As currently new cars are subjected to 10% sales and service tax, but after implementation of GST, this will be replaced with GST which is 6%. So new car prices are expected to be cheaper about 4% after the implementation of GST according to Malaysia Automotive Institute (MAI).
CEO BERNAMA Madani Sahari predicted that the price of new cars will be reduced at average 1% to 3% after the implementation of GST. This includes most models including imported cars. This will indirectly set to encourage demands for vehicles.
Bad Effect On Used Cars
The same situation cannot be compared with used cars. GST will have a bad effect on used car industry in Malaysia. As currently used cars are not subjected to Sales and Service Tax (SST). But after implementation of GST, used car will be subjected to an extra 6% after the implementation of GS.
No comments
Post a Comment