Perodua dealers plead for sales tax return prior to GST, claim RM230k loss per dealer on double tax

Perodua_Axia_Standard_vs_Advance_ 001

Ahead of tomorrow’s implementation of the Goods and Services Tax (GST), the Perodua Dealers Association wants to be able to reclaim the 10% sales tax paid on unsold stocks, to avoid double taxation.

The new tax regime will see a 6% GST replacing the 10% sales tax. For stocks that have already been added to dealers’ inventories, the previously-paid sales tax may either be refunded partially, or not at all, depending on conditions (read more here).

“This means unsold stocks, with 10% sales tax already paid, will be hit by an additional 6% GST after April 1. Each independent dealer will stand to lose an average of RM230,000 on double taxation after April 1,” said Perodua Dealers Association president Wan Kamal Wan Ismail in a statement, although no explanation is offered as to how that figure was derived.

“Perodua dealers consist mainly of medium-size companies and losses on this scale will have a huge impact on our business, especially on our cash flow and profitability,” he added.

Statement by Perodua Dealers Association president Wan Kamal Wan Ismail

As the representative of the Perodua Dealers Association, I wish to plead with the government of Malaysia to allow us to reclaim the 10% sales tax on invoices issued prior to the implementation of the Goods and Services Tax on April 1.

As an introduction to the issue, the government is currently imposing a 10% sales tax on new vehicles, however, after April 1, the 10% sales tax will be replaced with a 6% Goods and Services Tax (GST).

This means unsold stocks, with 10% sales tax already paid, will be hit by an additional 6% GST after April 1. Each independent dealer will stand to lose an average of RM230,000 on double taxation after April 1.

Perodua dealers consist mainly of medium-size companies and losses on this scale will have a huge impact on our business, especially on our cash flow and profitability.

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Comments

  • Same Lorr abah kau on Mar 31, 2015 at 10:22 am

    First!

    Like or Dislike: Thumb up 6 Thumb down 49
    • Same L0rrrr on Mar 31, 2015 at 11:44 am

      That’s why I said, “One way or other, you are subsidizing Proton”.

      Proton won’t fall before the government fall.

      Government won’t fall before every tax payer fall.

      So good luck to all of us!

      Like or Dislike: Thumb up 18 Thumb down 10
      • kzm (Member) on Mar 31, 2015 at 2:54 pm

        Now we know why p1 doing crazy n ridiculuos promotion for the last 3 month..it is to clear all stock n avoid this situation..some company too pride to do same thing..suffer

        Like or Dislike: Thumb up 25 Thumb down 5
  • momoi on Mar 31, 2015 at 10:23 am

    Where is Goverment promise to reduce car price?

    PEtrol Unsibsidized.
    Why we pay expensive petrol and expensive car at the same time.

    Well-loved. Like or Dislike: Thumb up 119 Thumb down 3
    • kimi's fan on Mar 31, 2015 at 10:33 am

      and some more..

      WHERE IS PETROL PRICE CALCULATION PROMISED TO DISCLOSE TO PUBLIC ???

      Well-loved. Like or Dislike: Thumb up 113 Thumb down 1
      • ProtonGSC on Mar 31, 2015 at 10:51 am

        And more…

        WHERE THE OPEN TRANSPARENCY ON ALL TAXES AND POLICIES ???

        BN only good in talking with no action !!!!

        Like or Dislike: Thumb up 36 Thumb down 0
    • car-fans on Mar 31, 2015 at 2:01 pm

      moimoi – Kita kena ‘Kong’ by Gov … Everything they wanna to ‘sapu’ … Yes or No – We Malaysia suffer nia !!!

      Like or Dislike: Thumb up 13 Thumb down 0
  • ruffstuff (Member) on Mar 31, 2015 at 10:28 am

    Kamal Perodua is the president.

    Like or Dislike: Thumb up 4 Thumb down 1
  • Arell on Mar 31, 2015 at 10:44 am

    This is the risk of doing business. If tak sanggup rugi, go and makan gaji. period.

    Like or Dislike: Thumb up 12 Thumb down 11
    • Masala on Mar 31, 2015 at 3:38 pm

      Dude, rugi because of your marketing is shit, product is bad or competitors are doing better than you are = Acceptable. But rugi because of double taxation due to the Government’s shitty policy = Not acceptable.

      Like or Dislike: Thumb up 28 Thumb down 0
  • common sensor on Mar 31, 2015 at 10:50 am

    You can claim only 20% of the 10% sales tax paid on your unsold stock. Its a bit too late to ask for it now as GST will start tomorrow. This is the issue highlighted by the industry in many occasions, appeal even made to PM. Apparently, you did not do your homework.

    Like or Dislike: Thumb up 16 Thumb down 0
  • dodgeviper88 on Mar 31, 2015 at 10:58 am

    If only they’re just as enthusiastic in passing on the savings to the end user. Whatever it is I really hope the dealers will get their tax returns accordingly cause ultimately if they incur additional costs it’ll be passed down to customers.

    Like or Dislike: Thumb up 11 Thumb down 0
  • Price to pay for not voting wisely :-(

    Like or Dislike: Thumb up 34 Thumb down 2
  • Don’t be silly P2.. G where got money to refund you? Our G very poor, u help G, G help u ma…

    Like or Dislike: Thumb up 17 Thumb down 0
    • G is actually rich.
      but donno to control the cashflow.
      gst is to make sure G always have money.

      Like or Dislike: Thumb up 14 Thumb down 0
      • LLembu on Mar 31, 2015 at 3:30 pm

        Our G is poor, after GST still poor. Forever poor. They don’t know how to manage Rakyat hard earn money.
        They only know how to manage their private account.

        Like or Dislike: Thumb up 30 Thumb down 1
    • car-fans on Mar 31, 2015 at 2:02 pm

      Name – Is more to we help G … G letting your die faster…

      Like or Dislike: Thumb up 6 Thumb down 0
  • Price to pay for not voting wisely.

    Like or Dislike: Thumb up 18 Thumb down 2
  • muixxium on Mar 31, 2015 at 11:41 am

    10% = rm230
    100% = rm23,000
    untung banyak dah tu…

    Like or Dislike: Thumb up 5 Thumb down 0
  • MoFaz (Member) on Mar 31, 2015 at 11:44 am

    I don’t know how they lose money from double taxation, in the end, the buyers are the one paying all the taxes. and of course they could get back the sales tax already paid for unsold stock, they need to go and talk to kastam instead of making ‘open pleading’ to gov like this….

    Like or Dislike: Thumb up 11 Thumb down 0
    • There is an anti-profiteering law which does not allow them to pass on the 10% sales tax already paid as part of the final price to the customer. So it is true that the dealer will lose money.

      Like or Dislike: Thumb up 3 Thumb down 1
      • MoFaz (Member) on Mar 31, 2015 at 2:28 pm

        the anti-profiteering act is to protect us from double taxation. it doesn’t mean they lose money. yes, they can’t include sales tax already paid or gst into the price because they can claim it back for gov. if they include the sales tax or gst into final price, we’re paying gst on top of the gst or sales tax paid by the dealer.

        Like or Dislike: Thumb up 1 Thumb down 0
        • Only manufacturers can claim a full sales tax refund. Dealers are traders so at most they can get back 20% of the sales tax they paid.

          Like or Dislike: Thumb up 0 Thumb down 0
  • lokcy on Mar 31, 2015 at 12:05 pm

    P2 u are not getting back your money, Najib needs it for their RM2.2mil Electricity Bill and also Rosmah tea party bill.

    Like or Dislike: Thumb up 8 Thumb down 2
  • waterman on Mar 31, 2015 at 12:10 pm

    this is the biggest april fool joke to the dealer. haha

    Like or Dislike: Thumb up 7 Thumb down 1
  • azrai on Mar 31, 2015 at 12:12 pm

    What I know is, the day the car going to be registered then only customs taxes be paid. It is done online and reflect to the RTD’s mysikap system once paid. Then only it can be registered. How come these dealers already paid the 10% tax? So the car without owner reflect in MAA Perodua’s sales chart every month? The Custom already issued statement the paid 10% tax prior to GST will be refunded. What the hell is it all about then?

    Like or Dislike: Thumb up 16 Thumb down 2
    • xiper (Member) on Mar 31, 2015 at 1:16 pm

      As far as I understand, the manufacture date is when the company pays the tax of 10%. So the tax is paid before the car is sent to the dealer from manufacturer.

      Example the car is assembled on Dec 2014, but the manufacturer paid the custom tax of 10% on Jan 2015, the car manufacture date will be 2015 and not 2014.

      Like or Dislike: Thumb up 4 Thumb down 1
  • JB_KIA on Mar 31, 2015 at 12:27 pm

    whatever…claim or cant claim, final car price is up. obviouly gst is higher than sst. all kene kencing, again.

    Like or Dislike: Thumb up 7 Thumb down 7
  • harry on Mar 31, 2015 at 12:45 pm

    I am a dealer for a car brand.

    Let me tell you how it works so you have a better understanding.

    Most of the stocks you see dealer take, are paid for with CASH.

    YES, COLD HARD CASH.

    and once we bought it from the manufacturer, SALES TAX is already incurred since a transaction took place. Current vehicle selling price already includes Sales Tax inside.

    Now, with GST arriving, the additional 6% will be charged once the car is registered, but Sales Tax cannot be charged as the vehicle selling price is set as such.

    So dealers cannot claim back full Sales Tax, and still have to pay GST.

    That is why we are making so much noise.

    Like or Dislike: Thumb up 13 Thumb down 5
    • car-fans on Mar 31, 2015 at 2:08 pm

      harry,

      Why took so long now only ‘Voice Up’ … Surely kena liao … Should bring up in press long time ago not till last minute – Tmrrw will be in Malaysia History – GST !!!

      Like or Dislike: Thumb up 6 Thumb down 0
      • Harry on Mar 31, 2015 at 5:02 pm

        We did not voice out because it was still unclear whether we were or were not able to claim back the full 10% sales tax.

        It was only recently that we were told we will only be refunded 20% of the Sales Tax paid.

        Nobody knows what the government was thinking until the last minute.

        Like or Dislike: Thumb up 6 Thumb down 1
    • sam's best friend on Mar 31, 2015 at 4:38 pm

      You mean you dont even know the sale price and you still can pay in advance to kastam Sales tax? What if you discount, pre-register ect ect? You claim back sales tax from Kastam?

      Like or Dislike: Thumb up 1 Thumb down 0
  • The comments by Perodua Dealers Association president Wan Kamal Wan Ismail is flawed unless he can show how the losses are derived.

    GST ( output tax ) is chargeable (by the dealership) when sold to a purchaser ( buyer pays the GST ). Assuming the selling price is not reduced by same amount of sales tax (that is to be refunded by Customs), Dealers does not lose it , instead buyers pays for the sales tax and GST in the total sales value of the car. So, Kamal, what losses are you talking about? Pls explain in detail.

    Like or Dislike: Thumb up 5 Thumb down 0
    • Selling price must be reduced by the same amount as the sales tax. Then this selling price is subject to GST. Example :
      Sale before 1st April
      Manufacturing cost = RM 20k
      Sales tax = RM 2k
      Dealer cost & margin = RM 10k
      Retail price = RM 32k

      Old stock sold after 1st April
      Manufacturing cost = RM 20k
      Dealer cost & margin = RM 10k
      Retail price without GST = RM 30k
      GST = RM 1.8k
      Retail price with GST = RM 31.8k
      But sales tax of RM 2k already paid, this has to come out of the dealers margin.

      Like or Dislike: Thumb up 4 Thumb down 2
  • 4G63T DSM on Mar 31, 2015 at 1:24 pm

    So 1 more day till GST. Why no one has yet to issue out new pricelists?

    The only one we saw was for the Pug 308.

    The bean counters are all sweating bullets now trying to get things to add up.

    If all employees suddenly decide to become “independent contractors” for services rendered and charge GST, the business community will roll over dead.

    Like or Dislike: Thumb up 6 Thumb down 0
    • car-fans on Mar 31, 2015 at 2:10 pm

      4G63T DSM … Is due to they also unable to get ‘Black n White’ from Gov – Pusing punya pusing … Dunno what price to get … Giving low price later Gov tak happy .. Giving too high … affected their sale … That’s y … till today keep silence …even 1st April they might not able to release their car price…

      Like or Dislike: Thumb up 4 Thumb down 1
  • Malaysians infamy of waiting till the last micro-second before panicking and run around like headless chicken strikes again.
    Its not like this was not explained previously. Just somebody was sleeping on the job and forgot to tell their downline.

    Like or Dislike: Thumb up 1 Thumb down 0
  • I dont foresee any problem with GST provided all prices drop after that. Everybody wants cheaper. Then no grouses.

    Like or Dislike: Thumb up 2 Thumb down 2
  • leslie on Mar 31, 2015 at 7:08 pm

    every mth start frm April Msia Kaya, Krjaan Semua lagi kaya, kakitangan pun kaya, paling miskin ialah Rakyat

    Like or Dislike: Thumb up 1 Thumb down 1
  • wanttobuyaxia on Apr 01, 2015 at 5:51 pm

    lahanat punya perodua.
    cakap unsold stock.
    mana axia aku dh 3 bulan x sampai2.
    saja buat lambat macam siput babi. dah tau model axia bnyk order buat la kuantiti axia lebih byk dr model alza dan myvi tuh. taktik lahanat btol

    lahanat.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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