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Car prices may increase if SST is reintroduced

Nissan X-Trail which saw a price reduction of  RM1,953 and RM2,162 for the 2.0L and 2.5L version respectively

Nissan X-Trail which saw a price reduction of RM1,953 and RM2,162 for the 2.0L and 2.5L version respectively

Ahirul Ahirudin
Written by Ahirul Ahirudin

KUALA LUMPUR – May 15, 2018: Pakatan Harapan’s move to reinstate the Sales and Services Tax to replace the Goods and Services Tax may not be good news for car buyers, with some automotive manufacturers warning that the price of cars may increase.

Yesterday, Edaran Tan Chong Motors sales and marketing director Christopher Tan told the media that prices of Nissan vehicles may actually go up slightly if the previous 10 per cent sales tax was reinstated.

“Almost every brand, when we migrated from sales tax to GST, their prices actually came down a little bit,” said Tan.

“So if the situation is such that if the sales tax will be exactly the same as before, there could actually be a price increase.”

It’s worth remembering that for cars, prices largely came down when the 6% GST replaced the 10% sales tax in April 2015.

When GST was implemented, Subaru vehicles enjoyed price cuts of up to RM12,000 while Nissan vehicles enjoyed reductions up to RM2,700.

For example, the Nissan X-trail enjoyed a reduction of RM1,953 and RM2,162 for the 2.0L and 2.5L versions respectively.

Almost every other car brand in Malaysia also saw a reduction in prices, including for local manufacturers Proton and Perodua.

Despite the growing concern over impending price movement, the good news is that at least Tan Chong and TC Subaru has come up with a scheme to counter this.

Yesterday, they introduced a price protection scheme to protect customers against impending price movements for the next 100 days or until August 18.

It means that if you book a Subaru or Nissan today, you don’t need to worry if the price of a vehicle increases after SST is reinstated because the original price agreed upon booking will be honoured.

However, should the price decrease after SST is reinstated, the difference will be refunded.

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Ahirul Ahirudin

Ahirul Ahirudin