Perodua Dealer Association pleads for sales tax reclaim

PETALING JAYA: Perodua Dealer Association is asking the government to allow its members to reclaim the 10% Sales Tax on invoices issued prior to the implementation of the Goods and Services Tax, which starts tomorrow.
Its president Wan Kamal Wan Ismail said currently the government imposes a 10% sales tax on new vehicles. This will be replaced with a 6% Goods and Services Tax (GST).
"This means unsold stocks, with 10% sales tax already paid, will be hit by an additional 6% GST after April 1st. Each independent dealer will stand to lose an average of RM230,000 on double taxation after April 1st," he said.
Wan Kamal explained that losses of such scale will have a huge impact on the business of its members, consisting mainly of medium-size companies, especially on their cash flow and profitability.