#1 A Golden Opportunity To Buy A Car
As part of the government’s move to zero-rate the GST, auto companies have revised their vehicles’ prices down. For example, Perodua has reduced the prices of its cars up to RM3,500. Yes, you read that right. Click here to see the newly revised price across the model line-up.
Amongst the companies that have also revised their vehicles’ prices are Volkswagen Passenger Cars Malaysia Sdn Bhd, UMW Toyota Motor Sdn Bhd and BMW Group Malaysia.
Additionally, according to Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) President, Tony Khor Chong Boon, used cars prices are also anticipated to be slightly reduced between 1% and 4% due to this trend.
So do take this chance to get yourself a car before the SST kickstarts in September. In a statement, AmBank Group Chief Economist, Anthony Dass, shared that car prices are expected to increase marginally after SST kicks in. That being said, he also said there are possibilities for auto players to probably absorb the cost (depending on the potential demand).
#2 Start Hunting For Your Dream Home
With GST out of the way, property experts/consultants have shared that this act would encourage the property buyers to make a purchase. According to a local daily, FD Iskandar, Real Estate and Housing Developers’ Association (Rehda) President, shared that property prices are expected to drop following the zero-rated GST implementation.
Sharing the same sentiment is Knight Frank Malaysia Managing Director, Sarkunan Subramaniam. He said: “With the announcement of zero-rated GST, property buyers who intend to purchase commercial properties can now make their decisions as the transaction price will now [from June 1] be cheaper, as they do not need to pay the 6% GST. For residential properties, as building and raw materials will not be charged 6% GST, the selling price is expected to reduce.”
SIDE NOTE: Still wondering if you’re eligible to get a house loan? Check out this tool. Otherwise, start comparing home loans and mortgage deals here, if you’re indecisive about it.
#3 You’ll Spend Less At The Supermarket
For most shoppers (if not all), 1 June 2018 was the beginning of happy days simply because they get to buy things at 6% less. We’re sure that you’ve witnessed a lot of the “0% GST” labels.
Recently, The Star had made a spot check to some of the stores if the price tag has changed. The local daily reported that a 1.2kg bag of cat food that was priced at RM14.90, became RM14.05, after 0% GST. Besides that, a packet of 3-in-1 coffee sachets, which was initially RM14.31, is now priced at RM13.50. These items were seen at AEON Supermarket.
Image via MalayMail
You can also see goods’ prices comparison from Hargapedia. It has been monitoring the prices of groceries, household, health & beauty products across 6 different retailers - Giant, Tesco, Econsave, Aeon Big, Aeon and 99Speedmart.
Nevertheless, don’t be confused with the already tax-exempted goods i.e. fresh and frozen meat/fish, fresh vegetables, spice and herbs, baby formula and more. Check out the full list from the Federal Gazette here.
#4 Smokers, Your Lungs Would Likely Be Less Intoxicated
OK, this may be bad news for some of us. In order to curb smoking habits amongst our fellow Malaysians, the government has decided to maintain the retail prices of tobacco products including cigarettes. This is also part of the commitment to the World Health Organisation Framework Convention on Tobacco Control.
The Finance Ministry made a statement recently that removing 6% GST should not be an excuse to sell cigarettes cheaper. This is because the product is harmful to your health and lowering the price would be a form of promotion which is conflicting with the Control of Tobacco Product Regulations 2004.
Perhaps we can look at this matter from a different lens. Maybe it’s time to slowly quit the bad habit and lead a healthier lifestyle. Who’s in?
#5 Electronics/ Gadgets Are Cheaper Now
Have you been planning to buy a new smartphone, laptop or any electronic stuff? This is the time. Before this, all the gadgets/electronics’ prices were inclusive of 6% GST. Now, with 0% GST, you can save up to a maximum of RM60 for a smartphone that is priced below RM1000.
Imagine how much you can save if the product is worth RM3,000. As an example, iPhone prices have been reduced up to RM334 due to the zero-rated GST. That’s a lot! However, do take note that the price might change once the SST is implemented.
#6 Complete Your Bank Transaction Without GST
If you’re the kind of person who frequently makes bank transactions to pay your bills, this must be good news for you. Why? Because you no longer have to pay 6% extra anymore.
FYI, all of the conventional commercial banks in Malaysia will be charging 0% GST for all banking products and services. This has been confirmed by the Association of Banks in Malaysia (ABM). If you need more info or have any banking issues, get in touch with ABM at 1-300-88-9980.
There you have it. Of course, there are more things that you can benefit from the 0% GST such as movie and concert tickets, electricity, telco services, insurance and more. As you can see, most of the everyday products and services have already been reduced.
If you still see the same old price, it could be that the stores are still in the midst of changing their price tags. According to the news, business premises are allowed to take some time to retag their goods with new prices following the requests for a grace period.
Image via Malaysian Digest
Having said that, please be wary and check your receipt again. Many netizens have been complaining on their social media that some businesses hike their prices after GST zerorisation. In case you encounter shops that still charge you 6% GST or exploit the zero-rated GST i.e. price hike, you can file a complaint to KPDNKK through these channels:
- Call 1Malaysia One Call Centre (1MOCC) at +603-80008000
- Call Information and Strategic Operations Movement Centre (PIGOS) at +603-88826088/6245
- Use this app called Ez ADU
- Send an email to firstname.lastname@example.org