The government is considering extending the exemption from sales tax on new vehicles!
The government is considering extending the exemption from sales tax (SST) on new vehicles to allow new car buyers to enjoy the concession, according to a message from Transport Minister Eric Wei.
The government introduced a sales tax exemption in June 2020 for the purchase of locally assembled vehicles (CKD) with a 100% sales tax exemption and a 50% sales tax exemption for the purchase of fully assembled imported vehicles (CBU). The government has extended this policy three times.
The sales tax exemption on car purchases has boosted the domestic auto industry and saved the financial lending sector, but it has also caused more congestion on the roads.
It is understood that 70% of car orders cannot be delivered to customers by June 30! The global supply chain is still tight, with a severe shortage of on-board chips leading to fewer vehicles, and many customers who have placed orders may not be able to successfully deliver their cars by June 30. If the government does not extend the measures again, this means that consumers will need to start covering the sales tax on their car purchases.
In the case of Perodua cars, the price difference between the Perodua Axia before and after the sales tax exemption would be RM700 to RM1700, the Perodua Bezza would be RM1100 to RM1600 and the Perodua Myvi would be RM1500 to RM1900.
