TAX HOLIDAY Malaysians have a tax holiday that is a gap between the GST which is repealed at 1 June 2018 and when the SST is introduced at 1 September 2018
Malaysians have a tax holiday that is a gap between the GST which is repealed at 1 June 2018 and when the SST is introduced at 1 September 2018. Malaysians enjoy one of Southeast Asia’s lowest inflation rates and with the removal of a consumption tax, the consumers are getting benefits on the price goods. Tax holiday gives the opportunity to consumers to enjoy buying goods at a lower prices.
When the government announced that the GST will be abolished, many companies started to introduce offers to consumers to use cash in on the zero-percent GST to buy their goods. For example, Perodua and Proton are offering rebates for cars that sold before the end of the month to the consumers. Based on the offers, consumers just need to pay lower prices after the zero-percent GST or get the benefits through other means if they buy the cars before that date.
When the GST is at zero-percent, the consumers can buy a car because it is so much cheaper now. For example, prices of Perodua vehicles are are getting lower by average 5.6% when the GST are abolished. Other than that, consumers can hunt for new properties because of the reduction of new residential properties price due to the lower cost of construction following the zero-percent of GST for building materials and construction services. Consumers also take this opportunity to buy expensive or luxury goods which have become a little cheaper during the tax holiday. Rather than buy the expensive or luxury goods with GST or SST, the consumers can save some of their money for their own future and have the expensive or luxury goods by buying goods with the lower prices.