One of the new Pakatan Harapan government’s top campaign promises is to remove the current goods and services tax (GST) and reinstate the previous sales and service tax (SST). While the common perception is that the abolishment of GST will reduce prices of goods, it’s worth remembering that for cars, prices largely came down when 6% GST replaced 10% sales tax in April 2015.
Should there be an upward revision to car prices when the reverse happens, those who have registered or booked Subaru vehicles will not be impacted. TC Subaru has announced a Price Protection Scheme to protect customers against impending price movements.
According to the official Subaru distributor, registered as well as new bookings of all Subaru vehicle models will be price protected from now till August 18, 2018. That’s a period of 100 days, and the new government has said that it will fulfil its main promises within that timeframe.
In the event of upward price movement before registration of any booked vehicle due to the GST-SST migration, TC Subaru will honour the original (lower) price. If a car has been registered, and the new price under SST is lower, the customer will receive service vouchers equal in value to the price difference (up to a limit of RM3,000).
For example, should a registered car’s price go down by RM1,000 after the change of tax regime, the owner will get a service voucher worth RM1,000. For unregistered bookings, should later prevailing prices go down at registration, the booking price will be adjusted correspondingly – if the booking price was RM100,000 and the price at registration is RM99,000, the latter will apply. This is applicable to all registrations and bookings made from now until August 18, so there’s no reason to wait and see.
The chart above shows how sales tax and GST are applied on a car. Also read our in-depth article on GST and its impact on Malaysia’s automotive industry, with views from director-general of the Customs Department Datuk Subromaniam Tholasy and Malaysian Automotive Association president Datuk Aishah Ahmad.
Looking to sell your car? Sell it with Carro.
Now who says SST reduce prices? Either basher is correct or PT is wrong.
Semalam baru kawen, hari ni dah lahir anak…
Suggestions to new govt Pakatan Harapan:
– For car purchase above RM100,000 the buyers must mandatory wajib to fill declaration form that the source of income to buy car is legit clean halal from any money laundering corruption sources.
– Each declaration form must be submitted to MACC SPRM, LHDN Inland Revenue, PDRM Police & Interpol, Jabatan Audit Negara, Transparency International, JPJ Transport Ministry
– The purpose is to ensure the public to buy car using actual hard-earned money, stop money laundering thru vehicle purchase and to stop dubious corrupt donation culture.
Thanks for reading take note & pls spread it out.
just wondering, hour many man hours added to that transaction by using your suggestion? its either add more man hours, or add more to the, claimed bloated civil services…
libtards sure love big governments…
LHDN got all the manpower and info mah..
Why don’t you ask everyone to get police clearance first before allow to buy car.
getting my popcorn ready for mental gymnastics event…
They will still wank their “ini salahan previous gov” card anyways, and the zombies still will buy it.
why U worry
I dun wan suffer becoz of their brainless sapot.
car is part of our life..there are other things much more important related to GST that affecting our day to day
Car is a consumer product. If car price goes up with SST back, what makes u think other goods price wun go up?
Cars will be cheaper by 30% said pakatan before election…so have no fear.. on top of that all tolls will be abolished…so happy driving..why worry
(Like) Subaru Forester.
(Dislike) Proton Boyue SUV
Bapak P1 will spurn Boyue. “We should be proud that rakyat money is used to design and built our own car from scratch no matter how small the SUV market volume.”
smart.
B1jak.
deswai,,gst should not wuJud at the 1st place punn!
Well done
Tun M akan memperkasakan & mengembalikan kegemilangam Proton.
Correct. With Bapak P1 back, its time to re-nationalise P1 from Geely with our bailout money. Cars now too cheap for pipu to consider P1, so time to up the import tax too. Make P1 greater again!
Above blue and black chart is slight error, Insurance has its own SST applied back then. So as applied to handling & inspection fees (but we dun see this due to opaqueness of SST).
Actually if one look at the custom documents, they will find that the car will be taxed twice. First as the car itself. Second as a whole (incl). Madness. Go look now. 2 different GST figures. So that GST is actually more than 10% in total.
u really donno how GST work rite..
car 6%gst+insurance 6%gst +service parts 6% gst+service labour 6%gst .total 24%gst
that not how GST work dude..
car 10% SST+ handling fees 16%SST+ insurance 16%SST+ service parts 10%SST+ service labour 6%SST. Total 58%SST
Sorry bro.sst is not multilayered. It is per product cost and usually not visible.
Err, hence the multiplication of SST levels is correct unlike the rollover effect of GST.
That’s 1 portion but how about multi layer GST on materials?
On multilayer, GST rolls over until reach end customer. Any problem?
Gst is burdening multi layered car manufacturing in MY. Local produced car – cheaper. Direct import – more expensive
By hook or by crook, the new regime will show they capable to reduce the price after removing gst… good for consumers!
By hook or by crook, the new regime will show that if u want cheap car, ur only choice will be a P1. Gud for consumers!
P2 benefitted most on price reduction. Perodua is the gem to malaysians all walks of life
so what now? GST been put to zero rate but no mention of sst? what is the impact now? for sure will be cheaper right until sst being implemented.
thats what consumers want to see if price will reduce or increase or nothing will happen, after no SST and 0% gst take effect.