KUALA LUMPUR: The implementation of the Goods and Services Tax (GST) in 2015 should stimulate demand for vehicles with the reduction of prices due to the abolishment of the Sales and Services Tax (SST), said Malaysian Automotive Institute (MAI) chief executive officer Mohamad Madani Sahari.
The SST of 10 per cent will be abolished on April 1, 2015 and replaced with the GST which is set at six per cent.
"This should stimulate demand for cars and we do not expect any major impact on prices due to the implementation of the GST," he told reporters on the sidelines of the MAI-Lafarge Automotive and Logistics Safety Exhibition 2014 here today.
Asked whether sales of vehicles would declined since consumers adopt a wait-and-see approach prior to the GST, Mohamad Madani said so far sales had shown positive growth in spite of that.
"The total industry volume (TIV) is better this year compared to last year driven by aggressive sales campaign by industry players," he said.
"The TIV forecast for this year of 670,000 units has been renewed to 680,000 units, he said.
The MAI reported that the TIV for the January to July period was 11,490 units or three per cent higher than the corresponding period in 2013, driven by aggressive sales campaign by industry players.
"Sales are quite robust. With the launches of new vehicles this month and the forthcoming months, we believe the TIV will be higher from what has been forecast," he added.
Meanwhile, during the Automotive and Logistics Safety exhibition, Lafarge Malaysia Chief Executive Officer Bradley Mulroney said the company had various initiatives to educate drivers and transporters on road safety.
"This exhibition will create awareness on the importance of health and safety among the company's logistics personnel and the transportation services providers.
"We also work closely with our transporters to ensure that their vehicles are well-maintained and equipped with the necessary safety equipment," he added.-- Bernama