Everyone says Goods and Service Tax is good. While it is increasing the coffers of the country for the country is good, the implications of it will be keenly felt in the coming few months. One of the hottest topics that gets asked is will car prices be lower or higher after the 10% Sales & Service Tax is replaced with the 6% GST? Here’s what Mr Yoichiro Ueno, Managing Director and Chief Executive Officer of Honda Malaysia has to say:-
“In the automotive industry, the difference in the car prices is not as straightforward as 10% minus 6% as there are many factors involved. The main difference in the tax calculation is the difference in the taxable base for SST and GST. For example, the SST was based on the distributors value of the car and is then charged 10% tax excluding dealer margins, transportation cost, handling fee, accessories and other miscellaneous distribution cost while GST is charged based on the final selling price of the car on the road.”
In other words, GST applies to all aspects involved in bringing the car to you and for politicians who claim that there is instant saving of 4% is oversimplifying the issue. The good news is, some manufacturers such as Honda has managed to reduce the selling price of some of their models. Here’s a quick look at some of the price differences between various manufacturers (effective 1st April 2015):-
Honda
HONDA MODELS | PENINSULAR MALAYSIA | ||
MODEL | VARIANT | CURRENT OTR (RM) | OTR GST |
(RM) | |||
Jazz | 1.5L S | 72,813.50 | 71,774.80 |
1.5L E | 79,813.50 | 78,756.80 | |
1.5L V | 87,813.50 | 86,985.70 | |
City | 1.5L S | 75,813.50 | 74,007.50 |
1.5L S+ | 78,813.50 | 77,124.40 | |
1.5L E | 83,813.50 | 82,269.50 | |
1.5L V | 90,813.50 | 89,467.80 | |
HR-V | 1.8L S | 99,815.30 | 98,690.40 |
1.8L E | 108,815.30 | 108,027.10 | |
1.8L V | 118,815.30 | 118,229.10 | |
Civic | 1.8L S | 113,815.30 | 113,198.70 |
2.0L S | 125,815.30 | 124,780.30 | |
2.0L Navi | 132,815.30 | 132,210.70 | |
CR-V | 2.0L 2WD | 139,815.30 | 138,069.70 |
2.0L 4WD | 150,815.30 | 149,152.40 | |
2.4L 4WD | 169,817.10 | 167,887.80 | |
Accord | 2.0L VTi | 139,830.60 | 137,301.90 |
2.0L VTi-L | 149,830.60 | 148,200.60 | |
2.4L VTi-L | 174,834.20 | 173,386.60 | |
Odyssey | 2.4L EX | 228,023.00 | 229,030.60 |
2.4L EXV | 248,023.00 | 248,536.00 |
Peugeot and Citroen, meanwhile stays as clear to its pre-GST prices as possible
PEUGEOT MODELS | PENINSULAR MALAYSIA | ||
MODEL | VARIANT | CURRENT OTR (RM) | OTR GST |
(RM) | |||
208 | 3-Door | 95,901.50 | 95,888.00 |
5-Door | 85,901.50 | 85,888.00 | |
S-variant | 86,901.50 | 86,888.00 | |
GTI | 139,901.50 | 139,888.00 | |
408 | 2 | 109,903.30 | 109,888.00 |
Turbo | 128,901.50 | 128,888.00 | |
Turbo L | 120,305.50 | 120,292.00 | |
Turbo S | 118,253.50 | 118,240.00 | |
2008 | 119,901.50 | 119,888.00 | |
3008 | 153,901.50 | 153,888.00 | |
5008 | 159,901.50 | 159,888.00 | |
508 | Premium | 169,901.50 | 169,888.00 |
SW | 179,901.50 | 179,888.00 | |
GT | 199,903.30 | 199,888.00 | |
SW GT | 209,903.30 | TBC | |
RCZ | Auto | 271,901.50 | TBC |
Manual | 248,901.50 | TBC |
CITROEN MODELS | PENINSULAR MALAYSIA | ||
MODEL | VARIANT | CURRENT OTR (RM) | OTR GST |
(RM) | |||
DS3 | 117,901.50 | 117,888.00 | |
DS4 | 149,901.50 | 149,888.00 | |
DS5 | 188,901.50 | 188,888.00 | |
Grand C4 Picasso (Diesel) | 189,903.30 | 189,888.00 |
Proton, like Honda has managed to reduce the selling price of all its models. A complete list of the pre- and post-GST pricelist can be found here: proton_on_the_road_price_after_gst
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No official price list from Toyota yet but according to UMW Toyota Motors, there will be a price reduction of up to RM4,000 for selected Toyota and Lexus models.
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All in all, we’re looking at a reduction of about 1-2% as earlier forecasted by some analysts. As for the rest, well, we’ll just have to wait till they’re available as we compile them here
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