KUALA LUMPUR (Apr 1): UMW Toyota Motors Sdn Bhd, a subsidiary of UMW Holdings Bhd (fundamental: 2.2; valuation: 1.2), said the price of its Toyota and Lexus models will drop by up to RM4,000 or 2% following the implementation of the Goods and Services Tax (GST) today.
"There will be price reduction up to RM4,000 or 2% for Toyota and Lexus models. UMW Toyota Motor vehicles will pass 100% of the cost savings to the customers upon purchasing any Toyota and Lexus models during the new tax structure's implementation," said UMW Toyota Motor president Datuk Ismet Suki, in a media statement today.
Under the GST regime, UMW Toyota added that there are different implications to businesses in various areas ranging from tax computation, collection, refunds, and reconciliation to costing, as compared to the existing Sales and Services Tax system.
On Monday, the Malaysia Automotive Institute said car prices will drop by between 1% and 3%, based on a study it conducted.
The GST starts today.
Ismet added that UMW Toyota would be transparent in its business transaction and it would strictly adhere to the Price Control and Anti-Profiteering Act 2014.
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