A tax break in the form of zero-rated Goods and Services Tax officially came into effect this 1st June (2018), but what does this all mean for the Malaysian homeowner?
We are just as excited as everyone else at the prospect of enjoying a tax break for a whole three months—it is definitely a rare event when everything from property to groceries temporarily becomes more affordable. In the following guide, we take a look at the kinds of big-ticket products and services that will be made more affordable during this tax holiday.
If you’re wondering if a particular company will be offering their goods or services at discounts to match, or exceed, the six percent reduction entailed by the GST zero-rating during these next few months, visit Malaysia’s Customs website to lookup the GST status of a company. If a particular company is listed as a GST registrant, and if their offerings do not fall under the category of goods and services that are zero-rated, you can be certain that their price tags will feature lower figures.
While residential properties will remain in the “Exempt Supply” category of Malaysia’s Goods & Services Tax code for the foreseeable future, any improvements to your home would certainly entail the purchase of some building materials in addition to your acquiring the services of an interior designer. As these and other expenditures would be noticeably reduced with the zero-rated GST, you can expect your home makeover to cost significantly less during this tax holiday.
Even before the temporary tax break came into effect on 1st June, appliance makers were quick to announce sweeping discounts across their catalogues, with the fervour before the tax break compelling retailers to absorb the difference and hop on the discount bandwagon early—in most cases even before the month of May had concluded. This could understandably lead to a snowball-effect of other electronics manufacturers and retailers slashing prices in order to maintain relevance and get ahead of their competitors, the momentum of which can be enjoyed now—even beyond the expected six percent reduction in some cases.
Just as with appliances, furnishings often represent the bulk of expenditure when giving a home a makeover—and just as with appliance manufacturers and the retailers they work with, the catalogues of furniture retailers will be presenting lower prices during this tax holiday. Even retailers who pledged to absorb the six percent increase when GST was first implemented in 2015 will be reviewing their prices, and in many instances, offering reduced delivery and installation charges.