The government says that there will be no extension to the new vehicle sales tax exemption beyond the stipulated period, which is December 31. The 100% sales tax exemption for locally-assembled passenger cars (CKD) and 50% for fully-imported models (CBU) was announced under the Penjana economic stimulus plan, and has been in place from June 15.
This was revealed in a document issued by the ministry of finance in response to a request from the Malaysian Automotive Association (MAA) for the SST exemption to be continued until June 30, 2021. The association had written in to the ministry twice, on October 16 and December 7, asking for an extension.
In its reply dated yesterday, December 23, the ministry said that while the finance minister has given the matter due consideration, the decision has been made to not extend the SST exemption period for another six months, confirming what MAA president Datuk Aishah Ahmad said to us earlier today. “With regards to the SST exemption, MAA has received a rejection letter on the extension of SST after December 31, 2020,” she told paultan.org.
With this, the sales tax for all new vehicles sold in the country will be re-incorporated into the selling price from January 1. However, vehicles that are in distributors’ hands by December 31 will still be exempt from SST next year, but they have to be registered by January 31, 2021.