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 GST Abolishment, Car Buying Decision

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TSLord Suave
post May 11 2018, 04:54 PM, updated 6y ago

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Tun M was asked about reduction of GST and he said, no reduction, but abolishment instead and the reporter continued asking would there be a tax to replace. Tun M indicated that Malaysia will go back to Sales and Service Tax (SST).

That being said, is there an expert or person with knowledge could advise if it is better to buy the car now with GST of 6% or would it be better to wait when the SST is reintroduced? I tried finding online and the taxation rate is not very clear. I am looking at buying a brand new car.
HonMun
post May 11 2018, 04:56 PM

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Just wait......time will tell soon
SUS2feidei
post May 11 2018, 05:01 PM

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As unofficial indicator, u try to dig back the price of car you want to buy just before GST implemented, and the price immediately after it implemented.


razgriz_0087
post May 11 2018, 05:04 PM

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Previously mine cheaper when in GsT. Not sure new SST rate as previous SST rate was 10%
Zot
post May 11 2018, 05:14 PM

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I think it is the same depending on how much the rate. The difference between SST and GST is that the SST is charged only once like during importation but with GST the tax is applied on every transaction between seller and buyers.

Therefore, for the SST the tax is included in the price from very beginning and each time the transaction between seller and buyer, the price hike is on profit making. For the GST, the price hike also take place during each transaction due to profit taking but the GST is also gaining and accumulate in amount along the way. If the GST percent is lower, then probably end up the same like SST but probably previous govt is taking advantage on this. smile.gif

The good thing about GST is that if there is any cheating, like paying less tax or avoiding tax totally, there is still chance tax will be collected during transaction along the way. For SST, once tax escapes during importation, then govt get nothing. This is what I think happened.

Correct me if I'm wrong biggrin.gif
ymgoh99
post May 11 2018, 05:15 PM

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would like to know too.
iamshf
post May 11 2018, 05:54 PM

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Just Googled, the old GST related post from Paultan

The car price was reduced a little after GST
cheaper by between RM500 and RM2,500 for Honda cars.



john123x
post May 11 2018, 05:56 PM

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i prefer abolishment of AP.

foreign cars shouldnt be too expensive.

19 Degree South
post May 11 2018, 09:07 PM

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QUOTE(john123x @ May 11 2018, 05:56 PM)
i prefer abolishment of AP.

foreign cars shouldnt be too expensive.
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Later a smart Alec will cum hantam you on talking about AP ! Lol!
6UE5T
post May 12 2018, 12:37 AM

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QUOTE(john123x @ May 11 2018, 05:56 PM)
i prefer abolishment of AP.

foreign cars shouldnt be too expensive.
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Probably would not happen because AP was devised during TunM's era and Proton was his baby to be protected all the time from foreign cars competition. Since now he's back in power, so probably expect still the same in this respect.
Killmeplsok
post May 12 2018, 08:42 AM

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QUOTE(Zot @ May 11 2018, 05:14 PM)
I think it is the same depending on how much the rate. The difference between SST and GST is that the SST is charged only once like during importation but with GST the tax is applied on every transaction between seller and buyers.

Therefore, for the SST the tax is included in the price from very beginning and each time the transaction between seller and buyer, the price hike is on profit making. For the GST, the price hike also take place during each transaction due to profit taking but the GST is also gaining and accumulate in amount along the way. If the GST percent is lower, then probably end up the same like SST but probably previous govt is taking advantage on this.  smile.gif

The good thing about GST is that if there is any cheating, like paying less tax or avoiding tax totally, there is still chance tax will be collected during transaction along the way. For SST, once tax escapes during importation, then govt get nothing. This is what I think happened.

Correct me if I'm wrong  biggrin.gif
*
You're correct. except one thing, for any transactions between businesses not involving end user GST could be claim back from the government, so essentially there's only one party who is actually collecting GST.

Lets say an items go through a chain like this:

Raw material supplier > Raw material processor > product manufacturers > wholesale supplier > shops > end user

Each of the business in the chain will collect GST, but GST registered company would be able to claim those GST paid back from the government so essentially only the end user is paying it.
john123x
post May 12 2018, 10:02 AM

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QUOTE(19 Degree South @ May 11 2018, 09:07 PM)
Later a smart Alec will cum hantam you on talking about AP ! Lol!
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abolish gst, foreign car only cheaper few %, but abolish AP, its possible cheaper 50%!!!!

QUOTE(6UE5T @ May 12 2018, 12:37 AM)
Probably would not happen because AP was devised during TunM's era and Proton was his baby to be protected all the time from foreign cars competition. Since now he's back in power, so probably expect  still the same in this respect.
*
M said he will fixed up his mistakes. i hope he fixed up his AP mistakes too
19 Degree South
post May 12 2018, 10:33 AM

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QUOTE(Ginny88 @ May 11 2018, 07:32 PM)
There are huge institutions to clean up starting with the Judiciary, MACC, Police, A-G, SPR, RoS, Press freedom, sedition laws, etc and you are concerned with APs. All you are concerned with is driving a better car. You should be ashamed of yourself.
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QUOTE(john123x @ May 12 2018, 10:02 AM)
abolish gst, foreign car only cheaper few %, but abolish AP, its possible cheaper 50%!!!!
M said he will fixed up his mistakes. i hope he fixed up his AP mistakes too
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Lol......the smart Alec Ginny88 said you shd be ashamed of yourself ! laugh.gif
Zot
post May 12 2018, 01:36 PM

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QUOTE(Killmeplsok @ May 12 2018, 08:42 AM)
You're correct. except one thing, for any transactions between businesses not involving end user GST could be claim back from the government, so essentially there's only one party who is actually collecting GST.

Lets say an items go through a chain like this:

Raw material supplier > Raw material processor > product manufacturers > wholesale supplier > shops > end user

Each of the business in the chain will collect GST, but GST registered company would be able to claim those GST paid back from the government so essentially only the end user is paying it.
*
Yes, forget about that. Anything, it's the end consumers that pay and the actual tax is more than 6% laugh.gif
SUSkevin23
post May 12 2018, 05:55 PM

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QUOTE(Zot @ May 11 2018, 05:14 PM)
I think it is the same depending on how much the rate. The difference between SST and GST is that the SST is charged only once like during importation but with GST the tax is applied on every transaction between seller and buyers.

Therefore, for the SST the tax is included in the price from very beginning and each time the transaction between seller and buyer, the price hike is on profit making. For the GST, the price hike also take place during each transaction due to profit taking but the GST is also gaining and accumulate in amount along the way. If the GST percent is lower, then probably end up the same like SST but probably previous govt is taking advantage on this.  smile.gif

The good thing about GST is that if there is any cheating, like paying less tax or avoiding tax totally, there is still chance tax will be collected during transaction along the way. For SST, once tax escapes during importation, then govt get nothing. This is what I think happened.

Correct me if I'm wrong  biggrin.gif
*
Spot on. GST is forced tax on everyone


I guess just wait till GST is abolished then get ur car. Besides, dont think they will huge price difference.

Manufacturers will just put in more stuff in the cars,higher specs etc
Eskape
post May 12 2018, 06:14 PM

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How would the abolishment of the GST affect importing cars then? Let's say I have a student AP and I want to bring a car back. From what I researched online, GST does not apply to imported cars using student APs right? There's only a 10% SST and no GST
TSLord Suave
post May 12 2018, 11:48 PM

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QUOTE(iamshf @ May 11 2018, 05:54 PM)
Just Googled, the old GST related post from Paultan

The car price was reduced a little after GST
cheaper by between RM500 and RM2,500 for Honda cars.
*
Honda which is CKD thus good indicator on the implication when it comes to CKD Merc or BMW
Penang_J
post May 13 2018, 01:18 AM

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Pakatan Harapan mentioned within 100 days will abolish GST, they are not stupid enough to revise the price upwards whereby people already complained about the price. We shall see a deduction soon.
WTF2008
post May 14 2018, 09:18 AM

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Have same dilemma as per TS.

And saw this

paultan

It seems depend on which car?

This post has been edited by WTF2008: May 14 2018, 09:19 AM
TSLord Suave
post May 14 2018, 10:02 AM

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After further digging and reading all the feedback here, I think the only logical thing if based on previous SST is prices will go up. The GST abolishment is an agenda driven to appease the general population after all. Between pleasing 2 million household and couple of thousand car buyers, the choice is certain!

nevertheless, nothing can be certain until official announcements are made and buying a car now is ones willingness to leverage/take the risk...

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