Perodua has announced that the prices for selected models are down between 1-3% with the reintroduction of the sales and services tax (SST) against prices inclusive of the 6% goods and services tax (GST). The SST replaces the previous GST, which was zero-rated from June 1.

“Based on the new tax structure, almost all Perodua models see price reductions compared to the GST price structure. We wish to thank all Malaysians, especially our 3.3 million valued customers who have chosen Perodua as their brand of choice. We will continue to offer the best value in the Malaysian market with our new prices,” said Perodua Sales managing director Datuk Zahari Husin.

“On Perodua’s service and parts, we will continue to give competitive pricing to our customers. We truly appreciate the unwavering support the people have shown for our products and services, and will continue to improve ourselves for our customers,” added Zahari.

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As a recap, the Royal Malaysian Customs Department had previously issued a statement clarifying reports on cars being exempt from sales tax (SST). The goods that are exempt from SST are components for CKD assembly, and not the CKD cars themselves. The finished product, which is the car, is still liable for SST.

Prior to the return of the SST, the Malaysian Automotive Association (MAA) stated that car prices are likely to go up with SST. Its president Datuk Aishah Ahmad had previously said, “when GST was introduced, prices went down for most car models, so from GST to SST you know for sure that there will be a price increase.” Clearly this isn’t the case for Perodua, but we’ll have to wait for other car companies to release their new price lists to see what’s what.