The implementation of the Goods and Services Tax (GST) in April 2015 should stimulate demand for vehicles with the reduction of prices due to the abolishment of the sales and services tax (SST), said Malaysian Automotive Institute (MAI) chief executive officer Madani Sahari.
The SST of 10 per cent will be abolished on April 1 2015 and replaced with the GST at six per cent.
â€œThis should stimulate demand for cars but we do not expect any major impact on prices due to the implementation of the GST,â€ he said on the sidelines of the MAI-Lafarge Automotive and Logistics Safety Exhibition 2014, here, on Saturday.
Asked whether sales of vehicles will decline since consumers may adopt a wait-and-see approach prior to the GST, Madani said so far sales have shown positive growth.
â€œThe total industry volume (TIV) is better this year compared with last year, driven by aggressive sales campaign by industry players,â€ he said.
The TIV forecast for this year of 670,000 units has been renewed to 680,000 units, Madani said.
MAI reported that the TIV for the January to July period was 11,490 units or three per cent higher than the corresponding period in 2013, driven by aggressive sales.
â€œSales are quite robust. With the launches of new vehicles this month and the forthcoming months, we believe the TIV will be higher from what has been forecast,â€ he added. Bernama