Proton expects up to RM3,000 price increase with SST

Proton expects the prices of its cars to increase by between RM1,500 to RM3,000 when the sales and services tax (SST) makes its return in September. Currently, consumers are enjoying a “tax holiday” with the goods and services tax (GST) being set at 0% until the end of August.

“We expect the price of Proton vehicles to go up after the implementation of the SST even though we have yet to ascertain the accurate figures as the government has yet to announce the tax mechanism,” said Proton Edar CEO, Abdul Rashid Musa, in a report by Bernama.

“The calculation of the price increase was made based on the GST introduced by previous government to replace the SST where the prices of Proton cars then were reduced by between RM1,500 and RM3,000. As such, when the SST is re-introduced, we expect there will be a similar increase in the quantum price,” he explained.

Rashid also added that those who are planning to buy a Proton should do so while they can still enjoy the zero-rated GST savings. For now, stocks are still sufficient to meet demand, but he hoped that customers would not be too choosy with the variants and colours if they want to buy them immediately.

Other car companies have revealed that they would absorb the SST for vehicles booked before, but delivered after September 1, including Mazda and Hyundai.

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