Customers at a Perodua showroom. Filepic.
PETALING JAYA: Total vehicle sales increased 28% to 64,502 units last month, compared with 50,273 units a year earlier, bolstered by the reduction in car prices due to the zero-rated Goods and Services Tax (GST) and Hari Raya-related campaigns and promotions.
Year-to-date June, total vehicle sales grew to 289,714 units compared with 284,453 units in the previous corresponding period, according to the Malaysian Automotive Association (MAA).
On the outlook for the remainder of 2018, MAA president Datuk Aishah Ahmad expects vehicle sales to remain buoyant during the “tax holiday” period until the end of August.
Demand for cars surged following the zero-rating of the GST by the new Pakatan Harapan government from June 1.
Many automobile companies announced zero-rated GST prices, which led to substantial savings for car buyers.
This “tax holiday” period is however set to end with the reintroduction of the Sales and Services Tax (SST) on Sept 1.
On Monday, Finance Minister Lim Guan Eng announced that the provision of services will be taxed at 6% under the reintroduced SST, while the sale of goods will incur a 10% tax, effective Sept 1.
Under the proposed SST bill, goods will be taxed at 10%, while the provision of services will be taxed at 6%.
Aishah said stringent hire purchase loans and the introduction of SST in September will have an impact on vehicle sales.
As such, the MAA has revised downwards its 2018 total industry volume to 585,000 units from 590,000 units previously.
Total sales hit an all-time high of 666,674 units in 2015, then dropped almost 15% in 2016 before contracting further last year to 576,635 units.
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