SST will bring down car price, say Perodua dealers, vendors

Sales of Perodua cars spiked between January and July this year. (Bernama pic)

KUALA LUMPUR: The sales and services tax (SST) structure is better for the automotive ecosystem, according to the Perodua Dealers Association (PDA) and Perodua Vendors’ Club (KVP).

KVP president Musa Zahidin Ahmad Zaidee said he hoped the government would continue to engage stakeholders in the automotive ecosystem, which ranged from auto vendors and original equipment manufacturers to dealers, on future policies.

The associations welcomed the new tax structure, which was only applied once at the beginning of the business value chain, saying it would reduce the price of Perodua vehicles.

PDA president Khairul Nizam Ayob said price reduction would go a long way and make the industry more attractive and competitive.

On Sept 3, Perodua announced that prices of its vehicles would be reduced between 1% and 3% for most of its models compared with prices under the goods and services tax (GST) era.

Perodua sold 140,900 units between January and July 2018, 18.8% higher than the 118,600 vehicles sold in the same period last year, according to the Malaysian Automotive Association.