According to the President of the Malaysian Automobile Dealers Association (MAA), the association will submit a formal letter to the Ministry of Finance requesting for another extension of the sales tax exemption for vehicles, hoping to extend the sales tax exemption to all consumers of current orders, as the country’s car manufacturers have already piled up a large number of orders.
As the world continues to face a severe shortage of automotive chips, domestic automakers have stockpiled orders that cannot be delivered in time. It is understood that orders for Perodua have been waiting for at least five months, the Proton X series for six to eight months and Toyota Vios for two to three months.
If a customer places an order before June 30, but cannot pick up the vehicle until after June 30, they will not be eligible for the sales tax exemption. This is because the sales tax exemption is based on the date of delivery, not the date of ordering the new vehicle.
The sales tax exemption will be introduced from June 2020, which means that locally assembled vehicles (CKD) will be exempted from 100% of the sales tax, while imported fully assembled vehicles (CBU) will be exempted from 50% of the sales tax. Government has already extended the sales tax exemption concession for vehicles three times.
