In Budget 2024, the Madani government announced a 2% service tax increase from 6% to 8%, and it will start on March 1. Exemptions include services for food and beverage, telecommunications, vehicle parking and logistics; but expect to see the tax hike in areas such as vehicle servicing, which has labour charges.
It may be just a service tax increase and not an overall sales and service tax (SST) hike, but car prices might go up as well, in tandem with the overall cost of doing business. At least that’s the case for the Sime Darby Group, reported by The Edge.
According to group CEO Datuk Jeffri Salim Davidson, Sime Darby – which motors division is a distributor and/or dealer of brands such as BMW, BYD, Ford, Hyundai, Jaguar, Land Rover, MINI, Volvo and Porsche – is expected to increase car prices in Malaysia. Sime Darby also recently became the majority shareholder of UMW Toyota Motor (Toyota and Lexus) and Perodua via a takeover of UMW.
According to the report, Jeffri said Sime Darby will treat the tax rate increase, which will be applicable to all other automotive players as well, as part of its cost of doing business. However, the increase won’t be a flat 2% as there are many factors involved.
“In theory, yes [car prices will increase]. But the car price is set depending on competition, so it won’t exactly be 2%. And then we have other factors that come into play. So, it’s difficult to say exactly that car prices will go up by 2%,” he told the media on Wednesday.
This is an example of prices indirectly affected by a seemingly unrelated tax, as the overall cost of doing business increases and companies seek to maintain their margins. Speaking of higher prices, there’s also the high value goods tax (HVGT) and fuel subsidy rationalisation to ‘look forward to’ this year.
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Anwar menang, rakyat senang
This is just the start. Habeslah Madani Madanon!
Bigger power Comes bigger responsibility
Can afford pay a bit more to enjoy lo
stoopid logic
Our country taxation rely heavily on B40 and M40 while T20 will have they ways to get away in their businesses
What weed are you smoking? B40 don’t pay taxes. The country is funded by M40 and T20.
What weed are you smoking to think the T20 are paying their taxes?
Have you forgotten najis, his daughter did not pay taxes??
God alone knows how other politicians, royalty, millionaires, billionaires, cronies and “*a.s.s.l/i.c(k)”e:r::s dont pay taxes!!
When you take on the responsibility to work hard, great power will come
This is the only country that promotes the culture to continue to stay poor so you can enjoy the benefits of handouts on the expense of those who pay taxes and hardworking!!! That is why our country is continuously regressing. This govt is even worse and increases the taxes while our forex keeps on depreciating.
Sime Motors are cheeky. They increased the price early this year, knowing that they will have to increase the price later when the SST comes in. the first increase was strategically position just before the CNY. After that an auto fest in Bukit Jalil, a discounted auto fare. to maximise the succus of the auto fest, the SD Dir makes a mild statement indicating the price increase that may happen due to the effect of SST. With all this price hike the “value” of the car remains remains the same as before. Even worse is the optional “extended” service package. Brilliant marketing move by Sime Darby Motors making the consumers foolish!!
Doesnt change the fact of a tax hike. Will still apply across in the market. Recall when they were opposition, GST was blamed for higher car prices. Now we have a depreciating ringgit + tax hikes. Well done…..
Great because Malaysian can’t wait to buy the Hyundai Creta Made in Indonesia with specs 1.5 NA with CVT for initial price of RM149,888 to become RM152,885….
How come Madani government supporters seems just ignore about these AP holder issues? Those woke dumbasses all bark but no go
Actually the big AP Protector brother comes from our investment guy who stated that if AP is abolished then all of a sudden EV cars will not be safe in Malaysia. He is trying hard to justify to save our crony business just as so many of them again and again.
ok… can afford to buy expensive cars should be able to afford higher tax..
Still got Perodua kereta rahmah for the masses..
boikot, don’t buy from greedy basterds
So byd seal will increase price after this?