No date was mentioned for the re-introduction of SST, while the Goods and Services Tax (GST) will be zero-rated effective June 1, 2018.
"The shortfall from GST will be cushioned by specific revenue and expenditure measures that shall be announced in due course. Expenditure reduction will begin with rationalisation, efficiency measures and reduction in wastages," stated the Finance Ministry.
Price protection schemes for Proton, Nissan and Subaru cars
While national automaker Proton as well as Toyota, Lexus, Nissan and Subaru vehicle distributors have announced price protection schemes for their customers, other car marques such as Perodua, Honda, Mazda, Peugeot, Kia, Mercedes-Benz and BMW have yet to issue statements at press time regarding the situation.
UMW Toyota Motor Sdn Bhd president Ravindran K said any relief and benefit from the new tax structure will be fully passed on to Toyota and Lexus customers, and any price revision will be considered in the best interest of its customers.
Further information on the reduced On-The-Road prices of Toyota and Lexus vehicles can be obtained through the Toyota Freephone at 1800-8-TOYOTA (869682), Lexus Freephone at 1800-88-LEXUS (53987) or by visiting authorised Toyota or Lexus sales outlets.
Meanwhile, all Proton cars sold and registered from May 16 to 31, 2018 will include service vouchers equivalent in value to the difference between the current and new prices of the car after GST is zero rated.
“Proton is supportive of the new Malaysian government’s efforts to reduce the cost of living for the people. Despite zero rated GST only coming into effect on June 1, we have decided to reward our customers immediately as a token of gratitude for their support and in the spirit of the holy month of Ramadan,” said Proton vice president of sales and marketing Abdul Rashid Musa.
Additionally, Proton is offering a 6% discount on periodical maintenance (labour and parts only) at authorised service centres.
This service initiative will commence on May 19 to 31, 2018.
Customers servicing their cars from May 16 - 18, 2018 will be given a 6% discount at their next scheduled service (subject to showing the receipt from their previous service).
These offers are in addition to the current Kosong-kosong promotion where buyers of the Proton Iriz (Executive and Premium variant), Ertiga (all variants) and Exora (all variants) who sign up for 9-year loan tenures with Hong Leong Bank are eligible for 0% financing for the first year.
Those who opt for the Proton Saga or Persona instead and finance their purchase with a 7-year loan from Proton Commerce can get free 3-months instalment, subject to terms and conditions.
Also, TC Subaru Sdn Bhd has stated that unregistered as well as new bookings of all Subaru vehicle models will be price protected from May 11 till August 18, 2018.
If there are price hikes before registration of any booked Subaru cars due to changes in the tax regime, TC Subaru will honour the original, lower price.
Conversely, if prices drop, TC Subaru customers will get service vouchers equal in value to the price difference (up to a limit of RM3,000).
"For example, should a vehicle’s price reduce by RM1,000 after the change in applicable taxes, it shall be traded into a service voucher worth RM1,000. For unregistered bookings, should later prevailing prices drop at registration, the booking price will be adjusted correspondingly i.e if the booking price was RM100,000 and the prevailing price at registration is RM99,000, the lower price of RM99,000 will apply," stated TC Subaru.
Meanwhile, Edaran Tan Chong Motor Sdn Bhd (ETCM) sales and marketing director Christopher Tan said prices of passenger cars may see an increase if SST is re-introduced at the former rate of 10%.
"Almost all car brands, following the move from SST to 6% GST three years ago, saw a slight drop in prices. So, if the SST is implemented at the old rate of 10%, logically there will be an increase in prices. So, perhaps now would be the better time to to buy cars," said Tan during the launch of the Nissan Serena 2.0L S-Hybrid on Monday.
However, Tan said ETCM has a price protection scheme where beginning this month, Nissan car buyers will get a refund for the differences in prices, if prices for their new vehicles drop after GST is abolished.
"On the other hand, if car prices go up after GST is abolished, then those who buy their cars now will not lose," said Tan.
