PETALING JAYA: Car prices will not go up because of the Sales and Services Tax (SST) system because they are exempted.
The list of exempted goods under GST includes sedans, four-wheel drives, station wagons and race cars.
It also includes various car parts, such as accessories, fuel pumps and fuel cut-off valves.
Car sales went up recently after the zero-rating of the goods and services tax (GST) in June, ushering in a tax holiday period until the SST comes into force on Sept 1.
The spike in car sales was based on the assumption that the government will restore the 10% SST imposed on cars prior to GST.