You no longer have to pay 6% GST on all your purchases from today

From today until the end of August 2018, the 6% Goods & Services Tax (GST) will no longer be charged when you make purchases as it has been zero-rated. It is not abolished yet as that requires an act of Parliament so the quickest way for the new government to enable consumers to have the benefit of not paying GST is just to set it at zero.

New vehicles will therefore be cheaper for the next few months until the Sales & Services Tax (SST) is introduced and it is to be 10%. At that time, prices will be revised again.

With no GST charged, Perodua’s cheapest model, the Axia, is now priced from RM22,621 in Peninsular Malaysia. It was priced at RM23,966 yesterday.

The reduction in prices is not necessarily exactly 6% but around that figure. For example, Perodua vehicles are, on average, priced 5.6% lower than before. There are also additional savings in insurance premiums which will also not incur the additional 6% GST as well as on parts and labour costs at service centres.

“As the government has announced that the Sales and Services Tax (SST) will return in September, we encourage all Malaysians to capitalise on this 3-month tax holiday. There has never been a better time to buy a Perodua,” said Perodua Sales Sdn Bhd’s MD, Dato’ Dr Zahari Husin.

GST is also no longer charged on parts and services so it’s a good time to visit the service centre, especially if you are going to be travelling a long distance during the coming holiday period.

During the second half of May, the carmaker has reimbursed customers the amount incurred for GST on vehicle purchases, parts and service. Dato’ Dr. Zahari said that this offer would no longer apply from today as customers no longer have to pay GST.

For those buying new vehicles this month, Perodua is offering rebates of up to RM800 for selected models and variants so there are additional savings as well.

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[Chips Yap]