Auto firms finalising revised prices
Sales tax exemption expected to boost industry following Covid-19 fallout
PETALING JAYA: Car companies are busy finalising their revised price lists following the exemption of sales tax effective tomorrow.
The suspension of the sales tax for cars until Dec 31 is expected to provide a much-needed boost for the sector following the economic fallout from Covid-19.
Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said there was a slight improvement in terms of orders following the sales tax exemption announcement by the government last week.
“That means there is interest. Previously, during the (pre-recovery) movement control order (MCO) period, it was bad,” she said.
In the Short-Term Economic Recovery Plan announced by Prime Minister Tan Sri Muhyiddin Yassin last week, locally-assembled cars would be fully exempted from sales tax, while imported cars would see their sales tax cut from 10% to 5% during the same period.
The sales tax exemption is expected to see buyers saving by up to more than RM10,000.
Commenting on the tax exemption, Aishah said many car companies were now announcing the respective savings and incentives to attract buyers.
“It is a very good move. We appreciate it and we would like to thank the government for providing this incentive to spur automotive sales,” she said.
However, Aishah expressed concern that more stringent loan approval process by banks could be another stumbling block.
“I think banks are more cautious because of the (loan repayment) moratorium.
“Some of them are short of cash, and you know, during bad times, customers have difficulties paying back, so they have to make sure there are no bad debts,” she said.
Volkswagen Passenger Cars Malaysia (VPCM) managing director Erik Winter said car buyers would benefit at the end of the day as they were always working towards making German engineering more affordable for Malaysians.
“This good news translates to more car buyers and offers a much-needed boost to the automotive sector that has been made dormant during the MCO,” he said.
In a statement, VPCM said customers could expect savings of up to RM3,881 on the Volkswagen Tiguan, RM6,133 on the Volkswagen Passat, and RM4,884 on the Volkswagen Gold R-Line.
Aside from price reductions, all Volkswagen models come with three years of free maintenance, a fiveyear unlimited mileage warranty, and a five-year roadside assistance programme.
A Honda Malaysia spokesperson said it would make an announcement soon.
“We believe that the nation’s economy will be back in its glory soon.
“We will also contribute to the economy in any way we can,” said the spokesperson.
Volvo Car Malaysia managing director Nalin Jain welcomed the sales tax exemption, saying the company was grateful for the opportunity to offer discounts.
“The incentives come at an opportune time, especially as the nation and the auto sector look towards recovery from challenges brought on by the pause in business operations.
“We are hopeful that the reduced price tags will encourage car buyers to invest in a car built with safety in mind, and in the short-term period, recharge the Malaysian automotive industry,” he said.