Malaysians have a tax holiday that is a gap between the GST which is repealed at 1 June 2018 and when the SST is introduced at 1 September 2018.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 GST-free rate to buy their goods. For instance, Perodua and Proton are offering rebates for cars that sold before the end of the month. Based on the offers, consumers just pay lower prices after 1 June 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 HYPERLINK “https://says.com/my/news/perodua-car-prices-slashed-up-to-rm3-500-after-zero-rated-gst” o “Link: http://says.com/my/news/perodua-car-prices-slashed-up-to-rm3-500-after-zero-rated-gst” “_blank” Perodua vehicles are are 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 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 tax holiday. Rather than buy the expensive or luxury goods with GST or SST, the consumers can save some money for the future.