In line with the implementation of the sales and services tax (SST) on September 1, Volvo Car Malaysia has released an updated price list for its models currently on sale, all being locally assembled (CKD). The new prices are inclusive of the 10% sales tax imposed on motor vehicles.

As you can see, there is no difference between GST-inclusive and SST-inclusive pricing for all models. The most affordable Volvo model, the V40 T5, retails at RM180,888 OTR without insurance, while the XC90 T8 Twin Engine Inscription Plus goes for RM413,888.

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Based on price lists provided by car companies, the adoption of the SST has affected the pricing of models differently, with some going upwards, downwards, or in the case of Volvo, unchanged from GST-inclusive prices in the past. The Malaysian Automotive Association (MAA) had earlier suggested that car prices will increase with SST.

It has been announced previously that SST will be set at 10%, the same as when it was replaced by the goods and services tax (GST) in April 2015. Car buyers enjoyed a “tax holiday” that lasted three months when the GST was zero-rated from June 1 earlier this year.

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