Will the car sales tax exemption be extended? Wei Jiaxiang will consult with the Minister of Finance!
According to a message from Transport Minister Wei Jiaxiang, he will meet with Finance Minister Tunku Zafrul recently to discuss the extension of the exemption from the sales tax (SST). Wei Jiaxiang pointed out that the SST exemption does benefit the auto industry, but it will be up to the finance minister to decide whether to extend the measure.
The government introduced the sales tax exemption for car purchases in June 2020 to stimulate the domestic economy, and has since extended it three times and will end on June 30, 2022.
It is understood that 70% of car orders will not be delivered to customers by June 30! The global supply chain remains tight, with severe shortages 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.
