With the Goods and Services Tax (GST) to be set to 0% from June 1, 2018, the retail prices of new motor vehicles (as well as all goods and services) should see a reduction. The reason why the government is not saying that it is the unpopular tax is abolished right away is because it requires a Parliamentary session to remove or change laws and the first session after the General Elections has not occurred. Therefore, the fastest way is to change the rate which is probably allowed under the law and setting it to a zero rate would have a similar effect as abolition.
GST is imposed at many different levels from the time the product is manufactured and so calculating it is not as easy as just adding 6% to the price. Many companies Motor Trader spoke to said they are still calculating the revised prices without GST and in the case of UMW Toyota Motor, the new prices that will be effective from June 1, 2018 are already available on their Toyota and Lexus websites.
“Any relief and benefit from the new tax structure will be fully passed on to its customers and the price revisions are considered in the best interest of customers,” said Ravindran K., President of UMW Toyota Motor which imports, distributes and markets Toyota and Lexus vehicles.
The price revisions range from RM3,958 to RM30,457 for Toyota models and RM16,815 to RM82,328 for Lexus models.
“Further information on the revised prices of Toyota and Lexus vehicles can be obtained at any authorised Toyota or Lexus outlet in Malaysia or at the respective websites www.toyota.com.my and www.lexus.com.my,“ he added.