"The directive has been issued so that we ( the government) do not to collect anymore GST".
The Goods and Services Tax (GST) will be zero-rated for all items and services in Malaysia from June 1, the Finance Ministry announced today. This excludes goods and services that are now GST exempted.
Therefore, the ministry said all registered traders must comply with this imposition of zero rate.More news: Villanova, Michigan to meet in November in national championship rematch
The ministry advised those affected to contact the Royal Malaysian Customs Department at 1 300 88 8500 or 03-7806 7200 (Custom Call Center) for further clarification.
So what does this mean to the rest of us?
In general, the move was made possible due to the major victory that Pakatan Harapan has achieved in the recent General Election. An industry source told us that buyers can not expect to simply remove six percent from current selling prices, as carmakers have paid GST all along the production and distribution process, and the tax isn't just charged to the customer in one lump sum.More news: Grayling announcement on East Coast franchise expected
Mahathir plans to reintroduce the sales and services tax (SST), which is imposed on companies, as opposed to GST, which is a tax on consumption.
Assuming that the old Sales and Service Tax (SST) is not reintroduced, could this also translate to lower auto prices in the short term, as the prices will be significantly lower with GST being zero-rated?
As recently as Monday, Edaran Tan Chong Motor's sales and marketing director Christopher Tan said that auto prices might actually go up slightly if the previous 10% sales tax (which was superseded by GST) is reinstated without changes.More news: IEA warns global oil demand may suffer as crude nears $80
Will this affect your current purchase decision?