time for me to look at that sleek sexy Italian made coffee machine I’ve been eyeing! :)

Another shopping related Budget 2009 goodie is the exemption of Import duty on several food items including vermicelli, biscuits, fruit juices and canned sweet corn. For me, this seems to be quite an eclectic range of food items. A lot of Vermicelli (Mee Hoon) is from Thailand so perhaps we are looking at slightly cheaper prices. However, sweet corn is a strange item to include in the list because it doesn’t seem to be a food item that is widely eaten regularly.

That said, it might be now cheaper to indulge in those Scottish or English Shortbread cookies and Florida Fruit Juices.

Whether these tax reductions and exemptions translate into lower prices for the consumer, in light of the upcoming festivities remains to be seen. Many traders would have stockpiled their stock at old prices and paid their taxes in view of the coming Ramadhan and Hari Raya Puasa so they are not likely to drop their prices any time soon.

So, on paper it all looks attractive, but practically, I’m waiting to see how it will affect the prices in the market and then I’ll tailor my shopping habits accordingly.

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August 30, 2008 | Filed Under General 

comments

One Response to “How does the Budget 2009 affect our shopping habits?”

  1. Monstro on September 1st, 2008

    I agree…where’s my shopping incentives??
    heh…I guess I can look forward to the imported biscuits bit :-)

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