The federal government says that there shall be no extension to the brand new car gross sales tax exemption past the stipulated interval, which is December 31. The 100% gross sales tax exemption for locally-assembled passenger vehicles (CKD) and 50% for fully-imported fashions (CBU) was introduced beneath the Penjana financial stimulus plan, and has been in place from June 15.
This was revealed in a doc issued by the ministry of finance in response to a request from the Malaysian Automotive Affiliation (MAA) for the SST exemption to be continued till June 30, 2021. The affiliation had written in to the ministry twice, on October 16 and December 7, asking for an extension.
In its reply dated yesterday, December 23, the ministry stated that whereas the finance minister has given the matter due consideration, the choice has been made to not lengthen the SST exemption interval for one more six months, confirming what MAA president Datuk Aishah Ahmad stated to us earlier right now. “On the subject of the SST exemption, MAA has obtained a rejection letter on the extension of SST after December 31, 2020,” she advised paultan.org.
With this, the gross sales tax for all new autos offered within the nation shall be re-incorporated into the promoting value from January 1. Nevertheless, autos which are in distributors’ fingers by December 31 will nonetheless be exempt from SST subsequent 12 months, however they must be registered by January 31, 2021.
