Latest news with #MinistryofFinance
4 hours ago
- Automotive
Hit the Brakes: Slowdown in Japan Auto Exports to the United States
The impact of US President Donald Trump's tariffs has led to a sudden slowdown in Japanese auto exports to the United States. Japan's auto industry appears to have responded by lowering its prices to absorb the impact of the tariffs, prompting some analysts to predict a major blow to the profits of the industry as a whole. On top of his tariffs applied across the board to Japanese exports to the US market, Trump imposed an additional 25% tariff on automobiles and auto parts. The Japanese government has been negotiating with the United States in an effort to have the tariffs removed, but no agreement has been reached as of June. Recently, Trump has talked about further increasing the automotive tariffs. Trade statistics from the Ministry of Finance show that in May, the second month since the initial imposition of tariffs on automobiles, the export value of Japanese cars to the United States was ¥363.4 billion, which was the lowest level for over a year. This was down 24.7% compared with May 2024, far greater than the equivalent 4.8% year-on-year drop in April. While the decrease in the number of vehicles sold was only 3.9%, the fall in unit price was 21.7%. As there has been little change in the value of the yen since April, this is not a factor in reduced prices. NLI Research Institute suggests that Japanese automakers are absorbing a certain amount of the tariff costs by lowering prices. An estimate produced by the institute forecasts that if export prices continue to be reduced by 10%, this would mean a decrease in ordinary profits of ¥1.3 trillion for Japan's auto industry in fiscal 2025. This could be a greater hit than the fall resulting from a 10% reduction in sales volume, such as that seen if tariff costs were passed on to buyers in the form of higher prices. As noted by Saitō Tarō, who heads the institute's economic research department, 'Even if lower prices keep volume high, variable costs for things like materials will put major pressure on profits.' Impact of Trump Tariffs on Japanese Auto Industry (YOY) 10% reduction in sales volume Ordinary profits: Down ¥0.2 trillion Variable costs rate: Unchanged 10% reduction in prices Ordinary profits: Down ¥1.3 trillion Variable costs rate: Up 1.2% Taken by from an estimate by NLI Research Institute. The variable costs rate refers to the ratio of variable costs to sales. Data Sources (Translated from Japanese. Banner photo © Pixta.)
The Sun
10 hours ago
- Business
- The Sun
Refined sugar or white sugar remains tax-free under SST revision
KUALA LUMPUR: Refined sugar (or commonly known as white sugar) remains tax-free under the revised Sales and Service Tax (SST) that will take effect on July 1, 2025, said the Ministry of Finance (MOF). The MOF said in a statement today that raw sugar used in the production of refined sugar would be subject to a five per cent sales tax. 'However, as previously announced, manufacturers such as MSM Malaysia Holdings Bhd are eligible to apply for tax exemption on their raw materials and inputs. 'Hence, there is no reason for any increase in the price of refined sugar — especially since sugar refiners like MSM continue to receive monthly incentives from the government to ensure supply and price stability,' the MOF said. The MOF said this to clarify a statement issued by MSM regarding the impact of the sales tax revision on raw sugar.
Barnama
10 hours ago
- Business
- Barnama
Refined Sugar Or White Sugar Remains Tax-Free Under SST Revision
KUALA LUMPUR, June 20 (Bernama) -- Refined sugar (or commonly known as white sugar) remains tax-free under the revised Sales and Service Tax (SST) that will take effect on July 1, 2025, said the Ministry of Finance (MOF). The MOF said in a statement today that raw sugar used in the production of refined sugar would be subject to a five per cent sales tax. 'However, as previously announced, manufacturers such as MSM Malaysia Holdings Bhd are eligible to apply for tax exemption on their raw materials and inputs.
The Sun
10 hours ago
- Business
- The Sun
Refined sugar remains tax-free under SST revision
KUALA LUMPUR: Refined sugar (or commonly known as white sugar) remains tax-free under the revised Sales and Service Tax (SST) that will take effect on July 1, 2025, said the Ministry of Finance (MOF). The MOF said in a statement today that raw sugar used in the production of refined sugar would be subject to a five per cent sales tax. 'However, as previously announced, manufacturers such as MSM Malaysia Holdings Bhd are eligible to apply for tax exemption on their raw materials and inputs. 'Hence, there is no reason for any increase in the price of refined sugar — especially since sugar refiners like MSM continue to receive monthly incentives from the government to ensure supply and price stability,' the MOF said. The MOF said this to clarify a statement issued by MSM regarding the impact of the sales tax revision on raw sugar.
Straits Times
17 hours ago
- Business
- Straits Times
Forum: SRS withdrawal process to be improved
We thank Mr Francis Yeoh for his letter 'Take the queueing pain out of SRS withdrawals' (Jun 16). The Supplementary Retirement Scheme (SRS) aims to help Singaporeans save more for their retirement. Currently, SRS operators require members to be present in person for withdrawals and account closures, so that they can receive customised advice based on their individual circumstances. This helps ensure that members are aware of their eligibility for tax concessions and/or penalties, if any, relating to the nature of their intended transaction. We agree that the current withdrawal process can be improved for greater convenience. The Government will take Mr Yeoh's feedback into account, and work with the SRS operators to improve the current process. Farah Abdul Rahim Director, Communications and Engagement Ministry of Finance More on this Topic Forum: What readers are saying Join ST's Telegram channel and get the latest breaking news delivered to you.
