SST exemption extension depends on MoF, says Wee

by SHAFIQQUL ALIFF/pic by Bernama

THE decision on the extension of Sales and Service Tax (SST) exemption will be made by the Finance Ministry (MoF), says Transport Minister Datuk Seri Dr Wee Ka Siong (picture).

He said when the government decided to implement the SST exemption during the Covid-19 pandemic, the automotive market, especially the second-hand car businesses, were able to operate their business.

“The incentive helped car dealers to boost the economic sector and our recovery, and the Transport Ministry (MoT) is able to see through the transactions at the Road Transport Department.

“As MoT, I see car dealers and transactions running smoothly so it is an encouraging thing because we are moving towards economic elections. However, we need to consider the country’s financial capabilities and for that, I will leave it to the Finance Ministry,” he said

The minister said he would meet and share his thoughts on the matter with Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

“So, we need to look in a holistic context and what is the priority to all parties whether the extension will give good or bad to all parties,” Wee said after the launch of the Atlas Automotive Operating System yesterday.

Prior to this, the Malaysian Automotive Association (MAA) appealed to the government for the extension of the current sales tax exemption, which will end June 30 this year. 

“The MAA has appealed to Finance Ministry to extend the sales tax exemption, but so far, we have not received any feedback,” MAA president Datuk Aishah Ahmad said.

According to MAA, sales of new vehicles in Malaysia increased to 43,722 units in February 2022 from 40,581 units in January 2022.