Housing Prices to Drop 10% After SST, Cars Too

When talking about tax, it’s rarely good news… unless you are comparing the previous Goods and Services Tax (GST) to Sales and Service Tax (SST).

According to a report by The Star today (Sept 12), housing prices were prospected to drop 10% in Penang since the implementation of SST. Real Estate and Housing Develo­pers’ Association Penang (Rehda) had adviced the association members to lower the overall housing prices by 10% for those costing above RM300,000 and 6% for affordable housing.

“We will talk to our members and if they can reduce by 10% immediately it would be great, if not it would apply to all new developments.

“For affordable housing, which is partly subsidised by developers, we will look at reducing the price by 6%.

“The reduction will apply for all new projects after the implementation of SST this month,” said Rehda Penang chairman Datuk Toh Chin Leong in a press conference held by Finance Minister Lim Guan Eng.

Source: The Star

Toh added that the new levy system had reduced costs and the association urged its members to not profiteer on home buyers. Lim, who was previously the Chief Minister of Penang, commended the Rehda’s move and hoped that other states in the country would follow suit.

Separately, Lim also said that the car prices of certain brands had reduced their prices when compared to the regime of GST.

“I have received information that the prices of several makes of cars are much lower compared to when the goods and services tax (GST) was implemented.

“This is because we don’t collect as much (tax) compared with the GST, the prices of goods can be flexible and it is also adopted by the government to ensure prosperity for the people,” said Lim, as quoted by FMT.

The five brands were Perodua, Honda, Toyota, BMW and Volkswagen. Lim elaborated that Perodua Axia was selling at RM41,497 and with SST, it’s RM1,107 lower at RM40,390 under SST.

Source: mymotor

“For the Myvi 1.5 car, the price is now RM54,090 compared with RM55,300, Honda Jazz 1.5 is now priced at RM83,633 (previously RM85,750), Toyota Vios RM93,200 as against RM93,980 previously while the Volkswagen Polo is only RM74,900 compared with the price of RM76,888 with GST,” the Finance Minister continued.

Today, Lim reiterated that the prices of cars had gone down when compared to the GST regime by between RM2,000 and RM3,000.

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