KUALA LUMPUR (March 30): Perodua Dealers Association is imploring the government to allow them to reclaim the 10% sales tax on invoices issued prior to the implementation of the Goods and Services Tax (GST) on April 1.
The association’s president Wan Kamal Wan Ismail said this was because the government is currently imposing a 10% sales tax on new vehicles.
“This means that unsold stocks, [on] which a 10% sales tax [has] already been paid, will be hit by an additional 6% after GST on April 1,” said Wan Kamal.
“Each independent dealer will stand to lose an average of RM230,000 on double taxation, after April 1,” he said in a statement this evening.
He said Perodua dealers consist mainly of medium-sized companies and losses of this scale will have a huge impact on their business, especially on their cash flow and profitability.
The issue of GST and its impact on the automotive industry, especially on existing stocks and inventory, was raised by Malaysian Automotive Association (MAA) Datuk Aishah Ahmad in January this year.
“Under the Customs’ ruling for GST, whatever stocks that you have in hand as at March 31, if you’re not buying from a licensed manufacturer, you can only claim 20% of the sales tax and forgo the 80%.
“Come April 1, the car companies will have to add another 6% (GST) to their inventories. Eventually, car companies will have to decide whether to absorb the cost or pass it on to the consumer,” she was reported as saying.