We’re now only a couple of weeks away from the April 1 implementation of the Goods and Services Tax (GST) in Malaysia. Much has been said, rumoured and conjectured since the new tax regime was announced in Budget 2014, particularly with regards to the car industry and the all-important, hotly-debated question: Will car prices go up or down with GST? Since the 6% GST will supersede the existing 10% sales tax imposed on new vehicles, it’s easy to assume that car prices will drop by 4%. Simple enough equation, but as we’ve found out, that will not be case. “Generally, I would expect a slight drop for new cars between 1-3%,” said Royal Malaysian Customs Department GST director Datuk Subromaniam Tholasy. Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad, however, isn’t quite so optimistic. “I do know some brands, prices will go up. Not everybody comes down,” she told paultan.org. Apart from car prices, we also discussed the … [Read more...] about GST and its impact on Malaysia’s automotive industry – will car prices go down come April 1?