Here’s how much smartphones would cost with 0% GST

Posted:  May 16, 2018   By:    30 comments   

Smartphone Malaysia price 0% GST

The Malaysian Government has just announced that GST will be zero-rated starting next month. What this means is that GST for affected goods and services will be reduced from 6% to 0%.

If you’re wondering what’s the impact on smartphone prices, we’ve got it covered. Read on to find out how much smartphones would cost with 0% GST.

At the moment, all smartphones sold in Malaysia are subjected to a 6% GST. If we take away that 6%, you could be saving about RM30-50 for phones that are priced below RM1,000 or more than RM200 if the price tag is above RM3,600. Below are some examples:

Obviously, the higher the price tag, the more savings you will get if GST is reduced from 6% to 0%. However, do note that GST isn’t abolished and the Ministry of Finance has imposed zero-rated GST until further notice.

The current administration plans to reintroduce SST to fully replace GST but it isn’t clear when this will be introduced officially. While it is more likely that smartphones will be slightly cheaper on 1 June but there’s also the possibility of SST or other forms of taxes being introduced. If it’s the former, it is probably a good idea to hold your smartphone purchase until the next month.

When GST was introduced in Malaysia on 1 April 2015, most smartphone prices had gone up by 6%. There are brands like OPPO that have decided to absorb the GST cost into their selling price. Before the tax took effect, several smartphone makers had also taken the opportunity to encourage purchase with pre-GST prices.

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The only items that are GST exempted are roaming charges (data and voice) and telephone calls. In 2016, the Government had started offering GST rebates for prepaid users as announced during the Budget. If you’re a Malaysian, the 6% GST will be refunded automatically to your prepaid balance after topping up.

What do you think of this zero-rated GST move? Let us know in the comments below.

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30 Comments for Here’s how much smartphones would cost with 0% GST

Dayne Kodama

Any news about 1+6 release in MY? Holding on till 1st June. P20 pro though.


Pricing with 0% GST seems retarded wtih all those decimals. Just an observation. Guess they will round them up soon?


How about SST? Before GST, SST was 10%.

    issac chan

    That’s not how you count GST and SST. GST involved the addition of 6% at every stage from manufacturer to retailer. The more number of intermediaries the higher the price will be. A Rm100 is not necessary to be RM106 after GST. In short, even if SST is 10%, the price will still be cheaper


      Better review your understanding of how gst works because you are wrong .

      Ray Tjhin

      Then the 0% GST shall be able to reduce the price of the goods for more than 6% at least, right? As per your explanation. Correct me if I’m wrong, thanks.

    Hamzah Puji

    Sst will change you on rm2000 above 10 % not like GsT before all items including control items. .


Actually if just calculate deduct 6% I don’t think that the correct way. Example: build a phone it need: all related electronic components (gst 6%), housing (gst 6%), electric (gst 6%), water (gst 6%), rantel (gst 6%), machine maintenance equipment (gst 6%), shipping/delivery (gst 6%), sell to distributor (gst 6%), distributor to retailer (gst 6%), retailer to consumer (gst 6%). So if just deduct 6% at retailer side, this totally a big cheat to consumer. Some more above just give a very simple flow.


    True that

    Muhammad Aiman bin Ghazali

    The gst u mentioned can be claimed back. So 6% or 0% should be same price


    I agree for what u told above… The consumer are get more lost

    Aaron Yap

    When u deduct like that , is the same as deduct entirely . Since u are multiplying the 6% from the entire price . It means all those components that have taxes which then added up after u multiply the overall price . EXP , u buy 2 books and u calculated the GST price by multiplying 6% of the overall price of the books . When you’re not sure wheater is true or not , u tried finding the GST price of each book and sum it up . IT ENDED UP THE SAME. Don’t worry, I tried b4


I thought…

when GST 6%,
consumer buy huawei p20 pro @ RM3299,
govt get 6% from RM3299

when GST 0%
consumer buy huawei p20 pro @ RM3299,
govt get zero

when SST if 10%
consumer buy huawei p20 pro @ RM3299,
govt get 10% of "COST" from manufacturing

consumer will only enjoy benefit, if business lower the selling price


    Yes your conclusion is right. The discount after gst 0% we will see how it goes later on 1st June..


    If they increase price you can report for profiteering. Supermarket can kena saman 140K for increasing bread by 30 sen.


GST/VAT & SST are two different regiment. I think, when the producer absorbed the gst into their product selling price that’s the hay-wire starts.


Ada ke PM ckp nak tukar GST kpd SST? Kau jgn memandai2 buat andaian sndiri. Ckp biar berlapik lah.

    GG Noob Kasier

    Tukar kepada SST, xdgr ke Tun M ckp. Habis perniaga besar2 nak dpt untung dari mana bro? Lain kali tgk berita baca surat khbar. GST dimansuhkan SST dikembalikan semula just SST xth berapa percentage lagi. Guna otak boleh?


    From AstroAwani:…

    Menurut Dr Mahathir, kerajaan baharu akan mengembalikan Cukai Jualan dan Perkhidmatan (SST) yang dilaksanakan sebelum ini.

    “Kita tidak perlukan cukai GST. Kita akan kembali ke SST,” katanya dalam satu sidang media di sebuah hotel di sini."


    katak xde duit beli surat khabar atau online?


    plz tengok berita, ko boleh beli internet service up to 10 ringgit tpi x tengok berita online


    ya, in 100days. Sure will cancle gst.


Your calculation are wrong. GST tax in multiple layers. Eg. Samsung sell the phone to distributor A tax 6% gst then to distributor B tax 6% gst and to reseller tax 6% gst then finally buyer tax 6% gst.

    Umno Forever

    Yes ….
    Ini betul …
    GST adalah sistem cukai kepada semua peringkat dari pengimport,pengilang,pengedar,penjual dan pengguna …
    Sebenarnya banyak harga meningkat sebenarnya disini untuk sesuatu barangan atau produk …
    Manakala SST hanya kepada Pengilang,pengedar,peniaga sahaja tidak kepada pengguna ….
    Mungkin mekanisma GST boleh digunakan untuk mengenakan cukai kepada yang bergaji paras RM 6500 keatas dengan mengguna pakai teknologi Mykad yang sedia ada pada Rakyat Malaysia …..


    Apparently u dont know how GST work


    6%+6%+6%+6%=24% GST??? You better follow Harith Iskander advise


I dont really care about GST OR SST.. Both may have differences though..
As long as the price dont go too overprice… : )


GST the way to go. Can reduce chances of underdeclare revenue and overdeclare cost among seller and buyer.. at least got check and balance between the two parties.. Heck, can also avoid potential corruption, where fake receipt can be detected easier than before..Not 100% foolproof, but at least its few use cases can be avoided.

Muhammad arshad bin mustapaha

Is that means everything that being tax 6% before will reduce price.. is that include buying house car as well ?