Car buyers are currently enjoying a “tax holiday” with the goods and services tax (GST) rate currently set at 0%, which has resulted in prices being lower than before. However, many are wondering what will happen to car prices when the sales and services tax (SST) makes its return on September 1, and if they should make their purchase now.
According to Proton, now is the best time for consumers to purchase a new car, before the implementation of the SST. Citing Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad (and other sources), Proton believes car prices could go up with the return of the SST.
In May this year, finance minister Lim Guan Eng announced that the SST rate would be set at 10%, the same rate it was when it was replaced by the goods and services tax (GST) in April 2015. Later on, the MAA said it expected the government to set the SST to be lower than GST (6%) in order to lower vehicles prices further to promote buying. The MAA president also noted that the introduction of the GST a few years ago did have an impact at reducing car prices.
On the topic of the used car market, Proton stated that sellers generally absorbed the GST amount, and that prices won’t be affected by zero-rated GST. While consumers might view the used car market as more appealing, the processes of buying a used car could be more cumbersome due to the potential difficulty in getting loan approvals and high interest rates.
What do you think will happen to car prices following the implementation of the SST? Share your thoughts in the comments section below.
AD: Drive the Proton model of your dreams. Submit your details and Proton PJ will get in touch with you.
Looking to sell your car? Sell it with Carro.
Proton X90
from RM106,800 
Proton S70
from RM73,800 
Proton eMas 7 PHEV
from RM109,800 
Proton X70
from RM106,800 
Proton Saga
from RM38,990 
Proton eMas 5
from RM59,800 
Proton X50
from RM89,800 
Proton eMas 7
from RM103,800 
anonymous
on 
theanswer
on 
C.P. MOHAN
on 
Udon’tsaybro
on 
Not Toyota Fan
on 
john
on 
Shem
on 
john
on 
Dong gor
on 
Ruslan Bahari
on 
7yrsold
on 
Vic
on 
ioma
on 
Same L0rr
on 
creep
on 
notakata
on 
kzm (Member)
on 
Camtakpro
on 
Mikey
on 
Diamler
on 
stastasta
on 
born
on 
Royston
on 
Denny
on 
fuad
on 
One Cent Point
on 
Olala
on 
Shaheen
on 
QWHZ
on 
toyota no fan
on 
M.khairun
on 
Mohd Izwan Dato Zakaria
on 
Ross Lee
on 
Ace
on 
West Wing
on 
Anonymous111
on 
Ollie
on
AI-generated Summary ✨
Comments express concern that car prices will rise after SST's return, with some believing Proton's prices will increase while others think Proton may absorb the taxes to keep prices stable. Several comments criticize Proton's quality issues, safety features, and management, highlighting poor experiences and questioning their competitiveness. There is also a common sentiment that tax-heavy policies and import restrictions hurt Malaysian consumers, and some suggest boycotting or delaying purchases if prices rise. Overall, the tone is skeptical about price stability and Proton's future competitiveness.