According to Deputy Finance Minister Datuk Ahmad Maslan, the implementation of the goods and service tax (GST) is not an excuse for automotive players to not lower car prices, he told Bernama. He was adamant that prices of cars should drop, as the current 10% sales tax will be replaced by the 6% GST rate.
“It’s a simple calculation to understand, and automotive industry players should not find an excuse not to lower car prices by blaming it on the GST,” he said. The argument made by some that prices will not necessarily come down – as a result of the GST being imposed at every level of the production and distribution chain – were countered by Maslan, who commented that unlike the sales and service tax, this one is eligible for claims.
“Indeed, we expect car prices to fall, but we are not certain of the rate,” Maslan said. According to him, the government has come up with plans to lower the prices of certain goods, so naturally, the prices of cars should take a dive. MAI CEO Madani Sahari had earlier said that simulations made by MAI showed there should be a slight price reduction of between 1% to 3% for most models, including imported cars.
The 6% GST is set to replace the 10% sales tax and 6% service tax (SST) when it comes into implementation from April 1, 2015.
But….but…. foreign exchange rates
From my point of view, Datuk Maslan is trying to pin the blame on the automakers distributors while avoiding the main reason Malaysia has such record high car prices is due to excise duty, and for import cars, import tax, which originating from the government.
Anyhow, until April 2015, claims of prices dropping will be taken with a pinch of salt.
I blame you,
you blame me,
we are blaming everyone but us…
In the end, it’s all business as usual la. For these people 10 = 6. Maths fail la…. *shakes head*
Car excise duty 75% = No.1 Enemy against Rakyat.
Yes. Excise duty is the main reason for high car price. But 6% GST will make car in theory a tiny bit cheaper
Sendiri Cakap Sendiri Syok. When GST comes, everything increased price, Proton also increase price, this Datuk will just diam diam pretend nothing happened at that time.
He is just doing political show only. How can these Datuks get their Mercedes if nothing is increased?
Malaysians never learn from the past.
The government has been dangling this in front of your faces since at least 15 years ago. Nothing changed. What makes you think it is going to be different this time?
@ AVH, you are absolutely right. He just avoiding the main reason – Excise and Import Tax !
screw this gov la
No. Looks like the government has screwed you.
The Govt SCREW U too!! Dont talk shit u think u’re not being screw.
No. Screw the people who voted for them.
They screw all malaysian..
they still blind after being screw by Gov!!!
i still earn from you guys through AP….
U already KO by CCB Ayam team..
Still can untung by AP?
By right the prices should come down. The GST imposed by their suppliers to the car manufacturers can be claimed back. Even if their employees eat at restaurant or stay at hotel and claim to the company as business expenses, they can claim back the GST (unlike the current service tax which is not claimable). The net impact to their costs should be zero.
Example, if a car price is now 110k (net after sales tax) it means the price before 10% sales tax is RM100k. With GST, the final price to the customer is RM106k, a reduction of 4k or 3.6%. However, the problem is car companies never reveal their prices before sales tax. They will take advantage by adding the 6% GST to their current price of RM110k making the new final price RM116k to the customer.
Hopefully with competition in the market, the prices will come down.
NO NO NO NO NO …
Before GST, all raw material from plastic to metal, and sub-Assy to finished goods that to be used to assembly,
—> ALL ARE NOT GST.
After GST implemented, the price should increase by 6% (GST rate).
But the Tax to be revised from 10% to 6% (less 4%)
END UP AS CONCLUDED:-
increase of 6% to minus the reduce of 4%
6% – 4% = 2%
Further more, under rationalisation of subsidy, the fuel price increased by 20% (from 1.90 to 2.30)
Another wave from TNB by increase the rates by 25% since 2014 onwards.
As a conclusion:-
TNB: increase 25% (+ 25%)
Fuel: increase 20% (+ 20%)
GST: increase 2% (+ 2%)
So someone tell me how the vehicle price could be reduce after GST implemented?
Operation Manager. All GST paid for raw material will be claimed back. Even the GST on the Maggie Mee you gave to your worker to eat in the factory can be claimed back. Yap, even the GST on the toilet paper can be claimed back.
That y a total of 6% quoted.
Radio/CD set is finished goods. But to installed in vehicle (another finished goods), can it be claim back? How consumer to claim back?
Operation Manager. If car manufacturer install the Radio set in the car for you, they can claim back the GST they paid. This is because car manufacturer is not the end user.
But if you being the end user buy the Radio set yourself, you can’t claim back the GST paid.
Very simple. You need to tune your understanding of GST, which is a value added tax.
Under Sales Tax, a 100k car will be subject to 10k of taxes. The seller collects 10k from the customer, and pays the gov 10k in revenue.
Under GST, a 100k car will be subject to 6k of taxes. The seller, and everybody else on the supply / service train pays 6%, but thanks to deductions the total tax paid to the gov only receives 6k in total.
Hence, from the government’s perspective, since under Sales tax it receives 10k total, and under GST it receives 6k total, the 4k in savings that the gov no longer receives must go somewhere, either to the customer or to the seller.
Anon. If the car is a lorry for transporting food like chicken, the company can even claim back the RM6000 GST paid. Therefore with GST, food producer will find their cost of production coming down because the same lorry will only cost RM100K under GST whereas before GST, it cost RM100+10K. Only stupid people like some Pakatan politician saying cost of production of everything will go up with GST. Many things will likely go up in price with GST but not everything.
Here is someone who know what he is talking about unlike many who simply shouted “Government telling lies” about car price coming down. Of course politicians tell lies and but they sometimes tell truth also. But many don’t have the brain to work out which is which.
In this particular case, assuming other factors like currency exchange remaining the same and car seller not telling lies, car price should come down. You don’t need a 3 years old telling you 6% is less than 10%.
just a curious question:
we all know that the manufacturers will have their exemption in the end of production. yet, how will consumer redeem their exemption from there on?
e.g.: in every line of production until end product is formed, there’s a 6% increment of pricing. then, every production process will be sure having a price increase. so the end product will have a price increase instead of price drop, as previously not every production in the line have tax. correct me if i’m wrong.
and we are talking about end products and consumers.
the impact on consumer will be very heavy.
now BN pushing the blame to manufacturers for not lowering price. on the first place, if the government is really SINCERE, they would’ve lower the taxes.
Gov thought we just born yesterday?
No, they think you were born last night.
No, they think you have not born yet..
Think you no brand.
Keeping pushing and blaming automotive industry.
Excise duty, import tax must DOWN!!
where was PM’s promise that he will match opposition manifesto to reduce car price by 30%?
dont even see 3% less, except Saga SV. and phased out perodua viva.
I want to say that having a kosong variant doesn’t mean the prices have dropped. They’re merely letting people have another variant which is more affordable at the expense of many features. Real price drop means ALL of the cars (variants and models) have price reductions.
Obviously the government its promise and shows that they are indeed ketuanan rakyat.
Why?
They have reduce the car price, regardless of the variant. Thats their promise “turunkan harga kereta”. What else you need?
A car brings u to point 1 to point 2, thats all that matters. They have reduce it and yet you people are still complaining, langsung tak bersyukur. You want extra comfort, gadgets then expect to pay more, what is so difficult about that?
Dont lie hre and there!
instead of calling me a liar, why dont u back up ur facts
I think I saw in newspaper some car manufacturer offering rebate of RM5000 and even RM10,000. Is that considered price reduction?
Barang Naik, Janji ditepati saja!
But UMW just increased their Corolla Altis 1.8E… so increase in pre GST stage? Oil price increase perhaps…
Is a supply chain 6% tax… you can’t just take 10% -6% = 4% like kindergarden maths.
Why…Why… Why…?
So shud be 4% lower?
We rakyat only tahu complaining & complaining but no action taken, that’s y the current govern just ignore us & do whatever they want. We must show them who is the boss & change them in next election…
We know what to do. Every vote counts including u & me. Becareful not to be caught under Sedition Act.
Sedition act is to catch hardcore criminals. Please learn your laws and regulations.
Otak udang, katak bawah tempurung.. pick one as it suit you nice.
Tell me, who was caught for fb posting on monkey, who got caught for using selipar on poster, etc. So these were your so called ‘hardcore criminal’?
What did he post monkey in fb everyday or the elderly man use selipar on poster everyday that you called them hardcore?
Then why no action on Perkasa & friend?
they will be eventually be one, if they behave badly… u can sedition perkasa since they are a orgnisation and not a person, and friend is a general term, who exactly are you trying to jail?
looks like u r the katak, a worse one than Ibrahim Ali
really amazing statement
lower car price or resign
thx
Come on lah guys , why does Everyone still think cars will get cheaper , this story has been repeated since merdeka
car price has been cheaper, what more do you want? give out the cars for free? maybe you can try that in Kia and Hyundai showrooms but not in reputable brands like Proton or Perodua
Cheaper? U just came out from kampung? which kampung? Demo date dari kapong mano? Kampung mentality. LOL… Well, we city dwellers have never experience the reduce of car price. Perhaps in your dream?
looks like u r from d kpg, tak pernah baca surat khabar ke? tgk la sendiri harge kereta dah turun mendadak
http://3.bp.blogspot.com/-55imOd8VS1E/UbTbAxyCHQI/AAAAAAAAb1g/4qmTP3-T6ys/s640/turun+harga+kereta.jpg
u ibarat katak bawah tempurung hihihi
just add few accessories, car maker will have good reason to increase the price or remain the same.
Lower car price is one of famous folklore in Malaysia…
why the one-sided bias? the current government is hopeless, true, but how can one ignore the derogatory state of malaysian business ethos? for sure the government is not sincere in their efforts to reduce car prices, at the same time the car manufacturer’s will squeeze as much profit as they can…(refer carmaker and crap UMW comments above) putting the blame solely on the government is naive, just like expecting everything to be all rosy when you do change government is pure wishful thinking. a lot of fundamental flaws in the way we malaysians do things. go figure.
Before election, someone promised car price will drop up to 30%. Why so many excuses now? Want to play back the speech recording?
hello, its been done in phases.. you can see the prices have been dropped, and it will continue be reduce over time
you want to reduce 30% instantaneously? the second hard car market will suffer, grey import market will suffer, and do you know how many entrepreneurs will suffer if the government does that? how many livelihood is at stake if they were to reduce 30% immediately.
theres a reason why u r sitting behind ur computer spouting unreasonable demands while the government is governing clean and transparently for a sustainable economy for malaysia
How many Millions of Malaysians need to pay high prices to protect these few “entrepreneurs”.
And by the way, getting free AP and selling them for a hugh sum of money is not a business, its profiteering. Getting somethign for free and selling for profit is not an entrepreneur.
So what if car price drop 30%
Suppose my old 5 year old car is worth 20K now, so I loose 30% as you claim. So total I would have to sell at 14K. I loose 6K.
But I buy a new Proton at 60K, at 30% drop, near as makes no difference, I end up paying 40K, a 20K saving. So as you claim, I am still 14K ON TOP.
Bring it ON!
The government is governing clean and transparently for a sustainable economy for Malaysia…..LOL!
Sorry..
Aku Barang Naik Janji Ditepati sahaja.
No need to hold breath. Gomen will not derail the money train.
To the person who promised to reduce car prices
gradually:
Tell a lie once and all your truths become Questionable.
I dont mind to tell u lies to buy dozen or containers of Hermes for my darling.
This minister Ahmad Maslan never made it beyond Standard One mathematics. How can by adding tax you reduce the price? He simply mixed up the math operative symbols. No wonder our country economy is in jitters due to calibre people like him in the higher pedestal.
What this minister is saying is about logic. What he say is
Current
Car Price + 10%
After GST
Car Price + 6%
But in real life, it’s depend on the business entity itself to lower the price.
Import Duty(about 30%)+Excise Duty(75%)+Sales Tax(10%)
RM50k + 115% Duty = RM107.5k
3% GST savings from RM50k value car is only RM1.5k
Sales man gives RM3k discount is way better than GST discount.
Give me back the RM57k!! I’ll give you back RM500 for you to go fly kite.
Agree with AVH’s comment about govt creating distraction
Gusto. From your own calculation, car price down by 4%. Of course with or without GST, salesman still give you discount.
Belum cuba belum tahu bro.
How come you can be sure of that?
One thing for sure, the recent gov always kencing all of us.
latok mazlan, latok syed hafiz says while launching kia rawang 4s that car prices may not be necessary cheaper with the 6 posent gst….so who to belip then? or all konmen tarak bole caya punya semua.
and end of the day when 6 posen gst gets implemented, the statement i.e. it sounds like me, looks like me, but its not me who say that will come out? huh?
all talkcock, abolish the tax first only
Thts why MAA tokok. Cos they want buyers to continue buying instead of waiting till April 2015 for GST to kick in. What an idiot.
When there were demand to reduce excise tax to reduce car prices, the government told the public that tax is not the only element to determine car price. Now, when the GS-Tax seems to be lesser than S-Tax though having different base for calculation; all of the sudden .. the mood swing now that TAX is the element to determine car price. Talk about consistency …
Eh Datuk Maslan.. Finally U speaking some sense. I have seen and read in FB about comment u usually made in parliament.. Really bangang. wanted to slap the Maslan out of u. But today. its ok, U hav my like for the first time.
then you are one of the idiot for believing in him.
what claim?
you think those claim who’s gonna pay in the end?
YOU LA BANGANG!
Ahmad Maslan ingat orang Pontian masih bodoh dan dungu ker berkenaan harga kereta dan gst?
Moron get hurt, complaining 47% Idiot and 53% genius.
Better welfare, justice, incentive wont drop from sky.
It’s similar to your job, business. Strive it and get it. PKR might not the best choice.
But obviously, its better than Ayam and Hippo team.
Excise Duty, Import tax, AP, all replaced by GST!
Malaysia tax for excise duty, import tax so many years.
How many trillion gained? Where G use those money?
Last time said, car duty and tax for petrol/diesel subsidy.
Now, almost no subsidy at all on petrol.
and All sales are required to add GST.
How you use the money?!
Feed u, u suck me.wtf
The only way we can beat government is by not buying new cars UNLESS really necessary.
Drive current car until it cannot move anymore.
After overseeing overall cost structure to make a car after GST impementation, i can assure you guys car price will increase. For new develop car even worse, GST already implement starting from R&D level. Unless you dont want ABS,EBD,ESC,airbag,radio, sport rim, aircond, then you can have a much cheaper car. I’m in OEM car industry, i make car. my info is legit.
Don’t talk nonsense. Every GST paid during R&D and manufacturing can be claimed back. Yes, even the GST on the toilet paper you use in the factory can be claimed back. Only the GST paid by consumer can’t be claimed back.
Why so many people here back-up the manufacturer? Too many car seller inside paultan, ka? By right as consumer we should happy to hear this news. I don’t care how they do it. As far as i’m concerned the car price must go down.
Because Maslan doesn’t talk sense.
The G wants to collect more taxes but expect prices to go down at the expenses of Manufacturer’s profit? CAN! I CUT YOUR SPECS LO. LIKE TOYOTA UMW.
For a start why not the G collects less excise duties/import duties?
And he’s definitely changing topic and pushing the blame to auto makers. Rafizi was talking about car prices should go down because crude oil price has gone down and we are subsidizing the G now essentially.
Let the blame game begins! Apparently here in MY, our ministers are damn good at this game!!!
Remember, every CBU car (example at rm110K pricing) purchased by a Malaysian, the car owner must paid at least min. RM45,000 as an AP taxes. The Manufacturer only get RM65,000 for each unit sold to the Malaysian. So, Do you think they want to drop this easy money after so many years? NO WAY, MAN! NO WAY…
I’m in the OEM part making industry for cars. Do you all know that Parts manufactured to OEM are Sales Tax exempted ? So the GST basically adds 6% to the cost, while even some Raw materials are Sales Tax exempted. R&D was tax-free, now need GST.
Furthermore, with GST & the claim process, this means additional work, which might increase certain costs of certain departments.
Add in, Petrol increase, Electricity increase, hence cost of doing business will increase (not only automotive).
There’s a lot of work needed to trace & claim back GST. Prices of NOT only cars, but lots of products will go up.
OEM Part. Are you referring to exported car parts or parts for use by Proton etc?
What the fish!! My auto company maaa. What should I lowered down the price just because of GST implementation. Better I grab the extra profit for my company. Shhh!!!
really fu@ked up la……
GST, main issue driver who have Pay before the due date April still have not got their cab due to GST can the Dept clear to EON PROTON EDAR about this issue pls