Published on March 31st, 2015 | by Daniel Sherman Fernandez0
Perodua Dealer Association pleads to claim 10% sales tax post GST
A statement by Perodua Dealer Association President Wan Kamal Wan Ismail. As the representative of the Perodua Dealers Association, I wish to plead with the government of Malaysia to allow us to reclaim the 10% Sales Tax on invoices issued prior to the implementation of the Goods and Services Tax on 1st April.
As an introduction to the issue, the government is currently imposing a 10% sales tax on new vehicles, however, after 1st April, the 10% sales tax will be replaced with a 6% Goods and Services Tax (GST).
This means unsold stocks, which 10% sales tax already paid, will be hit by an additional 6% GST after 1st April. Each independent dealer will stand to lose an average of RM230, 000 on double taxation after 1st April.
Perodua dealers consist mainly of medium-size companies and losses on this scale will have a huge impact on our business, especially on our cash flow and profitability.