SST will return in two to three months’ time – Tun Daim

SST will return in two to three months’ time – Tun Daim

As previously reported, the new government has announced the current goods and services tax (GST) will be revised from 6% to 0% on June 1. This will be followed by the reintroduction of the sales and service tax (SST), and it has now been revealed that such a move will take place within two to three months.

This is according to Tun Daim Zainuddin, head of the government’s Council of Eminent Persons during a recent press conference. “SST can be established in two, three months,” he said, according to a report from The Edge. Daim didn’t explicitly state from when the timeframe will begin, but it is likely an ongoing process – GST zero-rated will apply till then.

He added that the return of the SST is estimated to raise approximately RM30 billion and will mitigate the loss from GST collection. However, he did not disclose what the SST rate will be, which was previously set at 10%.

With this revelation, consumers will enjoy a relatively lengthy “tax-free window” after June 1 until the SST comes into effect, with many car companies already releasing updated price lists sans GST. This includes UMW Toyota, Volkswagen Passenger Cars Malaysia (VPCM), TC Subaru and BMW Group Malaysia, where price reductions on all models are realised, although not all at precisely 6%.

Keep in mind that there is a likelihood that the implementation of the SST might result in car prices going above the GST zero-rated prices being offered from June 1, but we’ll have to wait for the exact SST rate to deduce anything further. For now, will you be looking to take advantage of the GST-free pricing?

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Chockz on May 18, 2018 at 6:08 pm

    wait for the Boyue soon.

    Like or Dislike: Thumb up 8 Thumb down 2
    • Panorama on May 18, 2018 at 7:59 pm

      Same here.

      Like or Dislike: Thumb up 0 Thumb down 0
    • New Government New Hope for 30% on May 18, 2018 at 8:10 pm

      I rather wait. With a good Government now, our ringgit will strengthen, thus eventually after a year, prices should fall further

      Why buy now when there is turmoil and just only the Government has changed. A bit kelam kabut now.

      Many korup will go to jail. Sales of cars also will drop a lot cause many have no free flow of money to use to buy cars.

      Previously a lot of money easy come easy go. Immediately people splash on cars. You cannot deny, a huge proportion of cars in Malaysia is bought with corrupted money. Now, corrupted money has stopped…..car sales will be first to be affected

      This is demand and supply. Car prices will fall substantially cause now, people have to work hard for their money. And they will think many times before buying a car.

      During dirty days, money easy come, easy go. Besides Honda and Toyota, even Porsche and Ferrari sales also melambung

      Don’t underestimate what a clean up does. Many potential buyers also now cannot afford because they have lost their jobs or lucrative contracts from the previous Government

      Lots of kronies have lost their free money.

      Like or Dislike: Thumb up 10 Thumb down 32
      • Do you think Ringgit will strengthen by how many percent to mitigate price rise in cars due to SST? 10%? 20%? And does that even translate into price reduction? Some wishful thinking.

        Don’t be a fool. Buy a car now.

        Like or Dislike: Thumb up 15 Thumb down 5
    • Haha.. with Tun coming back into picture, whether your boyue can see the light or not remains a question.

      Like or Dislike: Thumb up 3 Thumb down 1
      • Christopher on May 19, 2018 at 3:06 pm

        First thing Tun M will do when all his more important duties finish is to scrap the Boyue deal.

        He will ask….sell 49.9% of Proton for RM170 million despite pumping over RM20 billion into the company?

        Like or Dislike: Thumb up 0 Thumb down 0
  • turborider on May 18, 2018 at 6:12 pm

    Since SST effective date delayed, i hope Paultan can write another gst removal article on used/recon cars.

    This is very useful information for all consumers who looking for used/recons cars.

    Like or Dislike: Thumb up 18 Thumb down 1
  • Mohan on May 18, 2018 at 6:27 pm

    The lost decade from 2008 to 2018.
    Malaysia will rise again!!

    Like or Dislike: Thumb up 23 Thumb down 8
    • Wait for 5 yrs then UBAH!

      Like or Dislike: Thumb up 5 Thumb down 21
      • Christopher on May 19, 2018 at 3:03 pm

        Your party is dead for at least 3 more elections bro. Face it. Stained with corruption

        Like or Dislike: Thumb up 7 Thumb down 2
        • Bye Bye Potong on May 19, 2018 at 4:52 pm

          Are you sure 3 more? My wise bomoh said at least 30 elections to come..which mean until the end of the day or whichever comes first.

          Like or Dislike: Thumb up 5 Thumb down 0
          • Petoron Sagu on May 20, 2018 at 8:41 am

            Betoi. takkan proton hilang di dunia…

            Like or Dislike: Thumb up 3 Thumb down 0
  • Jimmy on May 18, 2018 at 9:40 pm

    For those who really need new cars, this is probably the best time to buy, provided that car dealers do not withdraw their existing discounts/offers.

    Like or Dislike: Thumb up 7 Thumb down 0
  • Dum dumm DUMMMM!

    Like or Dislike: Thumb up 1 Thumb down 9
  • safian on May 19, 2018 at 12:40 am

    No GST is better! ini mau cucuk kad ATM pun kena GST 6%. We not buying a car every month but we use ATM card every week.

    Like or Dislike: Thumb up 6 Thumb down 3
    • Birdie on May 19, 2018 at 1:12 pm

      Why bodo? Why cucuk duit kat bank lain? Cant you read whats written on your card? Your bank name? Or are u living in the middle of the jungle? Where there is only 1 meps atm machine? Why so bodo?

      Like or Dislike: Thumb up 5 Thumb down 14
  • realdeal on May 21, 2018 at 9:31 am

    pun an end to govt approved price. make the car companies actually compete to win the hearts of consumers. it is freaking illogical.

    Like or Dislike: Thumb up 1 Thumb down 0
 

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