Not everything will be more expensive with the new Goods and Services Tax (GST), certainly not cars from Toyota and Lexus. But it’s not as simple as 6% GST replacing the old 10% sales tax for a 4% reduction either, as UMW Toyota Motor (UMWT) is keen to explain.

“There will be price reduction up to RM4,000 or 2% for Toyota and Lexus models. UMW Toyota Motor vehicles will pass 100% of the cost savings to the customers upon purchasing any Toyota and Lexus models during the new tax structure’s implementation,” said UMWT president Datuk Ismet Suki.


A UMWT press statement explained that under the GST regime, there are different implications to businesses in various areas ranging from tax computation, collection, refunds, reconciliation to costing, as compared to the outgoing Sales and Services Tax (SST) system. See the attached chart for a better idea of how GST works, and read our GST feature to learn more.

Affirming UMWT’s support for the implementation of the GST, Ismet said the company would be transparent in its business transactions and will strictly adhere to the Price Control and Anti-Profiteering Act 2014.

There has been an issue of pre-GST stocks being “double taxed” but UMWT has committed to not transfer increased cost of business to customers, even for pre-GST stocks. Also note that the price reduction in question here exclude insurance, which will now be subject to its own 6% GST.

We will update you with the prices of Toyota and Lexus models with GST once they are released.