Perodua sellers, vendors laud SST as price drops result

Syed Jaymal Zahiid
Perodua announced yesterday that the prices of its vehicles will be reduced by between one and three per cent for most models. ― Picture by Choo Choy May

KUALA LUMPUR, Sept 4 ― The Perodua Dealers Association (PDA) and the Perodua Vendors’ Club (KPV) have responded positively to the Sales and Service Tax (SST), saying it has managed to help reduce the prices of Perodua vehicles.

The two groups said the tax, which imposes a tax of five to ten per cent for sales and six per cent for services, is only applied once at the beginning of the business value chain.

“Thank you very much to the government for engaging and explaining to the industry players how this new tax structure is implemented,” KVP president Musa Zahidin Ahmad Zaidee said in a statement today.

“Based on this new tax structure, the overall costs of Perodua vehicles was able to be brought down between one and three per cent (compared with prices under six per cent GST),” he added.

Perodua announced yesterday that the prices of its vehicles will be reduced by between one and three per cent for most models.

The second national car company also said the SST paved the way for cheaper prices compared to the Goods and Service Tax (GST).

“To Perodua, we wish to thank you for providing the volume, which has significantly sustained the Malaysian automotive ecosystem through components and parts purchased,” Musa said.

Perodua sold 140,900 units between January and July 2018, an increase of more than 18 per cent from 118,600 vehicles in the same period last year, according to the Malaysian Automotive Association (MAA) data.

The car company is among the first to announce a price reduction of its cars after the government reverted back to the SST on September 1, beating forecast that the tax would make them more expensive.

The current tax system is expected to make the automotive industry more competitive, PDA president Khairul Nizam Ayob said.

“Thank you to Perodua and the government for supporting the independent dealers. The price reductions... compared to GST-era prices will go a long way in making the industry more attractive and competitive.”

“We will work hard to serve our customers better and are proud to be part of the Perodua family,” Khairul Nizam said.

“To our valued customers, please visit Perodua showrooms and service centres nationwide to learn more about our new vehicle prices. Our authorised sales and service advisors will be more than happy to receive you.”

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