Prepare yourselves, car buyers! It looks like another price hike is on its way as the government has recently increased the General Sales Tax (GST) on cars with engines of 1,400CC or larger from 18% to 25%. While there was previously some speculation that certain crossover SUVs with smaller engines might be exempt from this tax increase, the government has made it clear that all SUVs and crossovers will be subject to the higher 25% GST regardless of engine size.
The finance division has proposed increasing GST on non-essential items, including luxury cars, although this decision is still under consideration. This latest tax hike comes after the government previously increased GST on all cars from 17% to 18%, which led to a wave of price hikes. With this new tax hike, cars with engines of 1,400CC or larger will likely see another price increase in the near future.
In addition to the tax increase, the local currency has also been devalued further, which could lead to even higher car manufacturing costs. As a result, this upcoming wave of price increases may be more devastating than ever.
If you’re planning to buy a car soon, it’s important to keep these developments in mind and prepare accordingly. It may be a good idea to start saving up more money or consider purchasing a smaller car with a lower engine capacity to avoid the impact of the tax hike. Additionally, it’s worth keeping an eye on any further updates from the government regarding GST increases on luxury cars and other non-essential items.
Overall, the recent increase in GST on cars with larger engines is likely to lead to another round of price hikes in the near future. Stay informed and take steps to prepare for this potential increase in car prices.