There is growing speculation about a possible increase in the service tax from 6% to 8%, effective March 1, 2024. Although there’s no official confirmation, the Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) is preparing for the potential impact. One significant area that could be affected is vehicle repairs and maintenance, which does not fall under the exempted categories for the higher tax regime.
While this adjustment is not expected to directly influence car prices, it is likely to result in higher maintenance costs for vehicle owners. According to The Star, the FMCCAM is planning to engage with the government, requesting considerations for small workshops and owners of second-hand cars by seeking an exemption from the additional 2% tax.
Datuk Tony Khor, President of FMCCAM, acknowledges that while the increase may seem small, it could have a notable impact on second-hand car owners with limited budgets. Despite concerns, Khor emphasises the importance of maintaining vehicle safety and roadworthiness.























