Govt extends SST exemption for passenger cars until June 2021

The number of cars in Malaysia is growing faster than the country’s population and according to MAA data, in 1983, only 118,464 vehicles were sold in Malaysia, with about 80% in the passenger car segment (Pic: TMRpic)

at News

by RAHIMI YUNUS/ FILE PIX

THE government has agreed to extend the sales tax exemption for passenger cars to another six months until June 30, 2021.

In a letter from Treasury sighted by The Malaysian Reserve, it said Finance Minister has approved the sales tax extension for the period of Jan 1 until June 30 next year under the economic recovery plan Penjana.

Industry sources also confirmed about the tax incentive extension.

The government agreed to grant full sales tax exemption to completely-knocked down passenger cars including MPVs and SUVs and 50% for completely-built up units.

Industry players have been recommending the sales tax exemption to be continued to boost the sales momentum for automotive amid the pandemic.