The sales and services tax (SST) will be reintroduced in September. This was revealed by prime minister Tun Dr Mahathir Mohamad at a press briefing today following a cabinet meeting. The return of SST will require legislation to be enacted in parliament.

It has been announced previously that SST will be set at 10%, the same as when it was replaced by the goods and services tax (GST) in April 2015. GST will be zero-rated from June 1, which means that the “tax holiday” will last for three months.

All automotive players have released car prices with zero-rated GST, and the prices are lower. However, car prices could possibly jump back to a level higher than present with the reintroduction of SST, according to the Malaysian Automotive Association. This is expected, as car prices came down in April 2015 when GST took over from SST.

The time is now, as the carmakers would say.