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.