Back to regular programming, following the lovely false alarm brought about by what turned out to be an erroneous news report, which said that car prices were set to remain unchanged from September 1, which it won’t be. And so, the window of opportunity continues to close fast on consumers still shopping for a vehicle during the three-month tax holiday period.
Such is the surge in demand that waiting lists for many models are now two to three months long, and many deliveries are expected to occur once the sales and service tax (SST) is reintroduced. Buyers who take delivery of their new cars from September 1 will have to pay more for their car, the Malaysian Automotive Association (MAA) said.
Its president Datuk Aishah Ahmad said that any new vehicle delivered and registered after September 1 will have SST imposed, regardless of when the booking for the booking was made. She reiterated what she said in May, that car prices are likely to go up with SST.
“When GST was introduced, prices went down for most car models, so from GST to SST you know for sure that there will be a price increase,” she said, adding that car companies were waiting for details of the new SST mechanism before they can finalise any pricing changes. “Once we know that then we will be able to know the exact amount of the increase,” she explained.
She added that there was no way the industry could produce more units to meet the increased demand or beat the deadline. “When it comes to producing vehicles, there is always a four-month lead time. You need the CKD packs, and the vendors to be able to build them. With zero-rated GST, we only knew about it in May, and there’s no way you can increase and request for production to ramp up or have your vendors do more. So, whatever is in stock and in the pipeline is what we can sell,” she said.
Aishah said concerns regarding the impact of SST is the reason why the association has revised its total industry volume (TIV) forecast of 590,000 units to 585,000 units for the year. She said that the surge in demand from June to August is expected to be offset by slower sales in the final quarter of the year.
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Most probably will remain. You think our government will let it go up? Pakatan just took over, they won’t let this to happen.
Previously sooo high taxes, went to corruptions.
Keep on dreaming…
What if sst for automotive is only 5 percent by september first and price way lower than gst period, is maa president going to have naked run around klcc park?
You beloved FM already said 10% sales tax. Are you saying that he lied?
Consumers always lose out…
So a picture of slides comparing the same rm60k Perodua with GST vs RM62k if SST went viral.
Interestingly I checked back paultan post on 1 April 2015, the closest example to this was Alza 1.5 Adv, which only dropped rm95.
So back in 2015, Perodua actually saved rm2k switching from SST to GST but only passed rm95 saving to customers. Only a fool would glee at this “incredible” price drop thanks to GST!
Alza 1.5 Adv only dropped price later during facelift, and on 1 June 2018, 0% GST made the price drop by rm3k. And now that SST will return, Perodua will increase price by rm5k? What a devious bastard!
So this Aishah can go keep skin, mudah puas hati carmakers throw bone when they saved a lot more switching to GST, and now carmakers being opportunistic, doesn’t even bother to fight for consumers which MAA supposed to do in the first place. Her head should roll next, overpaid, incompetent dedakian!
Expect higher than the SST difference due to our poor exchange rate.
Yes agree her head must roll too,
This lady had been sitting in the MAA board for too long .
She had done nothing amazing and contribute nothing to the consumers.
She only Cries and shouts when the new car sales dive down. But when sales goes up , she never thanks anybody
Do not know why in the first place , she can be appointed to be the chairman of the board . who appointed her in the first place.
She also did not propose to our government about Malaysia becomes the manufacturing car parts for Asean AND if possible globally.
She wants more car sales in creating more traffic jam and road congestions to all users. When new car sales goes down , she propose to scrap older cars on the roads at the expense of many owners
She never propose any formula to bring down new car prices so that existing owners can afford lower new car prices for replacement.
She just leave it to whoever the government of the day
This type of job she is holding everyone also can take up the post easily. Period ..
SST shud be based on constituencies.
Government needs the SST. Cause they need to pay off all the bad loans and RM1 trillion bad debts of and also all other more to come scandals by the past
if thats the case, they should’ve kept the GST, collect more money, faster clear debts, some more can give bigger susidies (tongkat) to reduce petrol price…some harga kereta also tak naik!
PH=Price Hike
cakap buat apa? do something la….
Price will definitely increase. SST is a cost. For GST compliant businesses input GST can be claimed back and therefore not a cost.
Claim back mean you dont know how GST work flow till hit buyer or consumer.. just simple work flow only GST..
1st Raw Material -wholesale GST = RM100
2nd Wholesale – Vendor GST = RM300
3rd Vendor – Manufacturer GST = RM500
4th Mnufacturer – Dealer GST = RM600
5th Dealer – Consumer GST = RM1200
1) RMCD get RM100
2) RMCD get RM200 (RM300-RM100)
3) RMCD get RM200 (RM500-RM300)
4) RMCD get RM100 (RM600-RM500)
5) RMCD get RM600 (RM1200-RM600)
See total RMCD get is RM1200 & same as consumer paid RM1200.. those “CLAIM BACK” wording just RMCD GST COLLECTION WORK FLOW.. DERRR.. At the end consumer paid lerrr..
LOL… Please don’t tell me you still believing those calculation. we create the calculation only to make people hate BN & help PH win the election. That’s why now gst is already rated at 0%, but the price not so different. we only made it up.
Based on ur logic, car prices shud be halfed after GST is zeroed but why isnt this so? Ur logic and reality tarak ngam wor.
Many companies can’t reclaim the 6% until now that’s mean it take a longer time to get back the 6%. Manufacturers, wholesalers, distributors n retailers. That’s why all affected ones will incorporate the 6% into the products, consumers have to bear the cost of supplies.
Local assembled car will be cheaper because the LA cars do not pay GST for the car components.
Px went down is a joke during GST era.
Dont talk about conti car first.
Mostly of local, Japan, Korea cars’ px went down from few ringgits to few hundreds only
Liar.. when imposed GST last time price remain & only add several accessories..
Local assembly cars are definitely cheaper because the CKD components are not subjected to SST unlike GST it taxes on all components inclusive screws. We hope that the locally made cars have the costing reworked and gave the buyers a fair and just prices in September.