Pakatan Harapan (PH) has released its Buku Harapan election manifesto for the upcoming 14th General Election (GE14), and though there was no mention of lower car prices if it came into power, as was the case in its GE13 manifesto, there were still some items in the general mention that were related to the automotive scene, or would have an impact on it.
UPDATE 1: The story has been revised with GST-related info.
UPDATE 2: Pakatan Harapan has since won the 14th general elections; however, this article was written before the elections, hence the mentions of the coalition as the opposition in this article.
The first, one of 10 specific pledges that PH aims to fulfil within the first 100 days of taking office, concerns the introduction of targeted fuel subsidies to stabilise petrol prices. Currently, fuel prices are set via a managed float system and adjusted on a weekly basis, and so fluctuation is common.
The opposition says that it will provide oil subsidies at a rate seen fit every month to eligible groups (those using 125 cc motorcycle and cars of 1.3 litre capacity and below). It said an appropriate quota will be set, with the subsidisation mechanism tied in to an individual’s identification card, presumably to prevent abuse. In this manner, subsidies will be targeted only at those who need such subsidy assistance.
The second is also one of the 10 salient points listed in the manifesto, and is a promise to abolish the goods and services tax (GST) and take steps to reduce the cost of living. Doing the former without changing anything else upstream will have an effect on car prices, but this won’t be the case – the removal of the 6% GST (currently applied on top of a vehicle’s retail price without insurance) will see the reintroduction of the sales and services tax (SST) in its place.
For cars, this will entail sales tax, previously imposed before GST came into play. This was applied on a car’s government approved selling price, essentially, the car’s open market value (if CKD) or cost, insurance and freight (if CBU) price, along with associated import and excise duties. Pricing changes will occur, but as a result of the different mechanism of calculation.
As for car insurance, which is also subjected to the 6% value-added tax, the final rate of an insurance cover for a vehicle will be lower as a result of the tax omission, if nothing is added on to it. Prior to GST, only stamp duty was applied to the figure.
Elsewhere, the removal of GST will not have any implications on servicing, maintenance and repairs or the pricing of accessories and spare parts, given that SST – which was previously also set at 6% – will go back in place of it.
There is also mention of a gradual abolishment of tolls in the manifesto, though this is part of the larger canvas and is to be accomplished within five years. The opposition also said it will reduce excise duties on imported cars with an engine displacement below 1600 cc to enable a first car purchase to be made at lower prices. To avoid abuse, only one car will be alloted in this manner per household earning below RM8,000 a month.
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All gifts, cancel all input, money fall from sky i guess , politicians at their best .
Proton has changed partner for good. We Malaysians are the change that we seek.
Malaysia does not need GST if corruption is abolished. Per year, corruption alone is tens of billions of ringgit.
Clean up the country, you don’t need GST. Malaysia is a very very rich country. It is far richer than Singapore. We have abundance of natural resources….tin, gold, silver, rubber, copper, bauxite, palm oil, oil and gas and hundreds of other natural resources.
We are infact super rich. But because of corruption, just a handful get all the riches of the country. The majority, 90% of the rakyat, suffer.
Abolish corruption, and you will see, there is ZERO need for GST
After 60yrs of mediocrity. Try 5yrs…Ynot
Your excellency Jamal
Abolishment of corruption is a DREAM and myth.However,minimisation or reduction of it,is achievable.
Pakatan leading component party is actually the celup version of the current coalition big brother.
However,no harm if we give regime change a chance.The rakyat has their own democratic rights to choose,bearing in mind promises can still be broken.
If whatever changes after GE 14,can make costs of living more bearable,why not?
If it takes 13 hrs to count the juta juta RM confiscated in the Sabah watergate scandal,we sincerely hope it will perhaps take less than an hour
to count any future illgotten gains,due to regime change.
If change can benefit the rakyat,why not?
Tik tok tik tok… bagi signal Tukar lane.
“no harm if we give regime change a chance.”
Big harm there, cuz those who did all those r now on the other side. So how can it benefit the rakyat?
Too much of corruption. Now the corrupted no more taking millions. Already taking billions.
Must clean up Malaysia
We need more Mainland people in our Cabinet. Then only, our country will prosper and do well
People could afford to overeat proves our country already prosperous and do well
Think again, bro! You really need communist in the Malaysian cabinet? Communist???
Take a look at China with their Communist party. What do u learn from there? I believe that democracy system is not as stable as u think due to changing in policy. Look at US as an example. At one point a president wants this, when another president took over, the new president doesnt want that. How to improve?
BS. You can only reduce corruption, but never in anyone lifetime, that it can be abolished. Plus, More that 160 countries implemented GST/VAT, what makes you think that Malaysia should abolish that. I would prefer the government to tax those who can afford to pay GST and reduce income taxes, rather than relying on HONEST income tax payers. At least, it fair that everybody who can afford contribute to the country’s development.
Prior to the GST implementation, there were so many type of people who got away from paying taxes such as contractors, freelancers, traders etc. Yet, they still enjoy the country’s infrastructure and services
Oh u dont have to like your own comments so many times…1 enough la
I would prefer they keep gst for a few years though, they need money to operate after all
Change via structured planning is gud.
Change via Xmas wishlist is chaos and anarchy.
Our car prices are already the highest in the world and yet, they add GST for cars also making it even higher
PT can ekceli arrange a Meet the fans debate on dis topik..
Have u heard of singapore?
Singapore gomen servant earn SGD5000 on average
Putrajaya gomen servant earn RM1200 on average
BMW 530i CBU in Singapore SGD270k
BMW 530i CKD in Malaysia RM388k
Mana lagi murah???
singapore 297bil, malaysia 296bil. GDP
Ya i do, a island who 3x currency higher and most malaysian who head to work for better income counties.
I dont live in Singapore. Do you?
where is Singapore?
Our AP costs into somebody’s personal account, whereas Singapore’s COE goes into the public account.
Dollar for dollar, we are
LOL car prices highest in the world.. another katak bawah tempurung spotted, where “world” = peninsula Malaysia, Sabah, sarawak and Brunei…
Many car models in Thailand, Indonesia and Philippines are more expensive than their counterparts in Malaysia, and we’re not even comparing our prices with Singapore yet..
So…now how???
I believe in Pakatan’s plan for us. At least, besides a progressive automotive policy, we Malaysians will have water!
Today is the 5th day we Selangor people have no water. And this is because Splash is incompetent. And we all know, Splash is from the previous Government and they have a 30 year contract. And even basic water also we cannot get
I am certain Pakatan’s guidance will make our automotive sector boom.
28 May 2013:
Najib reiterates promise to reduce car prices
KUALA LUMPUR: Prime Minister Datuk Seri Najib Tun Razak Tuesday reiterated the government’s promise to reduce the car prices in stages.
“As promised, car prices will be reduced in stages until 2017. Insya Allah, I will ensure that every promise is fulfilled,” he said in his latest tweet.
In its pledge for the 13th general election recently, the Barisan Nasional promised to review the National Automotive Policy to reduce the price of cars between 20% and 30% in stages, and to raise the competitiveness of the national cars if given the mandate to administer the country.
Poppycock! The man eats QUINOA, not RICE. And he waves kangkung at your face and saying its cheap! Would people still thinking of putting their trust on him?? Give it some thought, people!
All politician BN/Pakatan cakap only…Kencing kuat..they come to us…asking our vote…use dirty tactics…scandal here…scandal there…after we vote for them..later they ditch us for the next 5 years….
Gonna get a brand new Perdana when price drop 30%. Hehehe
If thats the case then we ubah again
Gong, dont be stuck in the typical Malaysian & MAS mindset. Using your logic & analogy, AirAsia forever will never make any profits since they charge lowest rate possible? Where is MAS & AirAsia now?
Syabas2 Bapa Perjalanan Udara Tambang Rendah
In cash to the targeted group monthly or yearly basis. These will prevent abuse by all parties.
We seriously need to change our government. BN has been in power for way too long. Countries like south Korea which used to be equal to us, are now way ahead of us. In fact Thailand has also suppressed us. Mark my words, soon Indonesia will be ahead of us. The people there had the guts to vote for change.
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Car prices reduced by 30% as promised….
Ehh wrong side…Ooopss
yeah, i meant surpassed.
Our Ringgit has been one of the worst performing currency in South East Asia for the past couple of years. In fact the Thai Baht is now higher compared to the Ringgit! I still remember clearly when our money was higher than the thai baht and USD used to be only 2.5! Those were the good old days! We should be questioning why this has happened, but instead, we let religion and politics cloud our judgement. If we were to solely pick a government based on performance, it would be the end of BN.
be the end. it rhymes.
If we were to solely pick a government based of performance, it wun be PH either.
last year RM is one of the best performing Asian currency..fyi
Ringgit will never go back to the level that it once was as long as it’s not an internationally traded currency that is open to short-term hedging and speculation. This has nothing to do with government, even if you change government without removing these safety mechanisms that reduce the speculative appetite for the ringgit, our currency will not improve much compared to where it is now. Learn a bit of real economics instead of believing political propaganda hook, line and sinker.
The good old days was when Mahathir pegged the ringgit to 3.8 for years and then lost guts when to unpegged it….and if the RM is 2.5 today…our exporters all belly up bcos cannot compete with vietnam n indonesia…LOL
ha ha ha ha….Malaysia 2nd higher economy after Singapore
you live under the well..
Actually, your words are empty. Singapore is governed by what used to be the MALAYAN opposition. Learn your history before bashing others. And the Singaporeans are also looking for change if you study their voting tendencies in the last 2 elections. No political party/coalition should be in power for that long. In any case after so long, the incumbent government is only now offering this, that and the other to various parties, Sabah and Sarawak, all because they can feel a real threat to their hold on power. Is that really the way a government should function? Give goodies only out of fear and not out of duty to the electorate?
“suppressed “??? I think wanted to say “surpassed”.
U BN supporter need to wake up.
Wake up oredy still jilat. so how??
https://paultan.org/2011/12/27/indonesia-set-to-be-no-1-automotive-market-in-asean/
Indonesia No1 in ASEAN.
Set to be is different then already No.1.
Yes they can be the number one auto market…its bcos of their huge population…thats when we talk about market
Yes…they can be no 1auto market in asean if they can energize their economy…thats bcos of huge population…population is the factor in this case if we talk abt market…look at china…so if we cannot be no 1 auto market just accept the reality bcos our population is small…is singapore ever be no 1 auto market in asean…never…so thats explain abt it
well known fact thailand and indonesia has surpassed us. fake news that we are 3rd wealthiest country.
You saying South Korea is poorer than Malaysia?? Get real!
OME (Oh my english)
Pipu fat & cud overeat, equanomy doin great
spot on. Malaysia was supposed to be the Detroit of Asia. But because of cronyism and corruption, car companies in the 80s and 90s moved to Thailand.
We have lost hundreds of billions USD in investments. That is TRILLIONS. We lost all to Thailand. We also lost about 500,000 jobs. All went to Thailand.
30 years ago, Thailand was nothing. Now, it is the Detroit of Asia.
Blame it on mahathir…he decided the automotive policy back then
My in No.3 after Sg n Brunei. This have been table in Dewan Rakyat by KPDNKK. If not true, why PR not make any sound about it in the Dewan. They also silence when KPDNKK told that out goods price are cheaper then other ASEAN. Meanwhile those Country u mention have higher GST then My.
Dont be silly. Where u gonna get the money later on? Rather than abolish GST better just cut it down to 2% or increase 0% items.
You have a point there but PH also has many excellent economists. Our govt has ample of revenues not only from GST, can excise tax and petrol tax. Its just how it utilises the allocation. Remember, the lembu project was given 250 mil and after almost 10 years we see nothing. Except for several condos and a merc CLS. And many more cars unknown to us.
Before gst introduced, where do you think the gov get money from?..haha
The car GST is already taxed on top of excise duty which is basically a double taxation.
Then factored again on the car loan bank interest which is triple taxation!
This is Haram! Change ubah new government!!
Ubah in bangla means Flower. Flower powah!!
Tired of Ubah…its still the same…nothing change or ubah
SST. U don’t know?
Forgip him. He was born yesterday.
Sales and services tax (SST). Which the rate is higher than GST.
Read more and complaint less.
Sales tax
This fella…funny la…mustve been the class clown
Targeted fuel subsidy. How do they target and how to make sure only those who deserves it gets it and not abuse? No subsidy program have ever managed that. So why benefit those who dun deserve it esp foreigners?
The article conveniently omitted that they will bring back SST to replace GST. That means 10%+6% vs 6% standard rate. Gud luck trying to justify that.
Also they will create Protiga as replacement for the loss of P1.
About tolls, din they propose new tolled hiways?
The report merely outlined the pledges and promises being made, and stated very clearly quite a few times across the article that anything – and everything – becoming cheaper is subject to the proviso that there will be no return or reimposing of sales (and service) taxes that were imposed before GST came into play (which would be a bit far fetched, given that there’s a fair bit of money involved). There’s no crystal ball, so we can’t tell what will happen or whether there will be a return to SST in place of GST.
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no such thing. No need links as there is no such thing
You’re right, I missed that mention of the SST initially. Story has been updated accordingly.
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No one can tell what a potential change in the service rate may be, if it even comes to that. What I do know is that the service tax prior to GST was 6% for automotive-related services. I am sure of this because we cross-checked it while doing our GST story in 2015, and I still have vehicle service receipts pre-April 2015 that state 6% on it.
BTW Anthony. Anything can be done on the like/dislike system? It makes discussions unmanageable. Thx.
Might be my mistake, but I too have service receipts pre-date 2015 with 10% service charge added on top. I believe this is optional and some places have but others dun.
Paul Tan better have username system. Too many people doing fake likes and abusing your system
The targeted fuel subsidy quota based on Mykad has been proposed in 2014 but govt not implemented.
If Pakatan copy similar idea it’s interesting to know how they gonna do it effectively.
Maybe Paultan can revisit this idea and discuss it here.
Usage of mykad is flawed as anyone can borrow each others to fill up quota. Rich pipu or foreigners can pay Rm20 for Rm50 quota fuel. So how does it help gov to help the pipu? BR1M otoh….
Wow the MyKad doesn’t have biometric information recorded on it ah? Come on la, all they have to do is interface the JPJ network and the JPN network and they can target the subsidy purely to whichever qualifying driver is driving their legally owned and registered vehicle.
Nhoj, Read between the lines. GST is lower at 6%???
GST is wide based & multiple layer taxation (6%+6%+6%+6%+6%….) whilst SST is direct taxation @ 12% flat and restricted items only.
Between limited & direct taxation vs multi variate and multi stage taxation, which one will be more cheaper to majority Malaysian?
Before GST era, do you pay SST for Teh Tarik @ Mamak?
Think again & think harder John Doe
Now, is your life better after pay more tax?
Yes, before gst era we do pay sst for teh tarik. But it won’t be stated on your receipt. Unlike sst, gst is more transparent because we can see how much we pay to the gov. It needs to be transparent because it’s claimable.
I’m no fan of Najib, but this Mahathir-led PH is Barisan Nasional 2.0
There is no public consultation, like a roadshow, asking for feedback on what their aspirations would be. They just cooked this up behind closed doors assuming the people would accept this wholeheartedly. They don’t listen to the people. They’re BN all over again.
To talk about flaws in their manifesto is just not enough. The holes are as many as in the fishing net.
Targeted subsidy? You think the 2 millions taxpayers who are already footing the bills for the other 10 millions non-tax paying workers don’t deserve anything at all for their contributions?
Too many flaws. But my point is they don’t consult the people, and with Mahathir at the helm, we’re back to square one.
Cyber troopers please stay away.
“You think the 2 millions taxpayers who are already footing the bills for the other 10 millions non-tax paying workers don’t deserve anything at all for their contributions?”
Thats what GST aims to correct, but some wants to revert back to old system.
It has always been the case. See the few tax payers support the majority.
Those AP lords & Pr1ma cronies..Kakaka
Correct. And thats the problem with the old system. The few pays for the many and then grumble about it. But the current gov has done something about it, and bring a more equitable and fair system thats used in 160 and counting countries including down south.
Hahaha!
You may be right. But remember there’s significant of people went voting because they didn’t want Najib that’s all. We shall see what happens in the next 5 years
Dear Anthony,
If you can access to custom documents, you will witness that there are 2 GST figures apply. Kindly ask your friendly car salesmen to help, I understand its a bit difficult because most cars are registered online. Except for foreign brands, still registers manually at JPJ counter. The custom papers will be attached normally as well
The yellow one, look at the back. Then you will find 2 separate GST figures, instead of 1 sales tax of 10%. The game is on us. Tq BN.
I don’t think the price will fall with the abolishment of GST. Like before, oil price came up, goods prices also went up. Oil price went down, goods price remain.
True. Any side that win GE14 should target those who increase their price in view of increasing oil price. Make sure they reduce the price once the oil price drop. They (seller) want to use oil price as excuses to increase the price, so be sure to change the price everytime the oil price change. Not only when the oil price goes up
Businesses are too greedy
We all should give Pakatan Harapan a chance. No corruption no 1MDB, money will be spend wisely.
No politic party shld be given the power to rules eternally.
Kudos to MACC & KLCC.
No 1MDB corruption no doubt, instead u will have RM305Mil missing tunnel study report and Ijok land corruptions.
LOL no corruption with Pakatan!! This sentence wins the day. Is it April 1st already?
Hehe. That comment just won the internet this week!
GST doesnt need to abolish. Also who rule the country doesn’t matter as long as they can fulfill their promises to help rakyat and upscale the economy of the country. Use the GST income wisely.
U mean now, GST revenue not WISELY used?
You mean that the revenue was used wisely?
if my work performance in my company is the same as the government, i will be fired long time ago.
GST can be fund for infrastructure but GST is funded for corruption that is a big issue. If GST is implemented, we no need to have toll fare anymore because GST can cover the cost of damage. What im worry is that rather Malaysian had the opportunity in the future. If GST is to build up our security, our safety, our future health and education, i don’t even bother to have GST. GST is useful if the government create better future but GST is just for corruption, we are in the death end.
Pakatan pun nak bagi gula2. Kalau gst dihapuskan belum tentu harga akan turun, subsidi minyak pula sangat bahaya untuk negara yang banyak hutang luar. Lebih baik fokus kepada 1) pendidikan sama rata. Gunakan sistem macam germany. Pendidikan disubsidikan secara menyeluruh supaya takde orang yang tertinggal. Penyelidikan perlu ditambah dana supaya boleh dikomersialkan dan skill kemahiran kena diberi keutamaan. Sistem meritokrasi digunakan. 2) pecahkan monopoli. Beras, bahan binaan seperti simen dan pasir, internet dan balak perlu dipecahkan monopoli yang dah macam kartel supaya harga lebih kompetitif.
Pakatan should waive the ridiculous import duty, ap, beside gst. Then we’ll talk about the ballot box. Of course, excise duty, not forgetting. Rakyat is paying this excess cost to the banks.
Then how to sapot Protiga?
I dont mind keeping the GST…but give back some of important subsidies such as petrol. Middle class are the one affected the most. We pay tax PCSB monthly..we contributed the most to government…but what did we get in return ? Car still expensive. Petrol more expensive due to no subsidy, cost everywhere increased significantly due to GST effect and petrol hime and we dont qualify for BR1M…if i earn rm5000 back in 2005 i feel more than enough but what rm5000 can do now if i live in Lembah Kelang or nearby cities ? This is where BN fails…talking about high earning nation but how many really enjoy the living when everything went up and feels like benefits as Malaysian and tax payer gradually shrinking.
We need to try new party…we used the same for last over 50years…why wouldnt we not willing to even try and give chance for new one. Be smart guys.
Becoz the new ones have proven to be worse when gip a bit of power?
This so true. But changing new party don’t really give much different. All are from one root. Un satisfied ex umno member. Having same mould
Lastime in 2005, we had no IPhone, no android smartphone, people mainly use Proton/Perodua cars, development charge by state government was so low that the cost of new housing development was low as well, which in turn contribute to lower cost of LIFESTYLE. Nowadays, cost of LIVING is slightly higher than before, but cost of LIFESTYLE is has increased so much.
Excise duty kena potong mana?
Gst want to remain or reduce to 3% enough la
People want cheaper car la!!!
PH thinks businesses will declare their sales honestly if they reintroduce SST? Now lots of businesses butt hurt coz difficult for them to run from taxes. What is PH plan to plug these leakages from these unscrupulous businessman?
Get them donate to party instead. Huhuhu
Those big businesses that are hurting from being unable to cook their books ended up becoming Pakatan cronies.. if you’ve done business with such companies you’ll know.. they are bitching non-stop about it being harder to evade tax with GST system..
Agree on reduce GST and transparent all the Gov procedure and agenda. BN is overwhelm lord land for 50+ years poor Malaysian is losing behind after all. Is time for MALAYSIA awake from adverse nightmare.
Abolish all taxes for all private car below 1.8 litre, just tax a GST/SST on top of sales price.
I think cheaper car is ok, but make the cost of using the car more expensive. That is how it is in all other countries where cars are cheap. So people do own cars but use less often on the road, so there is less jam.
In 2010 when Datuk Seri Maglin dcruz was a deputy minister in the information ministry, he bulldoze thru te pengarahs and got work done..ForAll your infos..he was the man who mooted the red IC problem faced by Indians and others reap the fruits..He would have done more if he was a full minister..Malaysian need this kind of ministers..I know bcoz i was there.
Again with fuel subsidy and maintain the high price cars. No thank you then i would prefer the current one stay on.
PH should use United Kingdom as guideline. No need to implement fuel subsidies. PH should implement some new rule such as
1. Lower import tax for all range of car and remove AP for import car
2. Fuel price should remain fluctuation
3. Once car price reduce, insurance shall increase (this will improve driving attitude and reduce accident)
For my own opinion, if car price bring down like rm40k for a Toyota Camry/Honda Accord, we can have 40000liter of fuel to burn even the fuel price is rm4/Liter
If follow UK, then you must add congestion charge at RM11.50/day for every car that drives into KL. Then all older cars and diesel cars must be taxed heavily too. They do this because cars are highly accessible because they’re cheap and now they cannot solve their congestion problems. That’s also the reason why we get those recond cars with UK spec. It’s because they need to get rid of their cars which depreciate in value quicker.
No single system in the world is perfect.
U forgot to mention UK GST/VAT n income tax. Need to follow them too.
What you say? Who’s the opposition????
Will the government review the agreement made on the collaboration between Proton & Geeky!!!??? … or will Proton return to mummy to be milked again!!!???
For CBU car like Lexus, if SST 10% re-imposed after GST gone, would selling price increases or decrease?
HI,TUN MAHATHIR N THE MINISTERS IN THE PH GOVERNMENT, I WOULD LIKE TO HIGHLIGHT THIS ISSUES OF GST! THE GOV TOLD US, THE CITIZEN OF MALAYSIA THT THEY HV ABOLISHED THE GST SINCE THE 1ST OF JUNE, I EXPECTED THE PRICE TO HV DECREASE NOW THT THERE IS NO GST! BUT IN REALITY, THE OPPOSITE IS HAPPENING! THE PRICES OF GOODS, INSTEAD OF DECREASING, IT IS INCREASING ESPECIALLY IN OUR AREA’S COFFEE SHOPS, HOW COME? I DONT UNDERSTAND IT! CAN SOMEONE EXPLAIN TO US WHY IS IT HAPPENING THT WAY PLS? THANKS! GOD BLEES U!