Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz has confirmed that the sales and services tax (SST) exemption for the purchase of new vehicles will end on 30 June 2022 as planned.
Meanwhile, buyers who order their vehicles by the stipulated deadline will have an extended period of until 31 March 2023 to register their vehicles with the Road Transport Department (JPJ). This is because the installation of 264,000 units of vehicles – which were booked during the SST exemption period – has yet to be completed and delivered to the buyers. This extension, therefore, will allow the buyers to still enjoy the tax exemption.
“The extension of this vehicle registration period is a mid-point solution to balance the interests of consumers and national tax revenue which needs to be re-enhanced post-pandemic to ensure the welfare of the people and the economic well-being of the country continues to be preserved,” Tengku Datuk Seri Zafrul said, adding that the delay in the vehicle production is due to the global shortage of microchips.
In addition, the finance minister noted that 868,422 units of new vehicles have been sold since the implementation of the SST exemption back in June 2020. This translates to a total of RM4.7 billion in SST exempted.
For context, the ongoing exemption allows car buyers to enjoy a 100% waiver of SST for locally assembled (CKD) cars, and a 50% waiver for fully imported (CBU) cars. It was introduced in an effort to revive the country’s economy after the first movement control order (MCO). Initially set to end on 31 December 2020, it was eventually extended three times – to 30 June 2021, 31 December 2021, and finally, 30 June 2022.
(Source: The Star)
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