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GST Knocks Down Car Prices

KUALA LUMPUR, April 1 (Bernama) — More companies have announced price reductions for their vehicles, following the implementation of the Goods and Services Tax (GST) effective today.[br]

Edaran Tan Chong Motor Sdn Bhd, Mercedes-Benz, Perodua and Sime Darby Auto Connexion have lowered their prices by up to RM10,000, in line with the government’s recommendation and the Anti-Profiteering Act 2011.

Sime Darby Auto Connexion, the distributor of Ford vehicles, reduced the price of the Ranger 3.2 XLT 4�4 Automatic to RM110,504.80 from RM110,506.45 previously, while the S-Max 2.0 is priced at RM198,833.41, from 198,933.90 before the GST.

Prices of Mercedes-Benz cars sold in Malaysia have gone down by up to RM10,000 from pre-GST prices.

“We are happy to announce that prices for our cars have been lowered following the implementation of the GST.

“This is fully compliant with the government’s recommendation and the Anti-Profiteering Act, 2011 and with the customers’ best interests at heart, we will continue to provide the best services and quality,” said Mercedes-Benz Malaysia Vice President, Sales and Marketing Passenger Cars, Mark Raine.

After the six per cent GST starting today, the price of the Mercedes-Benz E300 Blue TEC Hybrid decreased 2.87 per cent to RM338,888 from RM348,888 (without insurance).

Edaran Tan Chong Motor Sdn Bhd announced it was lowering vehicle prices by 0.3 per cent to 2 per cent for completely knocked-down models, although prices for completely built up models would remain unchanged.

Local carmaker Perodua cut its car prices by between 0.1 per cent and 1.6 per cent, but prices for spare parts have not changed.

However, Volkswagen Malaysia has maintained its nett selling prices (excluding OTR and insurance costs), inclusive of the GST.

Previously, all new cars were subject to a 10 per cent sales tax on the car’s Government Approved Selling Price.

However, the sales tax regime was abolished and replaced by the six per cent GST, which is a value-added tax, that is, a tax paid on the value added to a product or service.

— BERNAMA

Source : http://www.bernama.com/bernama/v8/bu/newsbusiness.php?id=1122273

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