The government has announced that the sales and service tax (SST) rate for pneumatic tyres and electric motorcycles has been reduced to 5% from the 10% that was previously set for both categories, Bernama reports.
According to finance minister Lim Guan Eng, the decision to reduce the SST rate for the two categories was made by the finance ministry together with the customs department following feedback gained through 18 briefing and Q&A sessions held nationwide, involving over 15,000 participants.
Previous news reports from last month indicated that a price hike for motor vehicle tyres (passenger car, light trucks, vans etc) was on the cards following the reintroduction of SST, with a number of tyre companies – including Michelin, Bridgestone, Goodyear, Continental and Hankook – announcing that there would be an expected increase as of September 1 when SST kicked in.
The move to reduce the SST rate to 5% should translate to another repricing exercise by tyre companies as well as those involved in the sale and distribution of electric motorbikes in the country, and in the case of tyres there should now be no noticeable increase in product pricing as a result of the rate revision.
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Why still having 5% SST? Isn’t their promise to commit to support local industries like rubber tyres? So why not exempt SST for local products like tyres as well?
Fully agree. Not juz 5%, their promise car prices 30% down oso.
Bro, where got janji PH to reduce down car price to 30% ? U mabuk ketum is it?
Their 30% promise from 2013 yo.
somehow no longer relevant since in power….
He can now go to be best pals with Rocketman JongUn. SpaceX can help their peaceful space program and reusable rockets can assure Trump its not a one way trip to USA.
SST has nothing to do with supporting local products. Tariffs is what is used to support local products. 5% is a fair amount.
Syabas menteri yb Lim. TQ kerajaan prihatin.
Tak payah amik tayar celup, tayar seken lagi…. X selamat. Dh jimat skrg, blh amik tayar baru ye
Bukannya 5 persen lagi murah tapi tax 5 persen. Mahai gile! Ini semua salah kjaan!
Very mafan
Some 10%, some 6%, 5% and 0%
Sometime U-turn
Become like India GST. Many many ratings until whole nation pusing kepla.
Ya..the whole nation kena pusing kepala
So SST did increase the price, and they indirectly acknowledged it. well, at least they fixed it by reducing to 5%. Wait, workshop will total up and add 10% service tax.