SST bill to be passed in Parliament in August – rate to be set at 10% for sales and 6% for service, as before

SST bill to be passed in Parliament in August – rate to be set at 10% for sales and 6% for service, as before

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.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Susukotak on Jul 16, 2018 at 7:22 pm

    haha

    Like or Dislike: Thumb up 26 Thumb down 1
  • lolol on Jul 16, 2018 at 8:29 pm

    Hmm….. thought the idea is not to burden the rakyat… now we have 2 taxes?!?! Looks like we are set to pay hefty prices for everything we consume…. sigh…

    Like or Dislike: Thumb up 41 Thumb down 11
    • rightwinger on Jul 17, 2018 at 8:22 am

      PH = Price Hike

      Like or Dislike: Thumb up 16 Thumb down 0
    • autodriver (Member) on Jul 17, 2018 at 8:43 am

      It is same logic as before, SST is applied on product in earlier stage where consumer won’t see the actual tax. Service tax 6% is applied on “service”, such as purchase tyre and we need installation, SST is charged on tyre (no tax revealed) and for labour fee their will apply 6% service tax. This is exactly same structure before GST implemented on 1st Apr 2015.

      Btw GST is “rolling” basis where the more layers in sales chain the more the consumer pay. SST is somehow charge on 1st stage only. So in SST basis consumers may expect to save probably 1-3% compared to GST, not completely 6% exempted as this will be considered as tax free.

      Like or Dislike: Thumb up 17 Thumb down 21
      • If there are more layers in sales chain, why after the GST is rated at 0% AT ALL LAYERS there is not so much different in price?

        Like or Dislike: Thumb up 17 Thumb down 0
      • No wonder on Jul 17, 2018 at 1:39 pm

        Still people think GST is a rolling tax! Sigh! No Wonder…. No Wonder…..

        Like or Dislike: Thumb up 15 Thumb down 2
      • Rightwinger on Jul 18, 2018 at 1:09 pm

        Really meh? Then how come car prices expected to increase slightly higher than during GST?

        Enough with the BS la.

        Even Singapore’s Straits Times associate editor Vikram Khanna described the move to axe the 6% GST as driven more by “populist politics than by sound economics”.

        Like or Dislike: Thumb up 1 Thumb down 0
    • Rakyat got kencinged for next 5 years. Golden future? More like golden shower.

      Like or Dislike: Thumb up 16 Thumb down 4
      • Robinhood on Jul 17, 2018 at 3:47 pm

        When they want your votes, they will promise everything. But after they got your votes,…….

        Like or Dislike: Thumb up 7 Thumb down 0
    • must look at the bigger picture on Jul 17, 2018 at 10:12 am

      as a rational Malaysian, we must look at the bigger picture. you are not going to buy car every year. whatever tax system will not comfort you as it aimed to balance nation income and individual income. the crucial part is how government utilize the collected tax.

      Like or Dislike: Thumb up 19 Thumb down 14
      • The gov will utilise it to make a 700m tower just cuz PNB118 will eclipse his KLCC baby.
        Wastage? Check.
        Unnecessary? Check.
        Kleptocronysim? Check.
        Money spent when complaining no money? Check.
        Malaysian people stupid enough to vote for this? Check.
        Macais coming here to justify lame decision? Check check.

        Like or Dislike: Thumb up 1 Thumb down 1
        • must look at the bigger picture on Jul 19, 2018 at 4:48 pm

          As spoken, we must look at the bigger picture. A project is merely a development. How to manage the project is another say. If another side of voters are clever, wont we became a developed country in less than 60 years? Cash is king era was passed, hopefully we dont invite this management style to come back in future.

          Like or Dislike: Thumb up 0 Thumb down 0
    • “GST, unlike sales tax or service tax, is a multi-tier consumption tax which will be applied at every stage of the distribution/ supply chain.”

      You are already paying for jacked up prices all the way from manufacturers. Enjoy your tax holiday because BN govt sure ain’t giving you one!

      Like or Dislike: Thumb up 4 Thumb down 9
    • GeeSST on Jul 17, 2018 at 9:18 pm

      So…. does that mean when buying a car… the car get taxed 10%… then Insurance, Processing Charges, Registration all will have 6% Services Tax.. and service car also has 6% tax. How different is that?

      Like or Dislike: Thumb up 1 Thumb down 0
  • Good then la..

    Like or Dislike: Thumb up 0 Thumb down 5
  • John May 9 Nangis on Jul 16, 2018 at 8:36 pm

    Malaysians are very happy to pay SST even if it makes car prices higher. This is because we know, all money collected by the Government goes to rebuilding the nation instead of buying Birkin handbags and diamonds.

    Like or Dislike: Thumb up 63 Thumb down 89
    • rightwinger on Jul 17, 2018 at 8:23 am

      lol mental gymnastics…

      Like or Dislike: Thumb up 9 Thumb down 0
    • This new Gov only talks about money money money. Even their cybertroll nonstop talk about noney. More money for Kawans but not the rakyat. Only those with money can survive and the rich prospers. Others less fortunate will be discarded and forgotten. Cruel tis New MY!

      Like or Dislike: Thumb up 15 Thumb down 7
      • Dedak oh Dedak on Jul 17, 2018 at 2:16 pm

        dont worry john, no more dedak. You have to work like all of us from now on

        Like or Dislike: Thumb up 0 Thumb down 0
    • John Doe on Jul 17, 2018 at 10:46 am

      Hahahahaha….b**ls**t

      Like or Dislike: Thumb up 11 Thumb down 1
    • Damon Lee on Jul 17, 2018 at 12:36 pm

      Still trying to justify for his masters. Such obedient macai.

      Like or Dislike: Thumb up 11 Thumb down 2
    • rightwinger on Jul 17, 2018 at 12:47 pm

      sorry mate, Malayzians voted for LOWER TAXES and LOWER PRICES, Birkin bags notwithstanding.
      dont put words into our mouths.

      Like or Dislike: Thumb up 10 Thumb down 3
  • AutoFrenz (the original) on Jul 16, 2018 at 9:49 pm

    Yes this is what we want…the higher the better…so we are paying more for cars…so what as long we have clean govt…(sarcasm intended)…kahkahkah…kena tipu kaw2…

    Well-loved. Like or Dislike: Thumb up 63 Thumb down 9
    • New Malaysia, new mentality.. Kena kencing also no problem already. :-)

      Like or Dislike: Thumb up 10 Thumb down 0
      • Basher enjoyed the golden shower from their leaders so much that they promo hard to the rakyat as well.

        Like or Dislike: Thumb up 0 Thumb down 0
  • Anonymous on Jul 16, 2018 at 10:04 pm

    Your graphics did not show that INSURANCE as a service will be subject to 6% ServIces Tax under The new SST regime.

    So… 6% GST ‘membebankan’ rakyat so instead we get 10% taxed. Brilliant!

    Well-loved. Like or Dislike: Thumb up 53 Thumb down 3
  • Mbappe on Jul 17, 2018 at 1:49 am

    As long as you don’t print it on the receipt it’s find for me..

    Like or Dislike: Thumb up 0 Thumb down 10
  • TheDean on Jul 17, 2018 at 6:53 am

    Many people are MISSING the point. The prices for cars may increase slightly (though easily adjusted by the proposed selling price), but most everyday needed items’ prices will go DOWN like foods, restaurants, sundry, hardware, furniture, etc. Many people don’t get it that when GST was implemented, MANY areas of an item from the time it is made, assembled, packaged, stored, delivered, shelved etc were charged 6% GST in EACH area, which by the time it reached consumers its price is already inflated steadily. Of course there was GST inputs and outputs but the majority of items were affected HEAVILY.

    Like or Dislike: Thumb up 50 Thumb down 26
    • lolol on Jul 17, 2018 at 7:48 am

      Let’s see what the service regime covers. There will be cases where prices may reflect 16% uplift instead of just 6%.

      Like or Dislike: Thumb up 21 Thumb down 4
      • TheDean on Jul 17, 2018 at 8:07 am

        I don’t think that’ll be the case. During GST, there was 6% plus ‘service fee’ that the restaurateurs were free to charge whatever percentage they wanted (just so happens the norm was 10%), which summed up to 16%. The new structure should impose a flat 6% for restaurants that offer waiting service.

        Like or Dislike: Thumb up 2 Thumb down 1
      • autodriver (Member) on Jul 17, 2018 at 8:55 am

        it is not “16%” uplift compare to GST 6%. The mechanism of SST and GST are different, GST is “rolling” basis but SST is only SINGLE stage.

        GST is multi-level chargable tax. Manufacturer 6% -> Distributor 6% -> Retailer 6% -> Consumer 6%. The 6% isn’t accumulate but the more level the more the GST charged and pass on to consumer.

        Among the layers there are mark up price for margin, this will goes inside GST which end up pass to end user. Whereby SST is only applied on manufacturer stage where they charge 10% and pass to distributor but no more SST tax from distributor > retailer > end user.

        Like or Dislike: Thumb up 14 Thumb down 15
        • ThAboIt on Jul 17, 2018 at 2:10 pm

          But most people don’t understand this. They only see one diagram and assume “we kena kencing oredy, look! GST is better!!”. Some of them even forgotten the time they bising2 when GST was introduced.

          Like or Dislike: Thumb up 3 Thumb down 2
      • Well well on Jul 17, 2018 at 9:15 pm

        True.. may not be the same quantum… but still am sure the calculation of SST+ Service Tax and GST will be higher for items which requires both products and services…. which means that it may be the same effect.. just collected differently.. so this can be GST rebooted…. sigh…

        Like or Dislike: Thumb up 0 Thumb down 0
    • Even with GST zero-rated already, prices for the majority of BASIC items are still on the rise. It doesn’t really help the poor at all, which suppose to be helped in the 1st place.

      Like or Dislike: Thumb up 20 Thumb down 1
    • Food prices nor groceries nor daily necessities never went down significantly, ada pun only 1-2%. Why ur Gov never see this? Now when 16% SST comes in, everyone will raise prices by 20% at least. This New MY only those with money can survive and only the rich prospers. New MY, theres no place for those less fortunate.

      Like or Dislike: Thumb up 14 Thumb down 4
    • Yes totally agree, Automobile price should remain as is now. All this Merchant try to up their price when actually not. Why prices are up those days like you said they are many area have been charged 6% when come to consumer. Imagine the goods past on from seller A to F.
      How many seller will charged 6%, starting from B to F. 6% x 5. You do the calculation!!

      Like or Dislike: Thumb up 3 Thumb down 2
    • The point is where is the promise to less the burden in cost of living? Abolish 6% by introducing 16% and price go down? Your wanna be the next Maslan ah?

      Like or Dislike: Thumb up 7 Thumb down 2
    • nurussalam aziz on Jul 17, 2018 at 10:42 am

      That’s true. GST, it will charge from A – Y (Z is consumer who bare all cost while A – Y can claim back the GST charge to government).

      SST for A only… 1 charge only. Not multiple tax like GST.

      Like or Dislike: Thumb up 7 Thumb down 13
      • English Teacher on Jul 17, 2018 at 12:33 pm

        Then you don’t understand how GST works even after so many years. Thick skull impossible to teach.

        Like or Dislike: Thumb up 13 Thumb down 4
      • what is gst on Jul 17, 2018 at 1:43 pm

        Oh My God, another one who dont understand what GST tax system is all about? So, if 5 layers of product chain, GST = 6% x 6% x 6% x 6% x 6%??? is it right ah????? Ha Ha ha….. OMG. No Wonder….. No Wonder………..

        Like or Dislike: Thumb up 10 Thumb down 1
    • Wan77 on Jul 17, 2018 at 11:20 am

      You can explain bla bla bla to make the new taxs are reasonable and practicable. But rakyat only want see the final result (goods price). Is it remain, down or going up! So, Najib is down nown, what about the cost of living surely can go down too?

      Like or Dislike: Thumb up 17 Thumb down 1
  • Sparcov on Jul 17, 2018 at 8:14 am

    don’t just look at the automotive prices.

    when GST introduced, a “teh tarik” that we drink also charged 6% GST.

    When something goes down, something will raise.

    Like or Dislike: Thumb up 4 Thumb down 1
  • MenteriPasola on Jul 17, 2018 at 8:22 am

    PT readers all dumb thinking 10% and 6% will effected all good and services

    U think SST is a blanket tax like GST??

    Like or Dislike: Thumb up 8 Thumb down 9
    • Graduan Bijak on Jul 17, 2018 at 12:58 pm

      Correct MP. Those readers can read the BM version of this artikel to understand more.

      Like or Dislike: Thumb up 4 Thumb down 3
    • There are some lagi dumb when they think GST taxation is compounded instead of rolling. Those who claims is compounded r only trying to justify their 6% extra profits, while fooling the rakyat.

      Like or Dislike: Thumb up 6 Thumb down 1
  • rightwinger on Jul 17, 2018 at 8:36 am

    dey, GST 0 rated also no price change, now slap 10 + 6 % tax you expect price go down???

    face it, the ones complaining about GST are the one who dont want to pay tax but cannot avoid it, and the ones who consume the most because GST or VAT is consumption tax = the more you spend, the more youre taxed. and the malays dont earn much to splurge on the latest must haves…

    Like or Dislike: Thumb up 11 Thumb down 3
    • Yang mahal on Jul 17, 2018 at 2:40 pm

      GST set to zero %, belum dihapuskan
      When our lovely PM want it go up, it will return

      Like or Dislike: Thumb up 1 Thumb down 0
  • Mahmood Razak on Jul 17, 2018 at 9:54 am

    Good graphics, PT. Clearly shows the elements to the sum.

    Price in reality should decrease as the GST tax points are removed. But the point to be seen is will it decrease?

    Like or Dislike: Thumb up 6 Thumb down 1
  • ss427 on Jul 17, 2018 at 10:32 am

    Come I clap for you my bolehland friends. So this is what you guys voted for right? Ended up paying 16% tax hahaha…

    Those who laughed at sg citizens that we are going to pay 9% GST in 2020 and we dare not to make any noise about it…well… looks who is talking now…LOL

    Like or Dislike: Thumb up 11 Thumb down 5
    • Rakyat Malaysia on Jul 17, 2018 at 4:02 pm

      Huhuhu Rakyat Malaysia ditindas oleh Kerajaan Baharu and rakyat luar now laughing at us. Kesian Rakyat Malaysia.

      Like or Dislike: Thumb up 1 Thumb down 0
  • Yang mahal on Jul 17, 2018 at 10:50 am

    Don’t missing the word “GST 0%”

    I’ll be back!

    Like or Dislike: Thumb up 3 Thumb down 0
  • whatever the system, price never go down laa.

    Like or Dislike: Thumb up 12 Thumb down 0
  • ahboi on Jul 17, 2018 at 11:52 am

    Sales tax… cukai jualan. So anything that related to buying and selling for sure kena 10% tax. So 6% is so high. And 10% ermmmm so damn ok la, sbb nk build new Malaysia. hahahah

    Like or Dislike: Thumb up 5 Thumb down 1
    • MenteriPasola on Jul 17, 2018 at 1:51 pm

      GST = blanket tax
      SST = blanket tax too?

      Like or Dislike: Thumb up 1 Thumb down 6
      • Blanket tax at source. With least with GST, consumer know how much tax u end up paying, but with SST, u know none at all. Plus, with SST, traders and middle men can easily cheat by hide their actual earnings and declare lower income. That why these people don’t like GST at all.

        Like or Dislike: Thumb up 4 Thumb down 1
      • SST = black hole tax. Nobody knows how it’s charged.

        Like or Dislike: Thumb up 4 Thumb down 1
  • Dong Gor on Jul 17, 2018 at 1:57 pm

    Keep cursing here won’t make u richer. Spend the time to think how to make more money and you won’t mind the tax any more. Don’t just be a bunch of losers

    Like or Dislike: Thumb up 1 Thumb down 6
  • JW Wong on Jul 17, 2018 at 3:14 pm

    So in the end nothing has changed and it can only gone worse.

    Like or Dislike: Thumb up 1 Thumb down 0
  • sabahan on Jul 17, 2018 at 3:40 pm

    all accessories no need sales tax?

    Like or Dislike: Thumb up 1 Thumb down 0
  • Tun F on Jul 17, 2018 at 9:38 pm

    Tahniah Rakyat Malaysia… Tahniah Malaysia Baru!!!!!

    Like or Dislike: Thumb up 1 Thumb down 0
 

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