UPDATE: Story has been revised from the initial source report, which contained errors, to denote that SST exemption will only be for locally-assembled CKD vehicles packs, an exemption that has always been in place even with the old system.
Earlier today, Malaysiakini reported that car prices were set to remain, based on a list released by customs department director-general Datuk Seri Subromaniam Tholasy, which revealed that passenger motor vehicles are among the items that will be exempted from the sales and services tax (SST).
We have since learnt that the the proposed exemption list released today does not mean that there will be no SST being imposed on cars at point of sale. The exemption with regards to motor vehicles only applies to CKD packs – for sedans, four-wheel drives, station wagons and racing cars – and not the final assembled vehicles, so SST will still be factored into pricing when the time comes.
This being the case, car prices – which were revised as of June 1 following the zero-rating of the goods and services tax (GST) – are now expected to increase as of September 1 when SST makes its official return.
Finance minister Lim Guan Eng has said that there will be two different rates of 5% and 10% for sales tax, which is applicable to selected manufactured and imported products. Details will be announced when the new SST Bill is tabled in parliament next month.
The customs department has issued a statement to clarify the whole matter.
Looking to sell your car? Sell it with Carro.
Only CKD vehicle exempted from SST. CBU still need to pay SST as written on the proposal by MOF.
Tuuu diaaa… Gomen bijak, rakyat sejahtera!
Where is john, he said after Pakatan took over, all cars will go up 300%
Where is john? Can john come here and clear this. All his postings said this.
john never said that. please don’t be like the gov, simply talk but no prove. then later when they find out they were wrong, they do some u-turn pulak…
OMG OMG OMG. What great news. This dispels all the fake news that New Malaysia going to see car prices shoot up
Wow, so much good news. No GST. Broadband 10X speed upgrade…..
What a great Government!!!!!!!
haha…. u for real or troll jer.. haha
what a great Gov that is~~~!!
Kitorang dapat CKD ford Mustang murah weii.
We waited for 5 years for the previous Government to give us 30% reduction in car prices. They promised in GE13. Promised so much. Nothing happned. We kena tipu
Now Pakatan, within 90 days, already reduced car prices.
I can clearly see who is a more honourable Government
Such great news from the Government cause 90% of all cars are CKD anyway.
Malaysians now save a lot. Even when I go 99 Speedmart, I see prices are so much cheaper than 4 months ago.
We Malaysians now save so much of money.
As I always said, once you clean up corruption, the Government will have so much of money to give back to the rakyat
Actually the exemption should be on the importation of CKD pack components. After assembling the CKD components at factory, the assembled vehicle will be imposed with Sales Tax. Same practice as before GST.
Let’s buy in December then
I cannot stop laughing at all the fake news passed the past few months.
Another fake news is the RM1.50 petrol manifesto. No such thing. PH Government never made such promise in their manifesto
Aiseh….so much of fake news from sour grapes.
Ohh sharks! RV of my Accord dropped ano 6%.
Once we clean up corruption and all the dedak takers as well as all the overpaid GLC directors, Malaysia will have so much of money to give back to the rakyat.
Now, all this money can go to better our schools and hospitals
30 million people are now happy they chose an honest and clean Government
How about motorcycles?
CKD motorcycles below 250cc exempted from SST.
Another discrinimation of big cc motorcycles.
Anthony, please verify the fact before post this kind of news. Malaysiakini made the mistake and then followed by Paultan….and many more others to come
wow!!
So, if no additional SST being applied, meaning PH government managed to reduce car prices by 6% across the board.
Well done. That’s certainly good news.
This is not true, please verify the facts before releasing such information to public
But OTR will increase due to insurance being charged 6% right?
Bro, 6% for insurance on RM50k is how much while 6% on RM50k is how much ?! Know the difference la otherwise my Uncle john may bash U for no reason.
I don’t think so as I don’t remember paying 6% for insurance during the old SST period
There’s a FAQ in the customs website that says Insurance is a taxable service.
Good news!! So now where is roti John??
i told him before don’t jump into conclusion before things confirm by authority
https://paultan.org/2018/07/19/only-components-for-ckd-cars-are-sst-exempt-finished-product-to-have-sales-tax-customs/
Yes, dun jump to conclusions. Hahahahaha!
This gov is well known to Uturn. Lets wait and see whats the final turn. Hahaha!
P.S Seems Dark Knight above caught something hanky panky with that announcement. Epic lolz!
Nope. This is fake news again. No such u turn before. If you are jeles, pls keep quiet john.
Learn to be happy that we have a clean Government now
Nobody does u-turn better than Proton. Before this they see themselves as Conti cars competitor and look down on Japanese and what’s more the Chinese.
Now they praise the Chinese and want to compete with the Japanese.
Jepunis products nowadays no quality lor
Yea.. no 10% SST. No rush for tax holiday. yay ~
yahooo!!! now I can buy a lambo :D
Lambo is CBU, so u kena sst..if u want CKD then it will be lembu
This made me spill my drink. Well done.
You are shortsighted. I am thinking Tun M going to acquire lembu and kuda and declare it as new national car and will start to do CKD here.
Ini macam 2020 vision with visionary mind.
Good move
This is People hope for long time.Great job PH.
For those with 30 years old car above is time to stop running on the road.
Celaka now only tell us. Could have waited for Honda to replenish their stock ended up went with Nissan.
Buy a car that you like, not because it’s cheap. Seancorr so cheapo lor, if I were you just keep quiet d. keke
what car did you buy? Serena?
cheapskate. u changed yr decision because of a 10% saving?
eh why nissan?
TAKE NOTE that NISSAN have HUGE PROBLEMS. There are many REASONS of why Nissan have HUGE PROBLEMS. Firstly, Nissan carmakers have CHEATED EMISSION REGULATORS with DEFEAT DEVICES for ALL NISSAN MODELS. Secondly, There are also having MAJOR PROBLEMS for Nissan in which Nissan as a carmaker DIDN’T MEASURE PROPERLY for FUEL EFFICIENCY RATING (FUEL ECONOMY) for ALL NISSAN MODELS which IS MOST LIKELY to AFFECT to the ENVIROMENT. Now, Nissan as a carmaker is becoming NISSAN SCANDAL
Ohhh snap!
i told him before don’t jump into conclusion before things confirm by authority
https://paultan.org/2018/07/19/only-components-for-ckd-cars-are-sst-exempt-finished-product-to-have-sales-tax-customs/
Only CKD cars, not CBU. CBU still implies SST
Please check the Proposed Goods Exempted from Sales Tax released by Customs. They are referring to passenger cars CKD packages (loose components) for local assembly activity, NOT CBU after assembled or fully imported.
So…this means all cars still subject to SST
A car is sold as a CKD. It doesn’t become CBU after assembly, it’s still CKD. This means a CKD car does not have to pay SST. Where does it say just for assembly?
“Motor cars and other motor vehicles principally designed
for the transport of persons (other than those of heading
87.02), including station wagons and racing cars.
Other vehicles, with only spark-ignition internal combustion
reciprocating piston engine:
8703.21 – – Of a cylinder capacity not exceeding 1,000 cc:
– – – Completely Knocked Down:
8703.21.15 00 – – – – Sedan
– – – – Other motor cars (including station wagons and
sports cars, but not including vans):
8703.21.21 00 – – – – – Of four-wheel drive
8703.21.29 00 – – – – – Other
“
Don’t you love it when a news portal quotes another news portal?
Lol. Those who bought cars during this so called “tax holiday” will no longer feel special
Still hv. Those ppl tht buy CBU cars get a tonne of savings. Insurance alone save alot already for luxury cars
How about recon car ? SST’ed or not ?
luckily I already bought my aston martin, Bentley, mclaren, jaguar, range rover and rolls royce.
Toys car also got tax holiday?
A car is sold as a CKD. It doesn’t become CBU after assembly, it’s still CKD. This means a CKD car does not have to pay SST. Where does it say just for assembly?
Answer to Is that what it means:
It’s CKD model not CKD car. CKD packages was declared CKD tariff code at port for clearance (no sales tax) but later when roll out from assembly plant, it must declare as CBU tariff code to Customs because it has been completely build up into a car (have to pay sales tax).
Please check previous Sales Tax (Exemption) Order 2013, CKD tariff code also listed there, it is a same concept now ….Do you pay sales tax for CKD model before implementation of GST?
Your brain masuk water ???
Meaning there will be sales tax exemption to bring in CKD kits, but will there be same sales tax exemption when selling the car? Does the ministry clarifies this?
Nicely spotted, Dark Knight. This is the tricky intricacies of SST when compared to GST.
It is the time now for MITI to urge all CKD car manufacturers to revise their Nett Selling Price before excise duty and sales tax so the final OTR price without insurance can be reduced.
CKD motorcycles below 250cc exempted from SST.
If true that it applies to CKD models only, it kills two birds for me meaning Jobs and Prices. I am for it because CKD cars in Malaysia is not new hence ‘quality’ next incentive hopefully should be specifically for Public Transports.
So only CBU cars will become expensive then?
This is stupid. Do you see any ckd 4×4 or pickups?
Some of us must drive pickup to make a living
They should also only include sst on certain cbu cars
Hilux and D-MAX are CKD pick-ups.
https://www.carbase.my/search?on_sale=1&assembly=ckd&body_type=pickup
Just an advice Bossman, but ur team shud hold of posting articles b4 getting the full info. Otherwise they wun have to issue another article to correct it. It just makes PT like a tabloid newsite. Cheers.
All CKD? including all the luxury model like merc and bmw that are CKD here? Doesn’t make sense, should cap the sst free for ckd cars lower than RM100k.
sorry, stupid question. May i know the new HRV facelift is CKD or CBU? because i just booked and would like to find out whether i have to pay extra 10% SST
All ckd except Odyssey & CBR
probably ckd. they stop ckd production of the previous model to make way for the facelift
if i book CBU car and pay booking fee now, but delivery only on Sep18, still got 10% SST?
Also will the dealer allow to lock-in the price without SST after booking fee paid , or only after loan approved even though car not delivered yet before Sep’18?
So the price will change right? I’m not being political, I’m asking if the prices will change come September because I know idiots will then point to this article saying price unchanged when the OTR is increased by RM300 and start making stupid comments.
You better get better clarification.. CKD assembled car or only CKD car parts?
Assembled cars
Sorry, stupid question. May I know the new HRV facelift is CBU or CKD? because I just booked one and would like to find out whether I have to pay the extra 10% SST. Thanks!
CKD bro.. if CBU cannot be so cheap like thailand price. u see C-HR CBU from thailand, so the price higher than thailand. same like Civic, price same like thailand only. So don start the cb say malaysia goverment protection policy. our price already same as thailand for CKD and EEV car, don live 20years ago. Don be a sohai
The S450 CKD is priced at RM 695,000. The government is willing to forgo RM69,500 in SST. Great.
those recon cars all sure kena kao kao
I’m thinking of getting the new subaru xv crosstrek. Is it advisable to get one now or wait until September 1st?
Hope someone can help explain.
I’m thinking of getting the new 2018 subaru xv crosstrek. Is it advisable to get one now or wait until September 1st?
Hope someone can help explain.
I lol’ed when reading the comments before the correction. You really think that the gov will forgo the tax of high value item?
Bro Matchy. Its just the basher PH troll trying crow at his masters “gud news” but it turns out to be fake news. I belip those who have a gud laff had punished that fools comment in the retraction article. Just laff at his comments and move on.