Cover image via NST
Malaysia's Goods and Services Tax (GST) is zero-rated effective today, 1 June 2018
According to theSun, Malaysia has been granted a period of 'tax holiday' – the first time in 40 years – as taxes levied upon products and services will be halted for the time being.
Since GST has been reduced to 0% to pave way for the Sales and Services Tax (SST), which will only be reintroduced on 1 September, prices are expected to drop during this 'tax holiday' that will last for three months.
Image via @BYMK_11/Twitter
Here are some things that you can consider doing to capitalise on this 'tax holiday':
1. Buy a car because it's so much cheaper now
Many companies have revised the pricing for their cars and consumers could be saving thousands of ringgit than before.
For example, prices of Perodua vehicles are priced in average 5.6% lower now that there's 0% GST.
Even used cars are expected to be cheaper, according to Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) president Datuk Tony Khor Chong Boon.
Image via NST
2. Dine at a new restaurant that you've been wanting to try
It's going to be cheaper to eat out as restaurants are likely to drop their prices following the implementation of 0% GST.
Image via NST
3. Watch the latest movies in the cinemas
Image via Mohd Syafiq Rizduan Ambak/NST
Movie tickets should be cheaper now since no GST nor SST are levied within the next three months.
4. Complete all necessary banking transactions
Good news! The 0% GST will apply to all conventional commercial banks in Malaysia for all banking products and services.
So don't put off completing transactions like paying your bills.
Image via MyTimes via Rojak Daily
5. Shop for a new phone
Generally, prices of electronic items such as smartphones are expected to go down just as Apple has slashed the prices of their iPhones.
Image via Inverse
6. There's no better time to quit smoking
While most prices of goods are expected to go down, the Health Ministry has decided to maintain the price of cigarettes although GST has been zero-rated.
"There will not be any decrease in price. That is our commitment to ensure that the prohibitive price is going to be one of the ways to prevent the use of cigarettes," the new Minister of Health, Dr Dzulkefly Ahmad, was quoted as saying by The Star Online.
Image via Lawyerment.com
7. Stock up on the necessary pharmaceutical products you need
Local pharmacies have revised their pricing on the affected goods sold since GST has been reduced to zero.
When GST was first implemented at 6% in 2015, many drugs and medical equipment were still subject to GST although GST was said to have little impact on healthcare.
Image via Harian Metro
8. Make the most out of your current mobile plans or deals
Most telecommunication (telco) providers should have already revised their pricing for their respective products and services in view of the recent GST changes.
Get to know the latest pricing from different telcos in case there are plans that offer better value for money.
Image via Bloomberg/Getty Images
9. Hunt for new properties
Speaking to StarBizWeek, KPMG Head (North) Datuk Ooi Kok Seng said that it is possible to see reduction in the selling price of new residential properties due to lower cost of construction following the zero-rating of GST for building materials and construction services.
The Star Online also reported Real Estate and Housing Developers Association (Rehda) Perak chairman Tony Khoo Boon Chuan as saying today, 1 June, that sales are already picking up for both commercial and residential units.
Image via Kinibiz
What are your experiences so far during this 'tax holiday' season? Share with us in the comments section below.
Image via theSun
