SST will return in two to three months’ time – Tun Daim
As previously reported, the new government has announced the current goods and services tax (GST) will be revised from 6% to 0% on June 1. This will be followed by the reintroduction of the sales and service tax (SST), and it has now been revealed that such a move will take place within two to three months.
This is according to Tun Daim Zainuddin, head of the government’s Council of Eminent Persons during a recent press conference. “SST can be established in two, three months,” he said, according to a report from The Edge. Daim didn’t explicitly state from when the timeframe will begin, but it is likely an ongoing process – GST zero-rated will apply till then.
He added that the return of the SST is estimated to raise approximately RM30 billion and will mitigate the loss from GST collection. However, he did not disclose what the SST rate will be, which was previously set at 10%.
With this revelation, consumers will enjoy a relatively lengthy “tax-free window” after June 1 until the SST comes into effect, with many car companies already releasing updated price lists sans GST. This includes UMW Toyota, Volkswagen Passenger Cars Malaysia (VPCM), TC Subaru and BMW Group Malaysia, where price reductions on all models are realised, although not all at precisely 6%.
Keep in mind that there is a likelihood that the implementation of the SST might result in car prices going above the GST zero-rated prices being offered from June 1, but we’ll have to wait for the exact SST rate to deduce anything further. For now, will you be looking to take advantage of the GST-free pricing?
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May 18, 2018 at 03:47PM