GST zero-rated: UMW Toyota’s car prices get cheaper

GST zero-rated: UMW Toyota’s car prices get cheaper

On May 16, the ministry of finance (MoF) announced that Malaysia’s goods and services tax (GST), currently set at six percent, will be zero-rated (0%) from June 1 ahead of its eventual replacement by the previous sales and services tax (SST).

To reflect the upcoming changes, UMW Toyota has released the pricing for all Toyota models in its Malaysian line-up with GST zero-rated, effective June 1, 2018, the first automotive company to do so.

With GST effectively out of the equation, the entire Toyota model range automatically becomes cheaper. The price list below shows the new on-the-road price (OTR) without insurance excluding GST on the centre panel, comparing it to that with GST in place, with the price difference listed on the right most panel.

Those bothering to bring out the calculators will find that the difference in OTR pricing isn’t exactly six percent, but there’s no subterfuge involved or any hike in the existing selling price. Not just here, the difference will never directly be six percent based on an OTR price comparison with and without GST.

GST zero-rated: UMW Toyota’s car prices get cheaper

Click to enlarge

This is because the 6% GST is only applied on the selling price of a car (and in the case of CBU models, a Puspakom inspection fee), before everything else like road tax, registration fee as well as an ownership endorsement fee is added on top of that, these with no GST applied. Companies that publish nett prices should see a 6% reduction in the nett selling price, because nothing else is factored in.

A check of the existing GST-based price lists reveals that there is no change to the selling price for all Toyota models – it’s as that listed before the 0% announcement was made, and so the final figures of the new, revised pricing removes GST as per equation and adds in the rest to obtain the final new OTR price (for individual private registration).

In terms of specifics, a quick look at how things now shape up. The entry-level Vios 1.5J manual transmission, priced at RM74,980 with GST, will now go for RM70,752, making it cheaper by RM4,228. The new C-HR, currently priced at RM145,500, will go for RM137,700, or RM8,200 less than with GST in place.

Elsewhere, the Alphard 3.5 Executive Lounge, currently listed at RM540,800, will be priced at RM510,343 as of June 1, making it RM30,457 cheaper. Sounds good, as will be the case for all new cars in the country come the start of next month, but bear in mind that these prices won’t last – the eventual reintroduction of SST will float vehicle pricing back up.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • MeToo on May 18, 2018 at 10:34 am

    …. and when SST comes back?

    Like or Dislike: Thumb up 7 Thumb down 0
    • MeThree on May 18, 2018 at 12:22 pm

      Will more expensive fuhh. Chr 137k still expensive for b segment crossover. Hrv mugen worth to get, price sure will be lower after 0% gst by honda. Wait for it.

      Like or Dislike: Thumb up 8 Thumb down 17
      • MeToo on May 18, 2018 at 12:45 pm

        Complaint banyak buat apa? Belilah Proton Boyue

        Like or Dislike: Thumb up 9 Thumb down 2
        • Latuk Bandar on May 18, 2018 at 1:15 pm

          Mentality mesti Ubah.
          Tingkatkan prestasi, kurangkan controversy.

          Like or Dislike: Thumb up 19 Thumb down 2
          • Ubah. Belilah P1. Sapot Bapak P1.

            Like or Dislike: Thumb up 6 Thumb down 12
          • Rashid bin Ohwai on May 18, 2018 at 4:07 pm

            See, Pakatan just took over, car prices already gone down. Camry and Fortuner like RM11k down.

            Now we know, all the high prices before was to pay cybertroopers

            Like or Dislike: Thumb up 18 Thumb down 3
          • dtctr on May 19, 2018 at 11:24 am

            Cybertroopers who bash P1 and spread fake news. Now hiding under new gomen name

            Like or Dislike: Thumb up 1 Thumb down 0
    • Normal Guy on May 18, 2018 at 12:28 pm

      Cant afford to buy but harping on SST.
      Just be grateful, sekian…

      Like or Dislike: Thumb up 17 Thumb down 1
      • Pakatan - Clean Government on May 18, 2018 at 4:15 pm

        SO happy this site does not have paid cybertroopers anymore.

        Like or Dislike: Thumb up 3 Thumb down 1
      • Rashid bin Ohwai on May 18, 2018 at 5:01 pm

        Car prices have come down. And it will come down further cause we do not have a highly corrupted and zalim government anymore

        Like or Dislike: Thumb up 1 Thumb down 1
  • Digidigi on May 18, 2018 at 10:43 am

    Faster get it before sst kick in

    Like or Dislike: Thumb up 8 Thumb down 0
    • Nazim on May 18, 2018 at 11:39 am

      TQ Toyota. Adil & amanah

      Like or Dislike: Thumb up 12 Thumb down 4
    • Rashid bin Ohwai on May 18, 2018 at 5:11 pm

      Fake news cybertrooper said now got new Government, all non national cars will go up by 300%. But all I see here is, prices coming down.

      Fed up of fake news cybertroopers

      Like or Dislike: Thumb up 3 Thumb down 0
  • New Government New Hope for 30% on May 18, 2018 at 10:45 am

    Now it is not a good time to buy a car. The GST and SST are uncertain times. Eventhough Toyota has shown a reduction in car prices….it is uncertain times

    But forget this GST and SST which will be sorted in June. More importantly, one of Pakatan’s manifestos is to reduce car prices by 30%.

    You see, before BN made this promise of reducing car prices by 30% (which they never honoured), Pakatan, through their campaign “Turunkan Harga Kereta” also made this promise before BN did. This is why BN copied Pakatan’s promise to reduce car prices.

    Remember the campaign “Turunkan Harga Kereta” which we all put yellow stickers behind our cars? I think the campaign was strongly supported by Rafizi also.

    So, these are uncertain times. Pakatan Government will reduce car prices by 30% and honour their campaign promises.

    So, these are uncertain times. Even after June, if you buy a car, the same car might be 30% less later in this year.

    You buy RM100k now, later in the year, when the same brand new car is sold for RM70k, you will cry like a newborn baby with his pampers on

    Like or Dislike: Thumb up 16 Thumb down 12
    • Minah on May 18, 2018 at 2:34 pm

      If that is true(reduce 30%), I will cry also because I bought my car 3 years ago.

      Like or Dislike: Thumb up 8 Thumb down 0
    • eVaz88 on May 18, 2018 at 2:37 pm

      Everything takes time. dont expect ur wife to be pregnant when u just fk once. Give time to the old man. he’s been burning his candle profusely for rakyat.

      Like or Dislike: Thumb up 17 Thumb down 3
  • New Government New Hope for 30% on May 18, 2018 at 10:47 am

    I rather wait. With a good Government now, our ringgit will strengthen, thus eventually after a year, prices should fall further

    Why buy now when there is turmoil and just only the Government has changed. A bit kelam kabut now.

    Many korup will go to jail. Sales of cars also will drop a lot cause many have no free flow of money to use to buy cars.

    Previously a lot of money easy come easy go. Immediately people splash on cars.

    So demand and supply. Car prices will fall substantially cause now, people have to work hard for their money. And they will think many times before buying a car.

    During dirty days, money easy come, easy go.

    Don’t underestimate what a clean up does. Many potential buyers also now cannot afford because they have lost their jobs or lucrative contracts from the previous Government

    Like or Dislike: Thumb up 27 Thumb down 3
  • YB Albert on May 18, 2018 at 10:47 am

    Umw is killing 2 birds with 1 stone.Actually,they can afford to give more rebates.Just trying to be extra nice,cos stocks r building up fast as people kiv buying.Anyway,those who collected their Toyota’s earlier must be very crossed.Wah Liao…those collecting their cars after June 1 will be very pleased.

    Like or Dislike: Thumb up 12 Thumb down 0
    • tokok on May 18, 2018 at 3:11 pm

      YB, you wanna talk coockle doodle doo… harrier waiting period still is one year for the high spec, so which stock KIV you talking about?

      Like or Dislike: Thumb up 1 Thumb down 1
      • Rashid bin Ohwai on May 18, 2018 at 4:28 pm

        Malaysia now going to be anice country to live in….oh wai

        Like or Dislike: Thumb up 0 Thumb down 1
  • No need Raya promo. Buy now b4 16% SST returns to shock the rakyat.

    Like or Dislike: Thumb up 9 Thumb down 19
  • Akira on May 18, 2018 at 10:55 am

    Are you serious?

    Like or Dislike: Thumb up 1 Thumb down 0
  • maslan on May 18, 2018 at 10:56 am

    With GST, goods would become cheaper… Ohwai

    Like or Dislike: Thumb up 4 Thumb down 0
  • hateshonda on May 18, 2018 at 11:01 am

    C-HR still expensive lo

    Like or Dislike: Thumb up 6 Thumb down 0
    • Kancil Hybrid on May 18, 2018 at 11:43 am

      Bila naik dipersalahkan kerajaan. Bila turun kenapa tak puji kerajaan? Ada yg dah turun. C-HR dulu naik sekarang ni dah turun

      Like or Dislike: Thumb up 12 Thumb down 6
      • hateshonda on May 18, 2018 at 12:13 pm

        don’t get me wrong, I wasn’t refer to government… I am saying CH-R model still expensive compared its segment..

        Like or Dislike: Thumb up 10 Thumb down 1
    • They removed the GST, they didn’t get rid of all the other taxes. But given that Tun first introduced such to protect Proton, and now that’s no longer an issue. We may see those taxes go away. MAY. Jibby left a LOT of debt for us…

      Like or Dislike: Thumb up 4 Thumb down 0
  • now every1 can drive Alpad!

    Like or Dislike: Thumb up 1 Thumb down 0
  • john tipu on May 18, 2018 at 11:21 am

    Where is that john who said that car prices will increase by 300%?

    Like or Dislike: Thumb up 13 Thumb down 2
    • Rashid bin Ohwai on May 18, 2018 at 4:08 pm

      ha ha ha ha…yeah he said non national car sure naik 300%….another fake news?

      Like or Dislike: Thumb up 0 Thumb down 0
    • Michael Goh on May 18, 2018 at 4:47 pm

      Ignore john. He is now so shy and cannot show his face anymore

      Like or Dislike: Thumb up 0 Thumb down 0
  • Overpriced and empty spec car, no worth to buy

    Like or Dislike: Thumb up 5 Thumb down 5
  • Toyota 86 on May 18, 2018 at 12:07 pm

    How about Toyota 86

    Like or Dislike: Thumb up 4 Thumb down 0
  • Mikey on May 18, 2018 at 1:26 pm

    Alamak, those who took their car recently must be hopping mad to learn that it’s now cheaper.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Kerajaan baru harapan baru

    Like or Dislike: Thumb up 0 Thumb down 0
  • Car prices in Malaysia are among the highest in the world. Believe me.
    This scenerio has been too long and no one even look at it until now. It is easy to understand that all politicians are “busy with charity work”. Donate there,donate here…until they have no time to voice up this matter during parliamentary sessions. Why would they care about the car price matters?
    They can afford to buy Hummer if they want..but they just dont buy Hummer..only one or two did. They play safe…
    Now it is the time to urges new goverment to review the car prices in Malaysia.
    Dont just care the car dealer… goverment should care of the people who votes for them…For what i understand now,the car price in Malaysia is 100% higher than Australia. For instance,the Kangaroo sells one unit of car at RM80000 ( in RM) while in Malaysia car dealer sell it at RM160000..its 100% or two times higher.
    So the new goverment should review this matter immediately after the line up of new cabinet was set and will go for the first parliament session soon

    Like or Dislike: Thumb up 5 Thumb down 0
    • Rashid bin Ohwai on May 18, 2018 at 4:22 pm

      But john, a commentator here used to tell us that Malaysia had the cheapest car prices in the world. For 2 years he has been telling us this….mana nak bilip ni?

      Like or Dislike: Thumb up 2 Thumb down 0
      • Jeffrey jude rodrigues on May 18, 2018 at 5:17 pm

        If u compare against thailand, our cars are Rm 30k higher than thailand..i think gov taxes on these cars

        Like or Dislike: Thumb up 0 Thumb down 1
  • Bukan toyota malaysia ada model previa(estima) ka?

    Like or Dislike: Thumb up 1 Thumb down 0
  • Jeffrey jude rodrigues on May 18, 2018 at 3:20 pm

    I bought an altis 3 years ago and the price is the same…so what bullshit is toyota talking about?

    Like or Dislike: Thumb up 1 Thumb down 6
  • Gti owner on May 18, 2018 at 5:59 pm

    Now I only know vios got 7 type, why one model need so many type?

    Like or Dislike: Thumb up 1 Thumb down 3
  • With this reduce in price due to no GST, will the raya promo stil applies?

    Like or Dislike: Thumb up 1 Thumb down 0
 

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