We’re now only a couple of weeks away from the April 1 implementation of the Goods and Services Tax (GST) in Malaysia. Much has been said, rumoured and conjectured since the new tax regime was announced in Budget 2014, particularly with regards to the car industry and the all-important, hotly-debated question: Will car prices go up or down with GST?
Since the 6% GST will supersede the existing 10% sales tax imposed on new vehicles, it’s easy to assume that car prices will drop by 4%. Simple enough equation, but as we’ve found out, that will not be case.
“Generally, I would expect a slight drop for new cars between 1-3%,” said Royal Malaysian Customs Department GST director Datuk Subromaniam Tholasy. Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad, however, isn’t quite so optimistic. “I do know some brands, prices will go up. Not everybody comes down,” she told paultan.org.
Apart from car prices, we also discussed the impact GST will have on other corners of the industry, including used vehicles, pre-registered cars, company-registered cars, servicing and parts. What will, and what won’t change? Clearly, the answers aren’t as straightforward as we may think…
GST replaces sales tax: the mechanism
At present, all new cars are subject to a 10% sales tax. This tax is imposed on the car’s Government Approved Selling Price – that is, the car’s open market value (if CKD) or Cost, Insurance and Freight (if CBU) price, plus associated import and excise duties. It is paid only once at manufacturer (if CKD) or importer (if CBU) level, before the car is sold to the distributor. Thereafter, the car may be sold to a dealer who sells it to the consumer, with no further taxes incurred.
Come April 1, this sales tax regime will be abolished, and a GST of 6% will take its place. In its simplest form, GST is a value-added tax, that is, a tax paid on the value added to a product or service. It is applied at each stage of the business transaction, through distribution, retail and finally to the consumer.
It is important to note that it won’t be a 6% GST added on top of each and every business transaction, thereby increasing the price of the car at an exponential rate. GST is indeed imposed on the selling price, margins included, each time the car changes hands down the supply chain, but at each stage except for the final consumer, input tax can be claimed. In the end, it is the consumer who pays the full GST rate.
The basic mechanism is this: say a distributor buys a car from a manufacturer. The distributor pays the manufacturer the price of the car, plus 6% GST. The distributor then sells the car to a dealer for a higher price to account for margins, and charges the dealer 6% GST on top of that.
In filing his tax returns, the distributor will declare his output tax (6% paid by the dealer, bigger amount) and input tax (6% he paid previously, smaller amount). He then pays the difference between the two to the government.
The dealer repeats the process in selling the car to the consumer. The consumer cannot claim any input tax, so he bears the full GST burden, as stated earlier: 6% of the final purchase price. Essentially, each part of the net tax paid in the chain should add up to the 6% paid by the consumer.
How will new car prices be affected?
Subromaniam believes that given ceteris paribus – all else staying the same – the GST system should result in savings for traders, and he urges them to pass these savings down to the consumer. “Based on our computations, there will be some savings, but they will not translate to a complete 4% (10% sales tax – 6% GST). Generally, I would expect a slight drop for new cars between 1-3%, depending on whether it is an imported or locally-assembled model,” he said.
“There is a possibility that for some models there may not be any reduction or we could even see a slight increase in prices, especially for imported cars. Because it depends on the distribution margin, which is currently (under the sales tax regime) not taxed.”
The premise behind all this is such – GST is a value-added tax, which means it is a tax on distribution margins. The higher the distribution margins, the more in GST needs to be paid and ultimately, the more expensive the car becomes for the consumer.
But Aishah has slightly different sentiments. She pointed out that GST will be imposed on the final selling price of a car, including handling/inspection fees and accessories, but without road tax (which is not subject to GST). Therefore, the tax will be on a higher base than before.
“Some companies will have a slight reduction, some companies will have a slight increase in price, based on their margins and costs. To say that CBU will not enjoy as much (savings) as CKD is not true. I do know some brands, prices will go up. Not everybody comes down,” she said.
The basis behind this uncertainty concerns current unsold stock for which sales tax has already been paid – what will happen when GST is implemented on April 1? We’ll refer to this as “interim stock,” and this leads us to the next chapter of the story.
Pre-GST and post-GST stock – will “interim stock” be double-taxed?
For stock currently stored in a bonded warehouse that is yet to clear Customs, no taxes have yet been paid. As such, when it is taken out on April 1 it will be subject to a 6% GST instead of a 10% sales tax – no complications there.
“Here, we will definitely see a reduction if the cars are kept in a bonded warehouse. So even for CBU cars, there could be a reduction, depending on how the business is structured,” Subromaniam said.
But what about unsold stock that is already clear of Customs, for which sales tax has already been paid? Will double-taxation occur come GST? Yes and no – under a Special Refund scheme, the sales tax paid will be fully refunded provided the stock is held on hand as of March 31, documented proof of sales tax payment can be shown and the stock was obtained from a “licensed manufacturer.”
A licensed manufacturer is an assembly plant, Aishah explained, so this would mean CKD cars. In the case of CBU vehicles, the full amount of sales tax will be refunded to importers only if they hold the stock – if the stock has been passed on to a distributor then there will be no full sales tax refund.
Instead, they will be refunded a portion of it – specifically 2% (20% of 10%) of the value of the car at its current position. The same goes for distributors that have passed on their stock to dealers. This means the stock is effectively double-taxed.
“Assuming when the car was imported it cost RM100,000. 10% sales tax is RM10,000. But they may have sold the car to the next person, so the distributor may be holding it, after two levels, and the purchase price is probably now RM200,000. So Customs will refund the tax on 20% of RM200,000, which is RM40,000. 10% of that is 4,000, compared to the actual sales tax paid which was 10,000,” said Subromaniam.
“Legally we cannot give you (back) sales tax of 10% – even this, in Malaysia, is a concession. Most countries don’t even give (back) sales tax when they move to a new tax system,” he claimed, adding that the stock on hand is a small number compared to the total industry volume (TIV).
“Yes, we know there is a bit of embedded tax in it, but what we are saying is please try to average it out over the year. It’s going to be negligible.”
The MAA had previously asked the government for a full sales tax refund for affected car companies, but the answer was no, Aishah said. So with regards to those ineligible for full refunds, how will their “interim stock” be priced?
“It depends on whether the company can absorb the increase and is willing to pass it on to the consumer. Some companies may say look, this is a one-off thing, we will not pass it on,” said Aishah, adding that the refunds issue also involves spare parts – not everyone will get their full 10% back. Anyway, the refunds won’t be speedy – they will be given in eight equal installments over a period of two years!
Given the situation, car companies are expected to keep their stock in bonded warehouses and only let them out after April 1, while distributors will try not to shift cars to dealers unless there are ready customers, so the dealers will not be burdened by holding too much stock. There have also been cases of distributors buying back stock from dealers for this period.
Ultimately, the goal is to clear all the “interim stock” before new stock comes in. Whether the “interim stock” – double-taxed though they may be – will be priced differently from post-GST stock, depends on the company.
It has also been said that the implementation of GST could result in cash flow problems for traders as they have to pay the tax up front, and smaller dealers may feel the pinch a bit more.
The effect of forex rates on car prices
There is also the element of foreign exchange rates to consider in defining car prices, something that Subromaniam already intimated at in October last year.
Then, he had iterated that foreign exchange rates pose as the main factor in defining pricing. “We must always remember, the biggest cost for cars are not the tax components, i.e., GST, it is the foreign exchange rate.” This sentiment is also shared by Aishah.
The continued rise of the US Dollar in recent months (in mid-September 2014, RM3.22, and now, at press time, RM3.70 to the Dollar) means that a product priced as it was six months ago is now around 15% more expensive in its base form. Many companies use the US Dollar as trading currency, including Japanese automakers, even for ASEAN intra-network purchases.
If car prices go up or down, it may not be completely attributable to GST given that there are larger components that define pricing. It is also worth noting that excise duty rates can be anywhere from 65% to 105% and constitute the largest chunk of a car’s price. Higher exchange rates would therefore translate to a bigger amount of excise duties paid, which would significantly increase a car’s price. This is also applicable to auto parts.
Used cars – the Margin Scheme
Currently, no sales tax is paid on used cars (because the cars have been previously taxed). Come April 1, GST will not be imposed on the sale of a used car from one individual to another, nor on the sale of a used car from an individual to a dealer.
However, when the dealer sells a used car to an individual, the dealer has to pay the government 6% GST on the margin made. This is referred to as the Margin Scheme. It is one of the few exceptions where the amount of GST payable is not specified – for the individual, GST will be inclusive of the price he pays.
Here’s how it works. Say a dealer buys a used car from an individual at RM40,000. The individual cannot charge GST. The dealer then sells it on to another individual for RM60,000. He makes RM20,000 out of the sale, and this is subject to 6% GST, so he needs to pay RM1,200 to the government. This cuts his effective margin down to RM18,800, but the buyer will not be aware of the numbers within the sale.
Clearly, if the dealer wants to retain his profits as before, he will have to increase his prices to compensate, but there’s competition to think about – some other dealers may be able to comfortably absorb the GST component. Whether used car prices really go up or not on April 1 is anyone’s guess – market forces may yet prevail.
Pre-registered cars
Pre-registered cars are cars that have been ‘bought’ and registered by brand dealers, usually for the purposes of boosting sales numbers. For the consumer this can mean big savings, as he is essentially buying a used car that may not have been used all that much.
Still, they are considered used cars, so the same Margin Scheme should apply – the brand dealer buys and registers a car (for less than the retail price, of course). The book value of the car drops. When the consumer buys the car, GST should be inclusive of the price he pays, and the dealer will pay the government 6% GST on the margin made.
Company-registered cars – blocked input tax
If a company buys a car for private use (to be used by the director, for instance), the company pays GST on the purchase of the car, but the GST paid may not be claimed as input tax. When the company sells the car, the company may not charge the buyer GST. It’s the same rule as applied to individuals when they buy and sell a car.
Input tax can be claimed on the purchase of licensed public service, tourism, commercial, rental and driving school vehicles. This is the general rule – only when a car is acquired and used wholly for business purposes can input tax be claimed. Input tax cannot be claimed on the purchase of goods for private use. In such a case, a company-registered vehicle sold on later does not incur GST.
Accessories, spare parts and servicing
Accessories and spare parts are subject to the same tax structure as cars. Import (if applicable) and sales taxes are also imposed on them at the first level, although the excise duties paid are much less (or even zero for certain components). As such, stock brought in on or after April 1 will be subject to a 6% GST instead of a 10% sales tax.
But for existing stock that has already had its sales tax applied and doesn’t meet the conditions for a full refund, the “interim stock” problem faced by cars is mirrored here. Trouble is, the volume of spare parts is much larger than that of cars, so exhausting the double-taxed stock is going to take a significant amount of time. Somehow, this needs to be factored into the costs – there’s a possibility that parts prices may not come down in the immediate term.
With regards to servicing, maintenance and repairs, the 6% service charge will be replaced by the 6% GST come April 1 – all else remaining equal, there should be no change there.
Running costs
As has already been reported, RON 95 petrol and diesel will not incur GST, nor will toll charges, driving licence renewal and road tax. Motor insurance, meanwhile, will be subject to a 6% GST.
GST/VAT in other countries
Malaysia’s GST introduction will make it the eighth ASEAN country to implement the value-added tax structure – only Myanmar and Brunei remain as member countries that have not done so. How does Malaysia’s 6% rate stack up against neighbouring countries, and elsewhere?
Indonesia was the first ASEAN nation to introduce GST, doing so in 1984, and its initial 10% rate has remained in place until today. Thailand followed suit in 1992, with a starting rate of 10%, which has since been reduced to 7%. Singapore began its GST scheme a year later, with an initial rate of 3% (now, 7%). The Philippines currently has the highest GST rate in ASEAN, at 12%.
In all, 160 countries around the globe have implemented GST (or VAT, as it is also known by). The GST/VAT rate can vary globally – for example, Australia has a 10% rate, while Germany has a VAT rate of 19%, and the UK, 20%.
Regardless of living costs (which of course differs from country to country), the 6% rate is among the lowest in the world. Still, this rate can be considered a starting point, and it is early days yet – there is always the possibility that the rate will increase in the future.
Conclusion
There is no doubt that the implementation of GST will have a significant effect on the Malaysian automotive landscape, with particular emphasis on the market and its economics. Each carmaker works on different business models, different distribution margins, different principal requirements – the disparities are endless – so the issue of whether car prices will go up or down come April 1 is certainly not clear cut.
Regardless of how the effect of GST will be, it remains a small component of the contributors to Malaysia’s car prices; dwarfed by excise duties and foreign exchange rates. And if prices do go up (or down), it may not always be a direct result of GST. Of course, there will be teething issues, but once the difficult transitionary period blows over, the market is expected to adjust and normalise. We can only hope we get there sooner rather than later.
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So which one? Naik ka turun??
Theoretically, CKD cars will have a higher impact. Example Toyota with shah ALAM assembled Vios.
Battery and absorbers are among things sourced locally. As are seats, seatbelts and airbags, body panels, maybe windscreen. They are subjected to GST, I think in Tier 1 or 2. This will jacked up basic cost price of the car.
While CBU cars come in using docket price. CIF then plus marked up profit margin, then only all are taxed by GST.
Supposedly some will go up, some down.
1. CKD cars go up.
2. CBU cars go up, since the import tax and duty excise will be included in GST (double tax?)
3. ASEAN CKD maybe will go down.
Parts are unlikely sourced from Malaysia. And they are not subjected to import tax either.
No that is wrong. You don’t understand how gst works. The end cost is bear only by customer. All the gst collected at the production stage, they get to KEEP and NOT pay back to government because it’s claimed against their earlier paid gst.
All I understand are as long as transportation involved there will be GST 6%.
So everything are involved with transportation Foods and Goods Too.
Everything damn things go up and even more expensive?
Answer to your last question is a definitive “YES”. We all know why Ah Jib mati-mati also want to implement GST and TDM keep giving warning about the effect of GST on B.N. Gomen.
you need to read again what i wrote, if u cant understand that – i am sorry for you because you are wrong.
You mean prior to GST 6%, there is no tax on locally-sourced components and parts for CKD? You must be kidding, right??
Yes and no.
GST would have an inpact on cash flow to any business entity. Financing cost will eventually end up passed down to consumers as well.
Aishah and Subramaniam, don’t just wait for your Tan Sri ship, please ask your boss Najib, where is the 30% car price reduction Najib promised.
This is far more savings that 1 to 2 % GST for the consumer.
Hello tambi Subromaniam, your boss just threw berak on your face by saying car prices will go down by 2% to 3%
Aishah and Tholasy can talk big here. But what is most important is why they are not asking Najib to honour his promise to reduce car prices?
Before the election, Najib promised the rakyat that if we voted for BN, he would reduce car prices by 30%. He assured and promised every single rakyat that we could trust BN in keeping their promises and BN NEVER mungkir janji.
Now, 2 years have passed. Car prices have gone up actually. VW for example increased all their car prices by up to RM10k.
So, Aishah and Tholasy, why are you both not asking Najib and the BN Government you both work for, to honour their promise to the rakyat.
Just like the NAP, here, you still try to play the blur game. Say that you both are unsure whether car prices will go up or down. Both of you are talking as if you are just normal workers in the Government department.
But both of you are the directors of your respective departments. You should, with certainty, tell if it going up or down. MITI should just instruct all companies to abide by MITI regulations, after all, MITI controls all car companies and all car companies are ultimately GLC and they should abide by their masters ie the Government.
Anyway, getting back to Najib’s promise, it is high time MAA and MITI ask Najib to honour his promise to the rakyat of reducing car prices by up to 30%. Already we Malaysians are overpaying our cars by 3x the value of the car. for example, a 10 airbag Toyota Camry 2.5 in the US is US$22,000. Here, we pay RM180,000 for a 2 airbag Toyota Camry.
May be Ah Jib promised only P1 and P2 car prices to come down and not other marques. You see P1 are giving generous discount now and P2 can’t cope with the cheapo Axia production.
Congrate to them.play safely..
Because business don’t pay tax properly and these business man love car so trap them to pay tax at car. Before GST tax pay at Factory let For Processed food or drink such as tea , the price we pay included 10% tax. But the manufacture did not declare their production output properly so with GST the tax pay at retailer with rate of 6 % that mean 4 % lower ant the price should be lower no more tax at factory but tax at retailer which can’t cheat anymore.
Yes, what has happened to the election promises?
What bullshit. Gomen talks as if they got no control over the prices because of GST.
Gomen got control over tax. You are taxing our cars so much. If GST pushes the prices up, you should abolish the high tax on cars.
It is your own people that suffer. Orang Kampung is the ones suffering most with high car prices. In bandar also, see who are the ones suffering the most with high car prices. And yet they vote BN
Hai. Thanks for ur info..i want to get a confirm information from you. If i wan to buy a Malaysia’s car. Then it will be cheaper before or after 1.April.2015?Thanks.
Harga kereta nak turun? In your dreams, bros…
GST is something unavoidable already. Vehicles are something that most people should be wise in purchase. As I said, one of the most important things is: please do not allow increase in prices of basic transports, which include fares and Saga/Axia (the basic models). Real commercial vehicles like single-cab pickup can be duty-free but not the domestic use ones including double-cabs.
One more important issue that, if implemented, will greatly affect vast majority is health/medical cost. Now we probably can still bring our children to see child specialist and yet pay something below RM100
GST is something unavoidable already. Vehicles are something that most people should be wise in purchase. As I said, one of the most important things is: please do not allow increase in prices of basic transports, which include public transport fares and Saga/Axia (the basic models). Real commercial vehicles like single-cab pickup can be duty-free but not the domestic use ones including double-cabs.
Another important issue that will greatly affect vast majority is health/medical cost and it is unavoidable expenses. Now we probably can still bring our children to see child specialist private clinic and yet pay, on average, something below RM100 with medicines included, and without having to visit a pharmacy. In future, we have to pay much higher than this for 1) consultation fee 2) more pricey medicines (pharmacy will not throw price anymore) 3) additional transportation fee (the fuel and time spent). The higher medical bills/insurance premiums paid by companies or corporates are to be translated into increase in prices of services and goods.
If one day, no more free RM1 medical care from government, who will be affected the most? It is the orang kampung who are self-employed, nobody is paying your medical insurance. So, you have to pay RM35-RM160 consultation + RM30-RM300 medicines, and if you are warded, good luck.
Don’t misunderstood, I have no objections to GST and most government policies except agama and pendidikan, which UMNO really don’t have to do (let others learn their own languages like English, Chinese, Tamil, will not retard the progress of the nation; if you yourself do not menghasut for your own agenda, rakyats live peacefully without conflicts. Nobody ever or will stop you from helping the poor espcially the orang-orang kampung.).
It is okay for me to pay RM150 for ordinary cough and cold and RM2k for specialist visit each time, but how many of you in Malaysia can afford half of this kind of bill every time you are sick.
Are we ready for GST (even if, for the sake of rakyat, you decrease the GST to 1% next year 2016, no businessmen will decrease their prices)? Are we ready for higher medical costs? Don’t blindly follow USA, wanting to go to Mars, and don’t just think of your pockets/seats/friends(kawan-punya-medical-insurancecompany-with-compulsory-premium-dictated-by-Orang-Besar-to-be-paid-by-employerss), ignoring your rakyats.
When we are really ready for it, we should go. Make progress appropriately timely.
If GST tax imposed on excise duty, it is double tax! Clearly illegal, unfair and haram!
Then BN must come down, easy as that…
are you TDM?
Then what, the Pakatan people can take over? They are a bunch of clown themselves.
Pls bend over yourself 2 Najib & Cronies 4 a good time!
The GST % shown on above table is misleading.
Actually, for example, singapore start GST from 3% and gradually up to 7 % within 10 years time.
Dont forget, Singapore is a zero import tax free trade country.
Their 7 % GST is logic and fair.
Lets see, in boleh land, import tax la, excise duty la, etc on anything. The import tax could be 10- 300%.
Now add additional GST! It’s not fair tax system.
G is wasting money on their own interest and using this GST to recover the lost!
Mestila NAIK, tarak naik kalu apa macam mau main, lembik tarak guna liou.
Placing the tax percentage before or after a basic and after packing have a lot of difference. It could be several time more than before. We all learn thus common sense calculation or unless you are “But a Angka”! I had noticed it. Are you all still sleeping? Learn the lesson from Japan. The hard way that now it cost about rm9 per cup of coffee there. Vote for BN again and you will have more sleepless nightmares!
key word is double.
Our coffee here costs Rm12 here.
So we are better than them?
30% price reduction promise again?
but any simple job in japan you can earn RM10k equivalant. Earn 10K
will you get rid of the dreaded import duty for good??? Please do so
Thats the million dollar question isn’t it??
It’ll be nice for GST to replace all taxes but I’d have to be dreaming for that to happen…
Car price going to drop?? HA..HE…HA..HA…HU….HE…….HA
and i thought my jokes are bad..
Yea, continue dream la Malaysian..
Don’t dreams la…
We’ve been enough suffering
The extortionate 75% car excise must be abolished and replaced by 6% GST!
Final car price = Factory price + 6% GST + Insurance.
Pls stop killing own rakyat!
don’t forget to +6% for the insurance lol
After discussed with the GST Director, he’s rather consistent with 1-3% reduction as well as the foreign exchange element in deciding car price. Aishah, generally not shared the similar sentiment.
This rather puzzled me since ¥ drop significantly and/if the trade used US $ still significant change in ¥ compared to RM must translated into cheaper imported cars.
Remember when ¥ increase few years back rather significant, generally it pushed the car’s prices further. If the same couldn’t be said (when the ¥ lower) THEN Malaysia is unfair state and never think of rakyat welfare.
Generally she the kind of Ministers that will blame on Rakyat for sudden increase price.
But for their case to increase price are acceptable.
This as their means “Cronies Right”?
Just wait 2 weeks after April 1.
What is up,usually takes a dictator like Saddam Hussein to bring it down.
Price of petrol was slashed to Rm 1.7/litre,remember?Transport costs have been reduced.
Did the roti chanai,milo,kopi o and other daily consumer items come down?
Car distributors will blame it on our falling ringgit versus the strong dollar.Like super high pricing giant,UMW..they will maintain high pricing without blinking an eye.
Datuk Aishah,a PNB macai…is speaking the truth,this time.
Most used cars dealers are worried sick,if prices do come down,but consumers can rejoice slightly.
If used car dealers refuse to take in used cars, then how can the existing car owners trade in their cars for another new car?
Another problem is, if we buy a car from our friends instead of used car dealers, kena GST or not?
If used car prices are down ,they will still take in your car,but at a lower price.
Its just a game of Maths.
Remember,used car dealers have another trick.
The “football,JPJ,Puspakom<Runner fees" can range from Rm 500-2000.They can charge you a socalled "affordable price" but can charge you rm1800 and blame it on the Myeg convenience.
The thing is that in the end it looks like we are the ones that are losing out. GG lo.
Need to translate to bm.. so that macai understand
Why?? all malays are macai ka?? or all macai are malays??
grow up la..
What he meant was all macai have no profound knowledge in English, so its better to be in Malay so they could understand. So you, enough with your RACISM mentality. Cheap attitude..
Wallawey, a guy wit a racist statement was backup by another, and blame the so called cheap mentality of others. Its like rasicm wit gst. I think the article shud be converted not only to bm, but tamil n mandrin as well so all macai of all races would understand
Macai in Cantonese means “follower” ,”one who follows the leader”.Please dont bring racial issues in.A macai can be Indian,Chinese,Mongol,Punjabi,or malay.
Then why translate to BM only. Translate to all language lah bro so that other machai can read.
Actually he is right, most macai are uneducated. Therefore they do not understand english. But BM is our national language. All pasar ppl oso can understand. Even bangla, indon etc. as they are macai too
My theory is CBU cars might be cheaper than Ckd if manufacturer don’t take too much profit or the government control
Because CBU is a complete car, you only get charged the storage and handling to get the car to you, the services part right?
Ckd, first you pay gst for the services to have the shell delivered to the factory, then you pay again for all the individual local content that’s used in assembly bumpers interior tyres etc. Not to mention gst on the power and water used to assemble the car, and finally gst again for services to get the car to you.
The Ckd distribution chain is so much longer compared to a CBU car, the longer the chain the more tax you keep paying right?
That is wrong
It doesn’t matter where the car is sourced from, the only person paying gst is the consumer. Every other stage its just paid and claimed, RM100 paid then RM100 claimed back
So the 6% will always be only on the final selling price of the car to consumer
It doesn’t matter how many stages there are before the final sale because the gst at that point is all claimed back. It’s non existent cost
Not sure why government never bother doing enough awareness on this, few weeks to go people still don’t understand how gst works
Maybe they just do education on rtm which no one watches
You don’t fully claim back your input tax unless you have the same amount of output tax. You’re supposed to net your input and output tax and pay the customs the difference on a monthly basis if annual turnover more than rm5 million. It doesnt even matter whether u have received payment for your selling price, as long as tax invoice is issued, you need to pay any difference in your input and output tax by the following month.
Don’t misled by saying u can fully claim input tax here without explaining further
Come on. You are unnecessarily adding variables and what-ifs. Output tax will always be higher than input tax. You don’t sell things for lower than what it costs what?!
Annual turnover of rm500k la….get ur facts righ dude
Is Rm 5 mil since he said monthly basis report
Is 5 mil since he said monthly basis report
But isn’t then the manufacturer the consumer for the parts supplied to them for ckd cars ?
we are buying th car we aren’t buying individual parts so in theory the manufacturer will bear the final gst as final consumer for that part no ?
Bodohla gaviny.. didnt you read above?
Get someone to teach you gst. Parts ka apa ka form part of dia punya manufacturing business, any material dia kena gst forms dia punya input tax. They claim back all the input tax.
Gst betul2 pass on to consumer saja. Bingai betul. Go troll somewhere else.
Ok so that means I pay compounded tax on all individual parts instead of a cbu complete one time off right
Input tax on parts to make a car is offset against the output tax collected when you sell the car that is made.
If the manufacturer doesn’t track the input tax properly ?
Does the government act a policeman to make sure or is the system self regulating ?
Hi GSTman, what you mention is true if, a big IF, our govt proposed a system as straight forward as SG. HOWEVER, our system, as far as we; me and our accounts and secretary firms guys, after many many different lengths of classes attained, including the full weeks class, understands……. It’s a rojak system from here there everywhere, as long as it makes more for money for the system. Fines will incorporate from Singapore, which has one the toughest and higher fee, gst exception will be like Thais, which looks like a plate of spaghetti and “allow” changes on a whimp. Unlike Singapore. And returns….. All of our own….. Which we don’t quite understand as there are 3 types…..currently.
So I don’t see any but chaos when this gst starts, nor will prices “drop” as the way we might think. It will be more like the shit hits the fan, when it starts for the 1st 6 months.
How about consumables and services that are used by the manufacturers themselves that will be taxed? Ingat bapak hang akan bayar ka? Don’t mislead by saying everything that the manufacturer spends/buys will go directly into producing the cars. How about uniforms, medical benefits for the workers, GST exempt? Rental costs for storage, GST exempt? Advertising agency costs, GST exempt? All of this will itself will cause the operating costs to go higher. Because of this stupid input/output taxing model even prices of vegetables will go up tremendously. What? You don’t know that fertilizer will also be taxed? How is the farmer going to claim the input tax for that? He is not reselling the fertilizer to you now is he? This whole GST model smacks with nothing other than greed. They pick the worst of available systems to just squeeze maximum tax and even some instances, double tax us by even refusing to return the amounts already taxed. Better go work for customs, can collect fat bonus next year.
I think its u who’r wrong gst men. U can only claim input tax, not total tax u paid. Of course output tax will be higher than input tax
Every 3 years all properties rental will be increased by 10%. Now rental has an additional of 6% GST. If your landlord is a company registered GST one. The dealer is not stupid to ignore their rental hike for free. All this adds in to the end user. And with such high rental properties cost speculation in Malaysia. How on earth do you want the price of things to come down. This is the major fault that is why prices up and your boss cannot increase your pay rise as this is the most burdening factor in most of the society faced today!
Bro rental of non commercial building no gst la
GST does have the multiplier effect but not 6%+6%+6% = 18%, you see, the 1st 2 tiers can seek reimbursement from custom department, but this will add up man hour and the cost to do business, on top of that, they need to add in the cost for the waiting period for the reimbursement from the custom department. so this must pass down to the consumer.
You all are really gullible fools. All the business owners i know told me they will just pass on the 6% to consumer. Those in middle will claim back the tax but they will use that to cover the additional expenses to hire an additional accounts manager and also to cover higher financing cost since most of them get paid only after 60-90 days term while they have to pay GST upfront and wait ages for the refund. So effective GST on consumers are going to be wayyy higher than 6%. Just wait and see.
As far as automotive is concerned, importer’s 6%,distributor’s 6% and finally dealer’s 6% all will be dumped on end user’s head. From three levels a total of 18%.
No that is absolutely wrong
It’s not one gst on top of another
The end cost is bear only by customer.
All the gst collected at the different stage, they get to KEEP most of it and NOT pay back to government because it’s claimed against their earlier paid gst
Let’s say I paid RM10 gst and then charge the next level RM15 gst, I only pay RM5 to government. In the end I pay nothing, I pay RM10 then get back RM10.
In the end the one whose paying the gst is only car buyer
The G wants the businesses to be tax collector for them and as long as tax invoice is issued, the gst needs to be paid to customs the following month after netting off the input tax, even though full payment have not been received! The following month period is calculated from the issuance of tax invoice or the “basis tax point” whch means completion of sale or deal, whichever earlier. No more playing with invoices here like how businesses do right now, job completed say in February but invoice only raised in June. For GST, if your job / deal is competed, you need to raise tax invoice within 21days.
In other words, businesses need to pay upfront net GST to the customs the following month even payments have not been received and this will affect company cash flow dearly, raising operating expenses. You can only claim the refund If the invoice payment is not received within 6 months from tax invoice date.
What happens to dealers with pre-Reg biz like Vw and BMW? When they register pre reg cars under the dealers name, gst would have been paid the first round after netting off whatever input tax.. Maybe less discounts for pre regs? Maybe more cash rebates for new cars? More transparent transaction with dealers and principals?
Pre reg is used car. The story addresses it already
Yep. This is exactly what will happened. Not only for car manufacturers, but all companies. Especially small and SME companies, their cashfllow will be greatly affected. Money haven’t collect from debtor yet, but have to pay GST already.
Chaos is coming.
Already mid of March now and still don’t know whether up or down. Or stupid bn purposely hide it from rakyat. This kind of game only can happen in bolehland.
in malaysia, business men (from big companies to roti canai sellers) are known to be unethical and taking advantage of the situation to raise prices, at a moment notice.
Others will give funny excuses, giving silly reason to justify their raise of prices.
Even a loaf of bread sudah naik harga!
So, ask yourself honestly as a Malaysian that have resided here for so many donkey years…..will the price really go down??
Completely agree. If the dealers increase price after GST, you can be quite certain that there is a high margin built in. Personally I don’t like being unfairly taken advantage of, so I have no intention of buying any car that increases in price. It is bad enough to pay the highest tax in the world, the idea of extortion by crony car distributors is the last straw,
scrapped the GST or lose vote
your choice
Malaysian citizens vote for bn barang naik dont dream car prices will go down.Be my pleasure if its going down wa ka ka dont sleep with fantancy feeling its wont come that so easy.
Price would definitely drop. Who the hell keep on spreading its going rocket? SSP is 10%, GST replace SSP at 6%. Who so pro at math saying the price will rise huh?
Of course every business will say buy before gst because the stocks they holding now are 10% tax, they want to clear stock as soon as possible before gst implement if not they will be making loss and if they say gst will reduce price, what do you think their business will be at the moment? everyone will hold the purchase until april 1, so before april 1, die la. That why now many business give big offer, is up to consumer choice to buy now or later.
See who is lier, after we will know, the male get talent.
New car with better experience need a great road. Hope that the GST income will used to provide a safer road.
Dream on. If the govt didn’t songlap the income of the nation, which was supposed to be used for developments eg. building safer and wider roads, there wont be GST in the first place.
Do you even trust the bastards with GST income? Chances are, it will be used to fund one of many Jho Low’s Crystal champagne than the tar you see on the road.
in the land of BOLEHLAND..anything is possible..cheers!!
The elephant in the room is not if GST will reduce or increase the price of cars (even if it is, the amount would likely be negligable)
The real problem is, eveything else will go up anywhere from 6-10%.
Thinking of splurging on a new car this year? Better think again. Once you take a loan, you’d be stuck with it for half a decade or more. Better get a good look at household cash flow before any commitments. If one is cash rich, sure, go ahead and get a new car, but judging from the amount of household debt, thats likely not the case.
In the end , customers are the one on the losing end.
Already the excise tax and duty can make up to 100% of original car price, now have to factor in another 6%.
Everyone in Malaysia is a slave to the banks.
Only the banks are laughing
Drop by 1% but then bank interest up by 0.3%. If adding gst on service cost and tyre replacement service for 7 years still rakyat suffer
It’s been more than a year information related to GST already been publish and awareness have been made on the internet, books and mass media.
But as typical Malaysians, we will only complaint on the very last minute at the last stage of implementation.
And then, we accused them to hide somethings from us.
Our laziness and ignorance is beyond imagination. Funny though :)
Umno bn said in my dreamland car prices will go down but in realworld car price will go up be borne by the buyers. Welcome to bolehland.
“the refunds won’t be speedy – they will be given in eight equal installments over a period of two years!”
I’m expecting most of the old stocks will be priced at double tax price. Companies are not that nice to absorb the price of super slow tax return.
Points:
1. Gov no $$. So never dream too much on significant car price reduction.
2. Fuel no longer subsidize. That is to patch all $$ leakages.
3. Car price reduction? Yes, but not much. Only reduce more near election time.
4. All Malaysian in debt? Yes, this is to make sure no one can strike on the road for weeks or months. Everyone need to think on settling their debt by the end of the month.
5. Independent EC? You are smart enough to judge.
Conclusion & congratulations :
BN forever….Hidup BN…..
Im more concerned on overall cost of living which affected by the GST,cause its long term additional expenses.i have not much interest on how it works only for automobile…
3 damn words – we are the losers. Like the umno tagline, dulu, kini, dan selamanya. Beribu ribu tahniah..
without 10% sales tax but replace with 6% gst + 6% of gst on insurance which needed to renew every year? Is that really worth to buy a new car At this moment? Good gov give a really “good care” for the people of malaysia
Lastly We How pay GST
– END USER ..
I know how gst work, but I won’t tell you guys here unless you come to my gst seminar cost rm500 per pax only
GST excluded, so have to pay rm30 more k.
Im bad in math and english. After this long article, the prices are up or down?
GST or no GST… I think it will not impact anything because apparently is semua apa benda pun naik tapi gaji tak naik…
It just the beginning that GST rate at 6%, and it not be forever 6% in the future and of course there is reason for Govt to do it. Like I said before, GST tax collected put to good used benefited the nation and it a better system than 10% sales tax. A heavy penalties, if business does not comply on submission of GST return to Customs.
Consumer had to adjust sending when GST enforced, so a few months of low sales volumes are common as consumer psychological behaviour of caution spending. I think to spend on purchase of luxury good means pay more GST tax.
When cars sales volume not meeting target of 1QTR2015 and further sales downturn after GST enforcement. I think of another round of sales promotion “GST promotion fair” maybe on the its ways soon. I hope my prediction is correct..
hope your prediction is correct..supply versus demand..
Datuk Subro…correct ah? sounds like subaru.
anyway, datuk, u expect prices down, but if manufacturer/dealer does not want to reduce price…got penalty ka? if no penalty u think they care to reduce price?
If you all good at this, so why don’t you all become the Perdana Menteri. There is much more than just for car price going up or down. Remember that there are 160 countries that had GST/VAT system. So don’t go bashing out on people if you don’t do your homework. Just wait and see how these changes affects us all. If you guys don’t like it, sure, vote whoever you want next time. Why is it always about politics.
Readhere, unfortunately, sorry to say that no one can become PM here even they wanted it badly. If it is not about politics, what else? We eat politics, we drink politics, we bath politics, we drive politics, we sleep politics & we talk politics because it affect every single Malaysian. GST or not, never compare with other countries because there is nothing to compare as their car are cheaper. All we want is a progressive nation that benefit all & of course to be a proud Malaysian. Majulah Malaysia!!
It is all about politic. Who do you think came up and approve all policies, law, enactment, by laws etc in parliament?
The ruling party should be accountable for flip flop in our country management.
That is why religion and politics must not be seperated. One without religion does not make sin.
Whatever it is..1 really hope 1 thing will also go up next month..
SALARY..Dear GOD..Amen
If car prices come down, expect worse traffic jams. If BN honors their promise to decrease car prices by 30%, number of cars on the roads will not be sustainable.
Besides, BN said the 30% is a challenge to car manufacturers to reduce their prices.
Syukur BN tak turunkan harga kereta.
Look like thinking backward rather than “think further”. Traffic jams is for the Gov to solve, that is why you elect those Gov, else what are they for? Think further, due to the policy that cause expensive car, almost all car has less safety feature. Who suffer when involved in accident? Where is the caring for Rakyat? You deserve more.
“Think further”
Majulah Malaysia!!
So let the traffic jams happen then think of how to solve it? Better to prevent than to cure, no? What do we intend to solve by making cars more affordable?
Instead of demanding lower car prices, we should be looking at improving public transport and lowering its cost, driver descipline, road conditions, enforcement…
I’ll say it again. Dropping car prices is not the answer
You need to know what is quality living “Think further”.
Actually car is affordable now. That is why you see thousand of viva & saga on the road contributing to the jamm…
Here you go on public transport cost… it just shoot up.
Congratulation again.
Majulah Malaysia!
Why lah….
income tax…
land tax…
door tax…
any tax…
is all same tax…i got salary of RM2500 have same tax with person who have salary 10000…
This is FAIR TAX they said…
br1m only get if household salary below 4000…what happen to middle class salary people…living in klang valley…4000 is just enough for current life without future savings
basically u are saying u have no idea too.. and i just wasted 10 mins reading thru this article. Oh boy
wont in our life time that car price will drop with cronies grab all franchise and existing of p1 and p2..
saudi and other arab country is the best.. no such nonsense about tax.. they do not pay the following taxes:
– Personal income tax
– Property tax or real estate tax
– Stamp duty
– Council taxes
– Sales tax or value added tax (VAT)
– Road tax
– Car tax
– Gift or inheritance tax
– Television licence
that is why, you can see most people drive big engine cars like v8, v12 etc.. in Islam, its haram to collect all this tax.. the only tax-like is the Zakat (given among the poor people) and any non muslim living in the land, should pay jizyah (somekind of tax), thats all.. nothing more than that.. its the weird western bloodsucking system we are following.. pathetic haha..
Television licence? Are you still living in the 1980s?
Come on guys, just 6% there is no use to argue, do your best to survive pay your tax. Face it!
I agreed with cyberpatrol just use basic economic theory..dd/ss if the price increase after gst definitely pple will hold back to purchase car…if less sales what dealer will do??promotion or discount…why need to know turun atau naik aftr gst..
stupid goverment, follow other countries like this, our malaysian many people is still poor, its had been told by KWSP that many of our people cant afford the lifestyle of this modern world. if GST implemented, many people will suffer more .what a stupid here. like the wise said, if the stupid rule the countries, many unlucky people will start to die.if the bastard rule the countries, many poeple will suffer.
They are not stupid but greedy in sucking Rakyat’s $$$$ !!! just like what thay are doing ing 1MDB now.
C’mon guys. Be realistic. Even without GST, do you guys really think that prices of things will go down? And with GST, poor ringgit performance and drop in oil prices, which translates to lower government income, you guys still think that prices of things will come down? You are living in your own world.
Since they have removed the subsidised petrol they should remove import tax and duty on car as well.
Let’s think about it,currently our petrol price system are following the global pricing( which I do not know where did they followed ) eventually the price will go back to normal which at the end we will have to pay up to rm3 per litre( most likely probably).
You want do then do steady la do until fair la remove subsidised but no remove tax and import duty on car?
Hey ppl plz dun use racist comment okay?
You said GST bingai? You must be said all the g’ment of Singapork, Filipinos, British and all the EU countries are idiot too??
So, you can apply citizenship to government of Brunei or Myanmar or elsewhere which GST doesn’t apply, stay there, dies there. You will be happy there trust me!
Cost of living in Britain or Singapork are much, much, much higher than M’sia eventhough their salary are high too.
In Singapork bastard government, you must pay for home parking, car speed limit is 80 km/h and other insane rules. Why those ppl in Singapork, Filipinos, Cambodia, Britain or EU’s can accept it, why not yous?
Our daily routine are politics? Since says who? Your definition Nancy? But, not we as Muslims.
Why oil price and living cost are high? You should ask The White House, why they are bombing Iraq, Afghanistan and other countries, including Middle East, not the EU’s nor the Latin America?
Finally origin the word MACAI = ‘Mempercayai Apasahaja Cakap Anwar Ibrahim’….get it headbanging?
Muslims has no politics? Pls take a good look at many Islamic countries, ha,ha,ha..
Come on lah, all humans are political, this is due to wanting to survive since million years ago.
The government can tax the way they think berpatutan, seriously and no joke, but please use the tax money properly, wisely, appropriately and efficiently; janganlah telan half of 50 billion, a few percents is reasonable (I didn’t say it is absolutely right to telan).
The government can impose various rules for the sake of rakyats, but the Orang Besar must not be exempted without solid reasons (I didnt use the word ‘totally’, in case you do not read carefully).
I believed, the high and speedy increasing cost of living is largely due to 1) greed (whose greed is that, many Orang Besar, and ordinary businessmen) 2) suboptimal governmentship. Have we compared us with other developing countries, truthfully?
DSAI already went to jail & it is still not enough? Are you Saifu…? I felt sorry that you hate pork so much. Isn’t the Creator that made it? OMG..
Majulah…. Malaysia!
Yada yada yada…
Nobody can easily take your money in your pocket if u did not let them.
What more important is to answer this question, “What should we do consumer?”
For me, I will maintain my current cars and stop buying any cars (local,CKD and imported) say for 2 years or so, until I see a significant price drop (without compromising specification). I will also convince others in my influence to do the same.
If we do this together, TIV will drop, stock piling and not moving, whatever taxes imposed and GST will irrelevant. Surely price will drop…
Let do this together, and we actually will control the car prices.
When the buying stop, the killing can too.
When we work together we can win this…
Yes we are not the only one and other countries including asean hve applied it long time before within 3- 12%.but they dont have excise duty that make the cars’ prices up to 65-102% of initial value.
free parts and labour for cars under warranty subject to GST, too? Paul?
Normally, if the question is whether we pay more or less, then its likely to be the former…
Previously they over sapu most of the money in their own kocek until now money not enough to cover the budget then they implement gst to suffered all of us. @_@
At the end u all still buying a new car that the fact lor even u all keep complaining !! jib gor just don’t care lor he see the big picture de la .. why he bother eh!
Aiyo pusing-pusing also kena GST. Used car should be no charged GST as previously has been taxed. But then putar belit said the seller should be charged 6% due to Margin Scheme. What? Used car dealer want to bear the 6% cost meh? Of course charge the customer. In the end, the end user will be dead meat paying all the taxes.
lolz
we all know b4 PRU13 that BN going to implement the GST…. and yet they are still in power.
tak suka…pindah keluar Msia laaaa….kah kah kah kah
you know what the sad thing about “pembangkang”, not all of them go for election. sapa tak pergi mengundi kat sini angkat tangan! hahahaha
am getting confused now,am no good in math but lemme try….
lets say…
a chicken cost rm10… and a Manufacturer Smiley bought a Chicken for RM10… a registered company is subjected of being charged 6% GST Input tax, the total cost of the chicken Manufacturer Smiley have to pay is RM10.60… Smiley pays RM0.60 GST (claimable through next process)
Then, after Smiley processed the chicken into NUGGETS (which by right, increases the chicken value – OUTPUT) Smiley have to charge another 6% for his profit, thus he charged RM20.00 + 6% GST to Supplier Hashtag, meaning the chicken nugget’s price bared by Supplier Hashtag is now RM21.20, of which, She bares a totl of RM1.20 gst charges…
on the other hand, Smiley earns RM1.20 after he sets 6% gst charge to Supplier Hashtag, but Smiley have to pay Net GST total of 6%, which, his total output tax (NUGGET) RM1.20 -(minus) his total input tax RM0.60… making him claiming back his input tax of rm0.60 which was charged earlier by using the money paid by Supplier Hashtag (RM1.20) for the Nugget (Output) he made…
The same cycle is applied by Supplier Hashtag…
what i can see is that, although the manufacturers and suppliers are being charged lower for a unit, it would indeed look cheaper, but when we look at it in a larger scale, they too are paying in a huge sum of money:)
correct me if am wrong, but i think that this system,
the government, is actually trying to make it easier for them to monitor our economic state through the flow of our economy and also to make a fair taxing charges on all sectors, because there are some who don’t pay tax, but gain maximum profits, and if that occurs, the end user would be charged more….
let me give an example of unfair taxation charges…for example, villagers of kampung A, produces Kerepek pisang weigh 100g/packet x 100pckts: with input cost of bananas (RM0), Sugar (RM2), Oil (RM2), Gas (RM2 roughly), and human labour (rm2) resulting Output total of RM5/ packet…. so, for 100 packets, the makcik earns, RM500, and sell lum sum to a supplier…
the supplier then charges Rm2 for fuel charges and ‘personal’ tax of 1% on each kerepek pisang, (when actually all the kerepeks come in one van and not exclusively brought one by one in the van) resulting each kerepek to be rm7.50… he earns rm750 (250 more than makcik) WITHOUT even having to pay TAX…
we however, will more or less being charged by the suppliers for their profit and charging 5% government tax (current) rate, making us pay RM7.87.. rounding, RM7.90… and “kedai man” wants another profit, resulting us to pay rm8.00…. so, which is fairer…?
kesian makcik kerepek… and uss…..
thats all i gotta say i guess..sorry if my math is dumb, but read between those words… lets try and give it a chance… if its no good, then, we say lah, nicely… all us malaysians are not clear about this… even those who thinks they’re clear about it is also unclear… take risks once in a while… if not, then how wanna know its good or bad? kalau Malaysia boleh semuanya, then why not boleh bersabar, boleh berfikir dan bertindak waras and matang, siap boleh jaga tutur kata, and bukan hanya boleh condem… kalau pkir negative boleh, then, positive pun boleh kan…?
Without import tax, excise duty, national tax,
GST is fair.
With Import tax, excise duty, national tax, +6% GST is ridiculous! Double, triple tax!!!!!!!!!!!!!!!!
F da G! U make loss , ask ppl bill it!
How many champagne going to waste?
Ask Paris hilton.
I heard Paris Hilton charges USD 1 million to drink a bottle of champagne with you.
Haiyo, how to survive in this country. Mati lor. Ini sembelih sampai putus kepala.
This is the article in Paultan that i have ever read which are neither here nor there.. It didn’t answer on the issue as highlighted as per the title. Poor write up. Thumb down. At the end readers still dont know whether is going or going down.. :-(
the conclusion is very simple
fxxk you, BN !!! to suffered and burden the rakyat to cover your inability, karma’s awaiting you up ahead
TLDR. No need talk so much. The problem starts at:
“GOVERNMENT APPROVED SELLING PRICE”
Period.
Dont blame the govt fir the car pricing. If Pakatan take over they are also full of crap – in fact they will fall over themselves to claim control over each other and this is bad for all of us. The gst is already lowest in the region so all you bahlul stop complaining!
R u still sleeping?pls wakeup!!!
How about excise tax and import tax, as we all know the car selling price is sky high in MYS.
f c k gst and dont vote BN/UMNO in the coming election…come on the choice is up on ur hand and pls influence ppl around u for the vote…
GST = Government Sucks Tax
Why pening pening to try leberalising gov move on GST?… 6% laa, 0% laa, GST free laaa.. Price go down laa, goes up laa..
The bottom line of GST implementation is because government want to collect more tax money from the inhouse economy.
And that money somehow is to come from the consumer, the rakyat as end user in that economic chain.
The nett effect of GST > you like it or not, everyone of us has to dig dipper into our pocket post April 1 .. Fool to rakyat Malaysia!!!
I always vote for government BN ( umno, mic, mca ) and etc.. But due to this stupid GST. I think more people will change to PKR or other. yeah… just my opinion. If government have no money, they have to find a solution, not to burden Malaysian citizenship. How about banglas, nepalis, indon and etc. some of them running a business without paid any tax at all… … :(
Car price go down….APRIL FOOL MY FREN!!!
Looking at how the tax works, most likely, car prices will go up,
Manufacturer unlikely to absorb differences between output and input tax to maintain controlled price such as now.
6% over every markup will definitely paid by consumers at the end of the day.
It is not simple as:-
100>>> 100+6>>>100+6>>>100+6 = 106 (consumers)
The actual scenario will be as mentioned in the article.
100>>> 100+5 profit+6>>> 111+5 profit +6 >>> 122
122 is not any cheaper as 100+10 from previous tax structure.
In theory, GST seems like the must do for a country to raise revenue (based on consumption). What is not priced is the cost of infrastructure to implement GST. Every company is employing new staff, upgrade IT/ software. Govt is employing more staff to administer-All these must equal billions for essentially increasing tax.
The current system of sales tax ex-factory, ex-port is much more efficient. if necessary, charge 20-20sen on the price of petrol.
The RM500K threshold is also very low- I sure would like to know what the threshold are for the other countries.
good
Check pick blue bear
An article with speculation and without a conclusion is one lousy one. This is a pure waste of time.
the currency now 3.7RM VS 1US.. it is difficult car price will drop.
Price increase or decrease will depend on a lot of factors. Even if the tax rate decrease, the greed of the seller can still increase – and that mean the buyer will pay higher price, if they still want it.
The key here is education. Buyers have all the keys in their hand to BOYCOTT any brand or any seller that they dislike. So, when people complained about tax and leave the buyer alone – I know that their understanding in economic ecosystem are skewed.
Conclusion? Some price will increase and some will decrease depending on their own sub-ecosystem and people (read:greed) factor.
The only way to combat this is to learn how to be a sensible buyer.
as you can see, all parts will be charged of 6% gst.. the importer, distributor, dealer and finally consumer. For all those 3 parties, they will get back their paid money from the government from the gst claims.. but the consumer? except absorbing all 6%+6%+6%+6% costs from all parts. correct me if i’m wrong..but if i’m right, then.. wow.. that’s superb. Does its really reducing OUR burdens??
So, in conclusion, want to avoid GST and buy cheaper car, go buy used car from an individual, correct?
GST hit, which one you buy for most; car, cake or cloth?
With the sure-up price, rakyat will secure food and clothing first for a certain period, demanding public transport to inprove and healthy work style. Car is no longer essential, but may be have item.
If you do the math, you’ll realize that the GST is charged after all the fees are added makes it more expensive than before.
Lucky I did not vote for BN so the GST should kena BN voters only hehehe. So next PRU14 vote for them lagi laaa..
everything naik! hujan saja yang turun!
As a customs practioner, I am impressed by the the detailed analysis of the GST impact on auto dealers/manufacturers/distributors. Especially enlighten on the double taxation on vehicles in bonded warehouse. Thank you.
we have discussed the impact of gst on used and new cars and, in general, it looks positive.
Reconditioned (ie used cars imported from overseas using AP) seems to fall into a grey area and I have not been able to find any information on the gst impact on such vehicles.
Can anybody pls comment.
Aiyoo why so many tax we must pay
can used car dealer claim input tax 6%
on Puspakom inspection?
No women no car GST …6% slightly differances