Vehicle prices could go up following the return of SST

Vehicle prices could go up following the return of SST

With the good and services tax (GST) set to be revised to 0% from 6% on June 1, Malaysian car buyers are enjoying lower vehicles prices with many companies already announcing revised price lists.

This “tax-free” period will remain in effect until the reintroduction of the sales and services tax (SST), which may put an end to the “good times.” Recently, finance minister Lim Guan Eng revealed the SST will be set at 10%, the same rate it was when it was replaced by the goods and services tax (GST) in April 2015

According to industry players, this may result in prices being pushed upwards again, even beyond GST-inclusive prices. In a report by NST, Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said, “before GST was implemented, SST was 10%. If we consider this figure, we expect the prices of vehicles to increase, post-SST. This is an easy estimate if the rate is the same.”

The MAA is expecting the government to lower the SST to be lower than GST (6%) in order to lower vehicles prices further to promote buying. “We look forward to the government’s decision on SST. When GST was implemented, car prices decreased slightly,” she noted.

Vehicle prices could go up following the return of SST

Meanwhile, Perodua are unable to confirm if its vehicle prices will go up or down when the SST is implemented. Its president and CEO Datuk Aminar Rashid Salleh said it was too early to speculate on the matter, and the company will need to meet with relevant stakeholders for further details.

“We will prepare for the implementation of SST and we are awaiting the government’s decision on when it will take place,” he said. In a previous report, Tun Daim Zainuddin, head of the government’s Council of Eminent Persons, stated the return of the SST will take place within two to three months.

In light of this, will you be purchasing your vehicle within the GST-free period, or will you hold out until SST-inclusive prices are revealed?

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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

  • arowana on May 28, 2018 at 12:59 pm

    Malaysian car buyers are willing to pay more.

    To rebuild a new Malaysia, saddled with gigantic debts left behind by corrupted old govt.

    Like or Dislike: Thumb up 24 Thumb down 70
    • Jajaja on May 28, 2018 at 2:27 pm

      Said who? I don’t want. We vote them to solve our country problem. Its not my job to help them.

      I just want cheaper price car, RM1.50 ron95 per Liter, abolish PLUS toll..

      You want pay more? You pay sorang2 la..

      Like or Dislike: Thumb up 94 Thumb down 53
      • Richard Sambrani on May 28, 2018 at 2:57 pm

        If the country was financially okay, I am sure SST too would have been abolished. It is just that Pakatan got a shock of their lives when they saw the country has 1.1 Trillion debt. This was covered up so that rakyat won’t know the past 10 years

        So, sadly, Pakatan has to introduce SST to get some money to repay this ugly debt left to Pakatan to sort out.

        I for one am willing to pay SST as I love my country and I want my country debt to reduce from 1.1 Trillion. I don’t want my country to be like Venezuela…rich in oil but bankrupt

        Like or Dislike: Thumb up 35 Thumb down 73
        • I rather pay GST than SST. At least it’s transparent and i know traders have no way to under-declare their income and over-declare their cost.

          Well-loved. Like or Dislike: Thumb up 79 Thumb down 14
          • In MY, there’s nothing is transparent. Put a transparent system like GST in a corrupted country and u will end up with the rich getting Birkins.

            Like or Dislike: Thumb up 25 Thumb down 32
          • shawal on May 28, 2018 at 6:02 pm

            LHDN rajin tangkap! Oooo

            Like or Dislike: Thumb up 8 Thumb down 1
          • Macai BN spotted. want GST go to developed countries.

            Like or Dislike: Thumb up 12 Thumb down 35
          • MabuKoolaid on May 28, 2018 at 7:51 pm

            Delusional sore macai.

            Like or Dislike: Thumb up 0 Thumb down 0
          • U like GST? U can always move to Sg where they will soon implement 9% GST. I’m sure u will luv it when shopping there.

            Like or Dislike: Thumb up 2 Thumb down 1
        • Khalid on May 28, 2018 at 4:03 pm

          Venezuela ???

          The problem with Venezuela is that they got a president who was formally a BUS DRIVER succeeding the previous president Hugo ( died ) .

          This Man knows nut about handling country economy but he only knows how to bully , silent opposition , silent majorities , wriggling and gerrymandering the election , puppet to Cuba Castro government and corruption to the core.

          Now he cheated the election again to remain in power for the second term. Luckily Malaysia was saved on May 9 from becoming Venezuela 2.0

          Like or Dislike: Thumb up 25 Thumb down 16
          • Ryder707 on May 28, 2018 at 6:08 pm

            Yupe. Luckily Malaysia was saved on May 9 and now becoming Germany 2.0

            Like or Dislike: Thumb up 26 Thumb down 9
          • Yet now we have an Excel calculation failure as the FM. Whats so strange about the bus driver now?

            Like or Dislike: Thumb up 17 Thumb down 10
          • john penipu on May 28, 2018 at 8:28 pm

            Excel calculation failure? Where? Another of ur lies?

            Like or Dislike: Thumb up 0 Thumb down 1
          • Rightwinger on May 28, 2018 at 8:43 pm

            Ryder, you do know Germany is now Germanistan?

            Like or Dislike: Thumb up 11 Thumb down 5
          • kaler on May 29, 2018 at 8:45 am

            Banglasia, thx bagan datuk

            Like or Dislike: Thumb up 0 Thumb down 0
          • We also have an accountant who only knows how to invest in handbags as ex PM’s wife. Whats so strange about the bus driver now?

            Like or Dislike: Thumb up 1 Thumb down 0
        • yyohan on May 29, 2018 at 11:51 am

          Stupid. Who want pay more if u can pay less.

          Like or Dislike: Thumb up 3 Thumb down 0
          • Agreed. Why pay more? I dont’ care how the ministers want to do it but they’ve promised before the PRU.

            Like or Dislike: Thumb up 0 Thumb down 0
    • We vote for a government so that we have to pay less and live a better life no? We voted out GST to reduce cost of living now u come out and say we don’t mind paying more? don’t ‘we’ us all lah. speak for yourself only.

      Well-loved. Like or Dislike: Thumb up 83 Thumb down 19
      • Let the basher earn his kupang lar Bro. Kecian dia sikit.

        Like or Dislike: Thumb up 35 Thumb down 6
        • Too bad ur party kalah and u are only eating on the leftover breadcrumbs. Can only bash the gov here and there. Kecian.

          Like or Dislike: Thumb up 1 Thumb down 3
      • bersih on May 28, 2018 at 11:00 pm

        U want everything to be free? Then u better undi back BN. Pakatan can’t give everything for free.

        Where do u think the trillion dollar debt came from? Where do u think the RM114 million found in previous PM’s house came from? Where do u think the 284 boxes of designer bags in his house came from? It all came from the pocket of rakyat.

        We want a corruption free nation, not a everything is free nation.

        Like or Dislike: Thumb up 7 Thumb down 2
    • proton on May 29, 2018 at 11:39 am

      i prefer proton

      Like or Dislike: Thumb up 2 Thumb down 2
    • steven on May 30, 2018 at 2:26 am

      Luan-Luan kong. See what happening to Malaysia bursa saham performance? Down,down,down…. All fitnah talk, once sst implement, all goods Price High Lah,bro

      Like or Dislike: Thumb up 3 Thumb down 2
  • Bernard on May 28, 2018 at 1:04 pm

    SST is the way forward. Support the move.

    Doesnt matter if prices go up slightly. Short term inconvenience for long term gain.

    Like or Dislike: Thumb up 13 Thumb down 74
  • It depends how much margin the car company is Making:
    1) if the margin is same with the government approved selling price, then i will prefer 10% SST and not 6% GST
    2) if the margin is approx 60% (or lower) of the government approved selling price, then i will prefer GST 6% and not 10% SST
    So how much margin car company Is making now? We can roughly guess by compare oversea car price n malaysia price, and you will know which case above should be happen

    Like or Dislike: Thumb up 10 Thumb down 5
    • Yang mahal on May 28, 2018 at 7:41 pm

      Thanks to kastam, our car price up 200%~300%

      Like or Dislike: Thumb up 4 Thumb down 6
    • Jaolkai on May 29, 2018 at 8:36 am

      In business, nobody wants to lower the margin. What… you think The business owners so stupid? The foreign investment comes to Malaysia because they want to make more money laa… if they can make good profits in Malaysia, there are many other neighbouring country where they can choose to invest.

      Like or Dislike: Thumb up 1 Thumb down 0
  • Sohai on May 28, 2018 at 1:27 pm

    Maybe it’s time mrlye to upgrade the crampy mazda 2for a bigger one …? Isn’t …

    Like or Dislike: Thumb up 2 Thumb down 0
  • Cukup la PT ....harga kereta tetap murah on May 28, 2018 at 1:31 pm

    So wat…who buys new cars these days man..even if they do amortised over 5 to 9 years its peanuts…our car prices is the lowest in asia…syukur la kerajaan perihatian…masalah lebih critical adalah rasuah…sampai rumah pun penuah degn cash…masalah rasuah dan cokalat lebih critical …terimakasih

    Like or Dislike: Thumb up 9 Thumb down 34
  • old dog on May 28, 2018 at 1:38 pm

    up or down, car is depreciation,and not investment, and young people should learn how to save…many of us started with used car at the beginning, and the interest rate is 5% at least.. and shoot to 10% during 1997 financial crisis..
    Spend more into improving own knowledge and experience…not your monthly salary into car and phone..

    Like or Dislike: Thumb up 34 Thumb down 1
  • Eternalgl0ry on May 28, 2018 at 1:45 pm

    Lol it shouldn’t price hike because it will stupid to buy a brand T or H c segment at 150k. Might as well buy a suv

    Like or Dislike: Thumb up 7 Thumb down 1
  • Murtabak on May 28, 2018 at 1:49 pm

    Ah they’re saying this because they want us to buy their cars. Still expensive la the cars here

    Like or Dislike: Thumb up 8 Thumb down 1
  • Why can’t the new government set vehicles SST ceiling to only 5% instead

    The rest can hoover between 5% to 10%

    LGE is just plucking from previous SST 10% to the new SST 10% as the determining value . Why can’t LGE do more research as to determine the correct SST % ?? AFTER abolishing GST otherwise it make no sense at all..

    Like or Dislike: Thumb up 35 Thumb down 3
    • polla on May 28, 2018 at 2:17 pm

      So, “barang turun kerana GST” seems true but applicable only to vehicle purchases, LOL. Yes, SST should be 6% too.

      Like or Dislike: Thumb up 17 Thumb down 1
  • heybadigol (Member) on May 28, 2018 at 2:25 pm

    Lucky for those who are already hunting for a new car if they can get a car during this GST/SST free period. As for me, have to wait a few more years, as I tend to sell my old car to be replaced by the new car. And I don’t have any reason to sell the current car. Still love driving it even though its already a few years old. But at least I can get new tyres during the tax free period. Maybe some new rims too. Too bad my insurance and road tax renewal is still a few months away. Otherwise can get some savings there too.

    Like or Dislike: Thumb up 5 Thumb down 0
  • pengguna proton kecewa on May 28, 2018 at 2:25 pm

    SST benefits the chain of production and not sales as standalone activity. In theory cost of production should be cheaper-locally manufactured would benefit from it. Imported car should be more expensive

    Like or Dislike: Thumb up 2 Thumb down 2
  • tokmoh. on May 28, 2018 at 3:48 pm

    Bila GST turunkan harga, marah hilang RV.

    Bila SST naikkan harga, kenapa tak puji kerajaan?

    Like or Dislike: Thumb up 21 Thumb down 2
    • gahpadu on May 28, 2018 at 6:04 pm

      Syabas kerajaan! RV go up!!

      Like or Dislike: Thumb up 6 Thumb down 0
    • Bila harga naik, salahkan Gov dulu.
      Skarang harga lagi naik, apa nak kata lagi?

      Like or Dislike: Thumb up 28 Thumb down 7
      • Korean Fan on May 28, 2018 at 8:17 pm

        Sekarang harga naik dia kata dia don’t mind sebab nak selamatkan negara

        Like or Dislike: Thumb up 2 Thumb down 0
      • Sudahkah ianya belaku? kalau sudah baru u org F lah.. if u r so pro, u go n become the next PM ya… see how gd u r, with ur otak udang..

        Like or Dislike: Thumb up 0 Thumb down 4
  • Ayam Goreng Bazar on May 28, 2018 at 4:07 pm

    Now is the best period to buy/invest 2-3 cars once it hits zero rate GST. keep/store/rent till SST hits then sell it with a profit

    Like or Dislike: Thumb up 2 Thumb down 3
  • Mr. Octopus on May 28, 2018 at 4:43 pm

    GST affects prices for almost everything, including what the people need.

    SST will affect prices of things people want.

    You will pay slighly more for a car with SST but everything else, especially things you need to survive day by day should become cheaper/more affordable.

    Like or Dislike: Thumb up 18 Thumb down 12
  • Jimmy on May 28, 2018 at 5:00 pm

    1. if car distributors/dealers are not greedy, the prices of cars can be maintained when SST sets in. Some of them silently increased prices by a few thousand ringgit even thought ringgit strengthened since the last 1 to 2 years.

    2. If Pakatan really go serious, even prices of private houses & apartments can potentially go down by 10 to 20 %. Do you know what was the cost of a signature to each house or apartment during previous dynasty? That signature was and is even more costly than your red bricks used.
    3. Do you know that account officers working for developers and contractors are pretty well paid, generally above industry average? They are instructed to shift here shift there to make things difficult and complicated. They are paid to be prepared for ‘raids’ as well.

    Like or Dislike: Thumb up 4 Thumb down 1
  • Momok on May 28, 2018 at 5:08 pm

    Harapkan Pagar.. Pagar makan Padi.. hadooiiiiii.. BolehLand! This side say GST bagusss, this side say SST bagusss… Rakyat said NO TAX lagi bagussss

    Like or Dislike: Thumb up 22 Thumb down 1
    • Rakyat dah kena con by the biggest conman lor, now sengsara for next 5 years.

      Like or Dislike: Thumb up 22 Thumb down 9
      • john connor on May 28, 2018 at 11:11 pm

        Yeah, the biggest conman is the one who has millions of cash, gold bars and hundreds of luxury bags found in his house. Deswai rakyat sudah sengsara for 60 years

        Like or Dislike: Thumb up 0 Thumb down 2
  • Not across board but something staggered like below. GST 0% on food and nessecities items is a must.

    For vehicles, bicycles, motorbikes under 150cc, Class A cars 0%,

    Motorbikes under 250cc and Class B cars for mass maybe just 1%,

    Motorbikes under 500cc Class C cars 3%

    Motorbikes above 500cc and Class D car above 6%

    Like or Dislike: Thumb up 7 Thumb down 1
    • xdato noah on May 30, 2018 at 8:41 am

      Berapa banyak cukai daaa.
      rakyat miskin pon kena cukai koo
      oku pon kena jugak kaa
      anak ramai pon bayar jugakk
      negeri maju ini macam kaaa
      ANTI BULI MALAYSIA

      Like or Dislike: Thumb up 1 Thumb down 0
  • Otak Udang on May 28, 2018 at 8:18 pm

    Hey… how do you know vehicle prices will go up after implementing SST? It’s medical miracle you found out!

    Like or Dislike: Thumb up 0 Thumb down 1
  • Fikri on May 29, 2018 at 4:41 am

    The govt can reduce market price by reducing taxes for vehicles. Common that simple.

    Like or Dislike: Thumb up 0 Thumb down 0
  • cloud on May 29, 2018 at 6:00 am

    If the price going up, why not just retain the GST rather than implement 10% SST. I don’t get it. In GE13 PH/PR marketize to have lower car, maybe in GE14 didn’t emphasize about it but why wanna introduce tax system that’s going to cost more to rakyat compared to current. If the GST words already “sounds bad” due to najibness stigma, why not use SST or VAT but at lower percentage compared to existing GST rate rather than introduce 10% SST.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Amran on May 29, 2018 at 6:09 am

    But bapak p1 said proton cant sale cheap..

    Like or Dislike: Thumb up 0 Thumb down 0
  • hyin21 on May 29, 2018 at 12:14 pm

    The country’s economy is not all about cars only

    Like or Dislike: Thumb up 1 Thumb down 0
  • Maximov on May 29, 2018 at 1:05 pm

    Classic “fear of missing out” scare tactic being employed by MAA here. After all, it is in their and their members’ interests to push people into buying now rather than later. Nothing wrong w doing this of course, since free market applies.

    What we need is to continue breaking down idiotic govt regulation, excessive duties and of course, AP.

    In a deregulated and non-govt-sanctioned monopoly environment, only then will the consumer win.

    SST may or may not increase prices, but we do know it is not nearly as wide ranging a tax as that of GST i.e. fewer goods fall under SST tax.

    Employ common sense, and above all remember this: paying nothing for something you don’t need beats paying a discounted price for something that you simply want. Spend wisely in a tight economy.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Dulu sst 10% + gst 6% = 16%.
    Skrg Sst 10%+gst 0% = 10%..
    Yg mana lg bagus..?

    Like or Dislike: Thumb up 0 Thumb down 0
  • CyberSephix on May 30, 2018 at 5:43 am

    The price of the car should be the same before gst implemented because before this sst is already implemented. So why would they think there will be an increase of car price? The manufacturer is the one who will take this chance to sell the car at higher price actually. Not because of sst.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Add A Comment on May 30, 2018 at 8:00 am

    What if we tackle the core of the pricing? The Gov approved selling price? Maybe our new gov will approve a 30% cheaper selling price, then even with 20% SST the car price will still be cheaper….

    – I Have Just Added A Comment –

    Like or Dislike: Thumb up 0 Thumb down 0
  • IGP mom on May 30, 2018 at 10:02 am

    I don’t think after SST, the car prices will be higher, unless the govt approved initial car price stays the same. However, with the removal of GST, which is a form of layered tax, the govt approved initial car price should be significantly lower. In this case, the resultant car price after should be lower even on top of SST.

    Like or Dislike: Thumb up 0 Thumb down 0
  • We pay:
    1. High car prices as a result of high duties
    2. We get charged of high interest which eventually will be income to the banks and transferred to GLCs as dividends which again eventually be income to the government
    3. We pay fuel which the calculation is not transparent.
    4. We pay GST (during Ahmad MAslan’s time) and later convert to SST
    5. We pay goment tax.
    6. We pay insurance and road tax.

    I am already supporting my government….

    Like or Dislike: Thumb up 1 Thumb down 0
 

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