#11
vr2turbo
Posted 22 October 2014 - 02:50 PM
Yes, sales tax will be replaced by GST. So the sales tax system will no longer be in operation.
For imported tyres, the import duty will still need to be paid and (like the old SST system) GST will be added to the total cost of the tyre, i.e. (CIF cost + Import Duty + Markup) X 6%
If the product is high profit margin product then the tax will be very very high, because at selling price....
Posted 22 October 2014 - 11:43 PM
If the product is high profit margin product then the tax will be very very high, because at selling price....
Shouldn't it be cheaper, since GST is 6% while previously, SST is charged at 10%?
Regards,
Flee
#13
jeschong
Posted 23 October 2014 - 11:20 AM
jeschong
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Shouldn't it be cheaper, since GST is 6% while previously, SST is charged at 10%?
lotsa excuses can be used to 'offset' it
higher fuel price, interest rate blablabla
Posted 23 October 2014 - 06:41 PM
lotsa excuses can be used to 'offset' it
higher fuel price, interest rate blablabla
Of course - if fixed costs increase, the dealer will need to increase markup. That will ensure that the selling price before GST is higher. Most Malaysians know that prices will never come down when GST is introduced - traders will find any excuse not to reduce prices. The only traders that constantly reduce prices are electronics/IT traders.
Regards,
Flee
#15
Mikhai
Posted 24 October 2014 - 08:11 PM
Aside from GST, shouldn't be tires price drop? Coz the rubber price dropped 40% within a year...
#16
vr2turbo
Posted 28 October 2014 - 10:06 AM
Aside from GST, shouldn't be tires price drop? Coz the rubber price dropped 40% within a year...
In Malaysia, tax goes up, other thing goes up, when tax goes down, prices still go up, stating other reasons.....
#17
vr2turbo
Posted 28 October 2014 - 10:07 AM
Of course - if fixed costs increase, the dealer will need to increase markup. That will ensure that the selling price before GST is higher. Most Malaysians know that prices will never come down when GST is introduced - traders will find any excuse not to reduce prices. The only traders that constantly reduce prices are electronics/IT traders.
That is because of price war, and finding way to cut production cost all these while. That is why products do not last as long as before.....
Posted 30 October 2014 - 10:32 AM
That is because of price war, and finding way to cut production cost all these while. That is why products do not last as long as before.....
That is why free market competition is good.
If the tyre companies form a cartel to control prices, then it is not good and the Malaysian Competition Commission will investigate. With GST, they will have more data on costs. I wonder if the govt. knows what to do with all this data!
Regards,
Flee
#19
vr2turbo
Posted 30 October 2014 - 04:03 PM
Probably not bother, what they are interested is how much they can collect.....