In a brand new twist, the federal government has now introduced through a memo issued to the Malaysian Automotive Affiliation (MAA) and Malaysian Affiliation of Malay Car Importers and Merchants (PEKEMA) that there’ll an extension to the brand new car gross sales tax exemption interval to June 30, 2021. We’ve since checked with MAA, who confirmed the matter.
The gross sales tax exemption, which has been in place since June 15, was initially scheduled to return to an finish on December 31 this 12 months. In response to the memo, the proportion of gross sales tax exemption stays unchanged from what was introduced earlier than, with 100% for locally-assembled (CKD) automobiles and 50% for fully-imported (CBU) automobiles.
Not too way back, the Malaysian Automotive Affiliation (MAA) revealed {that a} request to increase the gross sales tax exemption interval was denied, nevertheless it seems like the federal government has had a change of coronary heart.
The brand new car gross sales tax exemption is a part of the federal government’s Penjana programme with a purpose to spur demand throughout the native automotive market. The gross sales tax exemption has resulted in lowered costs for passenger automobiles, though pick-up vehicles will not be eligible as they’re categorized as industrial autos.
One other change of path that we just lately reported on pertains to the federal government’s choice to not change the excise obligation rules for CKD automobiles, which might have resulted within the costs of CKD automobiles going up, if put into motion. With each bulletins, it seems like automobile consumers have extra of an initiative to make their buy, so will you?
