Finance minister Lim Guan Eng has announced that the bill on the sales and services tax (SST) will be passed in parliament in August, paving the way for its reintroduction in September, as previously announced. Its return will mark the end of the “tax holiday” enjoyed since June 1 when the goods and services tax (GST) was zero-rated.

He reconfirmed that SST will have its rate set at 10% for sales and 6% for services, according to the New Straits Times. This is identical to the rate it was when it was replaced by GST in April 2015.

From an automotive viewpoint, car prices came down when GST took over from SST, but could possibly go up higher than GST-levels with the reintroduction of SST, according to the Malaysian Automotive Association (MAA).

“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,” MAA president Datuk Aishah Ahmad has said in May.

Vehicle sales during this tax-exempt period have been brisk, so much so that while there’s still more than a month to go before SST returns, car companies are starting to report that levels of deliverable stock are being exhausted or have run out, such is the spike in demand.