GST zero-rated: Proton cars got cheaper by up to RM4.3K

KUALA LUMPUR: Proton has released a new price list for its models following the change in Goods and Services Tax (GST) from 6% to 0%. Fulfilling one of their major campaign promises, the new Pakatan Harapan government last week announced this rollback which will come into effect from June 1, 2018.

The new on-the-road prices excluding insurance will continue until Sales and Services Tax (SST) replaces GST. According to Tun Daim Zainuddin of the government’s Council of Eminent Persons, the change will happen gradually and it will take almost two to three months for the government to implement STT completely. Till that time, customers can enjoy these discounted prices on Proton cars.

As per the latest price chart, customers can now save as low as RM1,939 on the Saga 1.3MT Standard and as high as RM4,384 on the Suprima S. Savings on other models like Persona 1.6 MT Standard Solid, Iriz 1.3 Standard MT, and Ertiga 1.4 Executive MT stands at RM2452.70, RM2312.57, and RM3,120.22 respectively.

If you look at the current on-the-road prices (excluding insurance) of Proton models you will notice that the new prices are not exactly less by 6%. The reason being, only the sales price of a car includes GST and other price components like road tax, registration fees, and ownership endorsement fee are added to this cost (without GST). The overall amount forms the on-the-road price excluding insurance. Nonetheless, it still is a handsome amount of saving.

Proton was one of the first to react to this GST rollback. On May 17, the company announced that service vouchers equivalent to the price difference will be provided to customers who purchase between May 16 and May 31, so that prospective buyers don’t have to wait till June 1 to purchase. Moreover, the company also offered the option of cash rebates only a day after announcing the service voucher scheme.

Apart from the GST related savings, Proton is also running its Kosong-Kosong promotion which offers 0% first-year financing for selected models with Hong Leong Bank, free three months instalment with Proton Commerce and discounts up to RM15,172 for the YM2017 Suprima S. Also, the GST benefits are not restricted to new car sales only. Proton is offering a 6% discount for after sales (labour and periodical maintenance parts only), in case you need it in this month.