GST zero-rated: Hyundai prices cut-down by up to RM10,300

KUALA LUMPUR: Hyundai-Sime Darby Motor has released a new price-list of the Hyundai models, excluding the 6% Goods and Services Tax (GST). The new prices will come into effect on June 1, 2018, and will continue until the introduction of Sales and Services Tax (SST).

As promised during their campaign, the Pakatan Harapan government last week announced the removal of the 6% GST and said that it will soon be replaced by SST. There hasn’t been an official announcement as on when the SST will come into effect. However, Tun Daim Zainuddin of the government’s Council of Eminent Persons did say that it will almost take two to three months for the Finance ministry to introduce SST in the country.

That’s a good amount of time for customers to enjoy the discounted rates before SST is implemented and the prices go up again. And, mind it! The SST is going to be 10%, so you might end up paying more than what you had to pay during the times of GST.

According to the new price list, the savings range between RM6,500 on the Ioniq Hybrid and RM10,300 on the Starex 2.5 CRDi Deluxe. The Elantra 2.0 Executive which currently retails at RM116,388 will be available at RM109,888 (saving of RM6,500), while the Tucson 2.0 Elegance will be available at RM119,188 as against RM126,188 (saving of RM7,000).

If you notice, the variations are not exactly 6% less. That's because GST is only applied on the selling price of a car, while other components like road tax, registration fee, and ownership endorsement fee are later added on (without GST) to calculate the final on-the-road price (excluding insurance). But still, the saving numbers are quite healthy and will certainly encourage more customers to buy a Hyundai vehicle during this tax-free period.