![\"AISHAH_c776615_13722_610\"](\"https:\/\/buletinonline.net\/v7\/wp-content\/uploads\/2015\/02\/AISHAH_c776615_13722_610-210x300.jpg\")
<\/a>This is because car companies had already paid 10% in SST for cars they bought before April, and those that bought the cars from a distributor or a non-licensed manufacturer can only claim back 20% of the sales tax they paid, which translates to 2% of the 10%.<\/p>\n\u201cOn April 1, customers will have to pay the 6% GST. So in total, the tax would be 8% (from the non-refundable SST part) plus the 6% GST. This means that in actual fact, car prices will increase (during the interim period) because you have to pay tax twice,\u201d said Aishah.<\/p>\n
But she also said the GST was a very small element in the pricing of the cars as the major element affecting the pricing was the excise duties the companies had to pay to the Customs Department, which range from 65% to 105% depending on the engine capacity of the vehicle.<\/p>\n
This, she said, is one of the main reasons car prices in Malaysia are among the highest in the world.<\/p>\n
\u201cWe have been asking for a reduction of the excise duty but we still get the same answer: \u2018No\u2019.<\/p>\n
\u201cThe revenue the Government gets from duties (excise duty, SST, import tax) from the Malaysian automotive industry comes up to RM7bil per annum. It is too huge an amount for it to lose.\u201d<\/p>\n
She added that the appreciation of the US dollar against the ringgit would also affect the price of cars.<\/p>\n
Compared to January last year, the US dollar has appreciated against the ringgit by a significant 28% to 32%. Many car distributors even use US dollars to pay for their Complete Knock Down packs, including those from Japan and South Korea, Aishah said, adding that most imported vehicle components and spare parts were also priced in US dollars.<\/p>\n
\u201cWith the exchange rate this high, members are trying to mitigate the problem and do what they can to hold on to current prices.<\/p>\n
\u201cBut how long can they withstand and absorb this? If they do lose money, then they will have to increase prices,\u201d she said.<\/p>\n","protected":false},"excerpt":{"rendered":"
There has been a buzz that car prices will come down with the introduction of the Goods and Services Tax (GST) as the rate is lower than the current Sales and Services Tax (SST). Customs Department director of GST Datuk Subromaniam Tholasy said based on computation after taking into account the distribution margin, the price […]<\/p>\n","protected":false},"author":1,"featured_media":30340,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"better_featured_image":{"id":30340,"alt_text":"","caption":"","description":"","media_type":"image","media_details":{"width":640,"height":352,"file":"2015\/02\/DSC_0954.jpg","filesize":138111,"sizes":{},"image_meta":{"aperture":"5.6","credit":"","camera":"NIKON D40","caption":"????????????????????????????????????","created_timestamp":"1205172429","copyright":"","focal_length":"190","iso":"200","shutter_speed":"0.01","title":"","orientation":"1","keywords":[]}},"post":30331,"source_url":"https:\/\/buletinonlines.net\/v7\/wp-content\/uploads\/2015\/02\/DSC_0954.jpg"},"_links":{"self":[{"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/posts\/30331"}],"collection":[{"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/comments?post=30331"}],"version-history":[{"count":0,"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/posts\/30331\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/media\/30340"}],"wp:attachment":[{"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/media?parent=30331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/categories?post=30331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/tags?post=30331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"main_alc_0802_dutiesPDF\"](\"http:\/\/buletinonline.net\/v7\/wp-content\/uploads\/2015\/02\/main_alc_0802_dutiesPDF.jpg\")
<\/a>Customs Department director of GST Datuk Subromaniam Tholasy said based on computation after taking into account the distribution margin, the price of cars is still expected to be \u201cslightly lower\u201d under the GST, although the difference between the GST and SST is \u201cnot a full 4% and is much less\u201d.<\/p>\n