With GST now effectively in place of SST, Toyota Malaysia has announced the news that many have been wanting to know for some time now – how will cars be priced from 1 April 2015? Well, as explained by UMW Toyota Malaysia’s President, Dato’ Ismet Suki, there will be a price reduction by up to RM4,000 or 2 percent for both Toyota and Lexus models.
Suki also went on to say that they will pass 100 percent of the cost savings to customers upon any purchase of Toyota and Lexus models during the implementation of the new tax structure. They have also released an infographic of how GST works, as seen in the image below. Under this new GST regime – which applies to all car manufacturers and distributors alike – there are different implications to businesses in many areas including tax computation, collection, refunds, reconciliation to costing, as compared to the previous SST system.
As of now, we have yet to receive the post-GST price list from Toyota, but do bear in mind that the selling price as per the infographic above is not inclusive of insurance, which is also subjected to the 6 percent GST. Watch this space for the latest developments on GST and car prices.