GST zero-rated: Subaru prices down by up to RM17k in June, Price Protection Scheme continues till August
TC Subaru has released a new price list that will come into effect from June 1, when the goods and services tax (GST) will be rolled back to 0% from the current 6%. The effective removal of GST was announced by the new Pakatan Harapan government two days ago, fulfilling a major campaign promise.
These new prices – which, typically for TC Subaru, are on-the-road excluding insurance but inclusive or standard discounts – will remain in effect until the sales and services tax (SST) comes back in to replace GST. The return of SST was not mentioned in the 0% GST announcement two days ago, but the finance ministry confirmed yesterday that SST will be back, although no date was given.
Without GST, savings range from RM6,681 for the locally assembled XV 2.0i to RM17,460 for the CBU Japan WRX STI. There are slight variations in the percentage of reduction, which is typically slightly less than 6% flat. This is because 6% GST is only applied on the selling price of a car (and in the case of CBU models, a Puspakom inspection fee), before GST-free registration essentials (road tax, registration fee, ownership endorsement fee) are added on.
You might recall that Subaru was the first car company to respond to potential impact of price changes following Pakatan Harapan’s shock election win, due to the coalition’s promise to abolish GST. The Price Protection Scheme‘s aim was to shield customers from price fluctuations that were not on their side, and to counter the “wait and see” sentiment.
The scheme spelled out that in the event of a price increase of any booked vehicle that is not yet registered due to tax regime changes, TC Subaru will honour the original (lower) price. If a car had been registered, and the new price is lower, the customer will receive service vouchers equal in value to the price difference (up to a limit of RM3,000).
We now know for sure that prices will come down on June 1, so most potential customers will wait for next month to make a purchase. But if for some reason a customer wants to purchase a Subaru this month, he will be charged 6% GST before receiving service vouchers to make up the difference in return.
In any case, the Price Protection Scheme will be in effect till August 18. We know that it’s a matter of when, not if SST will be back, and when it does, prices will surely be higher than in the June price list. So, the coming months will be a great time to buy a Subaru if you have been eyeing one.
via Paul Tan’s Automotive News https://paultan.org
May 18, 2018 at 03:47PM