The effect of the zero-percent of Goods and Services Tax

The effect of the zero-percent of Goods and Services Tax (GST) on 1 June 2018 and the Sales and Services Tax (SST) which in 1 September 2018 Malaysians will be taking a breather from taxes levied upon products and services for a period of three months for the first time in four decades.

With the zero- percent of GST, demand would increased for goods and services because of the prices of goods and services will getting lower. For example, car is cheaper at zero-percent of GST such as prices for Perodua vehicles are priced lower for average 5.6% when the zero-percent of GST. Other than that the reduction of the selling price of new residential properties made the demand of commercial and residential units increased. This is due to lower cost of construction following the zero-percent of GST for building materials and construction services.