Lower car prices when GST kicks in, say Customs
– Bernama
Vehicle prices will generally be lower from April 1 with
the implementation of the goods and services tax (GST),
said director-general of Customs Datuk Seri Khazali
Ahmad.
He said the GST was 6% while the current
vehicle sales tax was 10%. The vehicle sales tax will be
abolished on April 1.
Khazali told Bernama the
doubt over whether the prices would rise or drop came
from the confusion among car dealers as to how they were
going to dispose of the vehicles for which they had
already paid the 10% vehicle sales tax.
Kuala Lumpur and Selangor Car Dealers and Credit
Companies Association president Khoo Kah Jin said he did
not expect a significant drop in vehicle prices as the
difference was likely to be offset by the prices of
imported vehicle components due to the higher exchange
rate. |
|
"The vehicle prices will go down by between 2% and 3%
with the GST," he said. "However, the prices may
increase slightly depending on the foreign exchange rate
because most vehicle components are imported, for
example from the United States, Europe and Japan," he
said.
Khoo said used car prices would also be
subject to GST but these prices would be placed under
the margin scheme to avoid double taxation.
"Buyers (of used cars) will not be affected by the
prices as the GST will be imposed only on the dealers
based on the profit from a sale.
"For example,
if a used car dealer buys a car from a individual for
RM30,000 and sells it to another for RM60,000, the GST
will be imposed on the RM30,000 profit," he added. –
Bernama, March 22, 2015.
Source:
The Malaysian Insider
, dated
22/03/2015 |