SST exemption for CKD vehicle packs only – report

SST exemption for CKD vehicle packs only – report

UPDATE: Story has been revised from the initial source report, which contained errors, to denote that SST exemption will only be for locally-assembled CKD vehicles packs, an exemption that has always been in place even with the old system.

Earlier today, Malaysiakini reported that car prices were set to remain, based on a list released by customs department director-general Datuk Seri Subromaniam Tholasy, which revealed that passenger motor vehicles are among the items that will be exempted from the sales and services tax (SST).

We have since learnt that the the proposed exemption list released today does not mean that there will be no SST being imposed on cars at point of sale. The exemption with regards to motor vehicles only applies to CKD packs – for sedans, four-wheel drives, station wagons and racing cars – and not the final assembled vehicles, so SST will still be factored into pricing when the time comes.

This being the case, car prices – which were revised as of June 1 following the zero-rating of the goods and services tax (GST) – are now expected to increase as of September 1 when SST makes its official return.

Finance minister Lim Guan Eng has said that there will be two different rates of 5% and 10% for sales tax, which is applicable to selected manufactured and imported products. Details will be announced when the new SST Bill is tabled in parliament next month.

The customs department has issued a statement to clarify the whole matter.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Guan yin ma on Jul 19, 2018 at 3:44 pm

    Only CKD vehicle exempted from SST. CBU still need to pay SST as written on the proposal by MOF.

    Like or Dislike: Thumb up 29 Thumb down 5
    • pokmad on Jul 19, 2018 at 4:33 pm

      Tuuu diaaa… Gomen bijak, rakyat sejahtera!

      Like or Dislike: Thumb up 41 Thumb down 3
      • Mustafa Kamal on Jul 19, 2018 at 4:56 pm

        Where is john, he said after Pakatan took over, all cars will go up 300%

        Where is john? Can john come here and clear this. All his postings said this.

        Like or Dislike: Thumb up 31 Thumb down 12
        • john never said that. please don’t be like the gov, simply talk but no prove. then later when they find out they were wrong, they do some u-turn pulak…

          Like or Dislike: Thumb up 6 Thumb down 2
    • John May 9 Nangis on Jul 19, 2018 at 4:50 pm

      OMG OMG OMG. What great news. This dispels all the fake news that New Malaysia going to see car prices shoot up

      Wow, so much good news. No GST. Broadband 10X speed upgrade…..

      What a great Government!!!!!!!

      Like or Dislike: Thumb up 45 Thumb down 4
      • haha…. u for real or troll jer.. haha

        what a great Gov that is~~~!!

        Like or Dislike: Thumb up 7 Thumb down 0
      • Rajoo Selvam on Jul 19, 2018 at 5:38 pm

        We waited for 5 years for the previous Government to give us 30% reduction in car prices. They promised in GE13. Promised so much. Nothing happned. We kena tipu

        Now Pakatan, within 90 days, already reduced car prices.

        I can clearly see who is a more honourable Government

        Like or Dislike: Thumb up 16 Thumb down 3
      • John May 9 Nangis on Jul 19, 2018 at 5:45 pm

        Such great news from the Government cause 90% of all cars are CKD anyway.

        Malaysians now save a lot. Even when I go 99 Speedmart, I see prices are so much cheaper than 4 months ago.

        We Malaysians now save so much of money.

        As I always said, once you clean up corruption, the Government will have so much of money to give back to the rakyat

        Like or Dislike: Thumb up 10 Thumb down 7
    • Actually the exemption should be on the importation of CKD pack components. After assembling the CKD components at factory, the assembled vehicle will be imposed with Sales Tax. Same practice as before GST.

      Like or Dislike: Thumb up 6 Thumb down 0
  • Woot Woot on Jul 19, 2018 at 3:45 pm

    Let’s buy in December then

    Like or Dislike: Thumb up 17 Thumb down 0
    • John May 9 Nangis on Jul 19, 2018 at 4:52 pm

      I cannot stop laughing at all the fake news passed the past few months.

      Another fake news is the RM1.50 petrol manifesto. No such thing. PH Government never made such promise in their manifesto

      Aiseh….so much of fake news from sour grapes.

      Like or Dislike: Thumb up 17 Thumb down 2
    • Ruslan on Jul 19, 2018 at 5:01 pm

      Ohh sharks! RV of my Accord dropped ano 6%.

      Like or Dislike: Thumb up 7 Thumb down 0
      • John May 9 Nangis on Jul 19, 2018 at 5:47 pm

        Once we clean up corruption and all the dedak takers as well as all the overpaid GLC directors, Malaysia will have so much of money to give back to the rakyat.

        Now, all this money can go to better our schools and hospitals

        30 million people are now happy they chose an honest and clean Government

        Like or Dislike: Thumb up 5 Thumb down 2
  • BOYRACER on Jul 19, 2018 at 3:49 pm

    How about motorcycles?

    Like or Dislike: Thumb up 8 Thumb down 1
  • Dark_Knight on Jul 19, 2018 at 3:52 pm

    Anthony, please verify the fact before post this kind of news. Malaysiakini made the mistake and then followed by Paultan….and many more others to come

    Like or Dislike: Thumb up 15 Thumb down 11
  • vedder on Jul 19, 2018 at 3:53 pm

    wow!!

    Like or Dislike: Thumb up 4 Thumb down 0
  • 4G63T DSM on Jul 19, 2018 at 3:55 pm

    So, if no additional SST being applied, meaning PH government managed to reduce car prices by 6% across the board.

    Well done. That’s certainly good news.

    Like or Dislike: Thumb up 34 Thumb down 2
  • Dark_Knight123 on Jul 19, 2018 at 3:56 pm

    This is not true, please verify the facts before releasing such information to public

    Like or Dislike: Thumb up 17 Thumb down 11
  • Insurance on Jul 19, 2018 at 3:57 pm

    But OTR will increase due to insurance being charged 6% right?

    Like or Dislike: Thumb up 0 Thumb down 10
    • 12yrsold john on Jul 19, 2018 at 4:30 pm

      Bro, 6% for insurance on RM50k is how much while 6% on RM50k is how much ?! Know the difference la otherwise my Uncle john may bash U for no reason.

      Like or Dislike: Thumb up 11 Thumb down 2
    • sohai on Jul 19, 2018 at 4:39 pm

      I don’t think so as I don’t remember paying 6% for insurance during the old SST period

      Like or Dislike: Thumb up 2 Thumb down 0
      • Insurance on Jul 19, 2018 at 5:07 pm

        There’s a FAQ in the customs website that says Insurance is a taxable service.

        Like or Dislike: Thumb up 6 Thumb down 0
  • Good news!! So now where is roti John??

    Like or Dislike: Thumb up 9 Thumb down 5
    • casual rider on Jul 19, 2018 at 4:10 pm

      i told him before don’t jump into conclusion before things confirm by authority

      Like or Dislike: Thumb up 5 Thumb down 3
      • https://paultan.org/2018/07/19/only-components-for-ckd-cars-are-sst-exempt-finished-product-to-have-sales-tax-customs/

        Yes, dun jump to conclusions. Hahahahaha!

        Like or Dislike: Thumb up 5 Thumb down 1
    • This gov is well known to Uturn. Lets wait and see whats the final turn. Hahaha!

      P.S Seems Dark Knight above caught something hanky panky with that announcement. Epic lolz!

      Like or Dislike: Thumb up 18 Thumb down 22
      • John May 9 Nangis on Jul 19, 2018 at 4:53 pm

        Nope. This is fake news again. No such u turn before. If you are jeles, pls keep quiet john.

        Learn to be happy that we have a clean Government now

        Like or Dislike: Thumb up 12 Thumb down 7
      • Nobody does u-turn better than Proton. Before this they see themselves as Conti cars competitor and look down on Japanese and what’s more the Chinese.
        Now they praise the Chinese and want to compete with the Japanese.

        Like or Dislike: Thumb up 4 Thumb down 3
  • Yea.. no 10% SST. No rush for tax holiday. yay ~

    Like or Dislike: Thumb up 9 Thumb down 3
  • m.achai on Jul 19, 2018 at 4:05 pm

    yahooo!!! now I can buy a lambo :D

    Like or Dislike: Thumb up 14 Thumb down 7
    • Lambo is CBU, so u kena sst..if u want CKD then it will be lembu

      Well-loved. Like or Dislike: Thumb up 70 Thumb down 1
      • Faris on Jul 19, 2018 at 5:06 pm

        This made me spill my drink. Well done.

        Like or Dislike: Thumb up 6 Thumb down 0
      • Loke Loke My Yew on Jul 19, 2018 at 6:47 pm

        You are shortsighted. I am thinking Tun M going to acquire lembu and kuda and declare it as new national car and will start to do CKD here.
        Ini macam 2020 vision with visionary mind.

        Like or Dislike: Thumb up 3 Thumb down 0
  • rauf hasim on Jul 19, 2018 at 4:06 pm

    Good move

    Like or Dislike: Thumb up 7 Thumb down 0
  • CT HO on Jul 19, 2018 at 4:08 pm

    This is People hope for long time.Great job PH.
    For those with 30 years old car above is time to stop running on the road.

    Like or Dislike: Thumb up 6 Thumb down 0
  • seancorr (Member) on Jul 19, 2018 at 4:10 pm

    Celaka now only tell us. Could have waited for Honda to replenish their stock ended up went with Nissan.

    Like or Dislike: Thumb up 6 Thumb down 6
    • Dong Gor on Jul 19, 2018 at 4:14 pm

      Buy a car that you like, not because it’s cheap. Seancorr so cheapo lor, if I were you just keep quiet d. keke

      Like or Dislike: Thumb up 19 Thumb down 1
    • simon on Jul 19, 2018 at 4:16 pm

      what car did you buy? Serena?

      Like or Dislike: Thumb up 1 Thumb down 9
    • songkok on Jul 19, 2018 at 4:54 pm

      cheapskate. u changed yr decision because of a 10% saving?

      Like or Dislike: Thumb up 0 Thumb down 0
    • sonyman on Jul 19, 2018 at 5:46 pm

      eh why nissan?

      Like or Dislike: Thumb up 1 Thumb down 0
    • halloha560 on Jul 19, 2018 at 8:32 pm

      TAKE NOTE that NISSAN have HUGE PROBLEMS. There are many REASONS of why Nissan have HUGE PROBLEMS. Firstly, Nissan carmakers have CHEATED EMISSION REGULATORS with DEFEAT DEVICES for ALL NISSAN MODELS. Secondly, There are also having MAJOR PROBLEMS for Nissan in which Nissan as a carmaker DIDN’T MEASURE PROPERLY for FUEL EFFICIENCY RATING (FUEL ECONOMY) for ALL NISSAN MODELS which IS MOST LIKELY to AFFECT to the ENVIROMENT. Now, Nissan as a carmaker is becoming NISSAN SCANDAL

      Like or Dislike: Thumb up 37 Thumb down 4
    • ohsnap on Jul 22, 2018 at 7:28 pm

      Ohhh snap!

      Like or Dislike: Thumb up 1 Thumb down 0
  • casual rider on Jul 19, 2018 at 4:11 pm

    i told him before don’t jump into conclusion before things confirm by authority

    Like or Dislike: Thumb up 2 Thumb down 2
    • https://paultan.org/2018/07/19/only-components-for-ckd-cars-are-sst-exempt-finished-product-to-have-sales-tax-customs/

      Like or Dislike: Thumb up 2 Thumb down 1
  • SST warrior on Jul 19, 2018 at 4:21 pm

    Only CKD cars, not CBU. CBU still implies SST

    Like or Dislike: Thumb up 7 Thumb down 0
  • Dark_Knight on Jul 19, 2018 at 4:21 pm

    Please check the Proposed Goods Exempted from Sales Tax released by Customs. They are referring to passenger cars CKD packages (loose components) for local assembly activity, NOT CBU after assembled or fully imported.

    So…this means all cars still subject to SST

    Like or Dislike: Thumb up 12 Thumb down 2
    • Is that what it means on Jul 19, 2018 at 4:30 pm

      A car is sold as a CKD. It doesn’t become CBU after assembly, it’s still CKD. This means a CKD car does not have to pay SST. Where does it say just for assembly?

      “Motor cars and other motor vehicles principally designed
      for the transport of persons (other than those of heading
      87.02), including station wagons and racing cars.

      Other vehicles, with only spark-ignition internal combustion
      reciprocating piston engine:
      8703.21 – – Of a cylinder capacity not exceeding 1,000 cc:
      – – – Completely Knocked Down:
      8703.21.15 00 – – – – Sedan
      – – – – Other motor cars (including station wagons and
      sports cars, but not including vans):
      8703.21.21 00 – – – – – Of four-wheel drive
      8703.21.29 00 – – – – – Other

      Like or Dislike: Thumb up 8 Thumb down 0
  • Don’t you love it when a news portal quotes another news portal?

    Like or Dislike: Thumb up 6 Thumb down 0
  • Elton John Connor on Jul 19, 2018 at 4:31 pm

    Lol. Those who bought cars during this so called “tax holiday” will no longer feel special

    Like or Dislike: Thumb up 14 Thumb down 0
    • Antonio on Jul 19, 2018 at 5:06 pm

      Still hv. Those ppl tht buy CBU cars get a tonne of savings. Insurance alone save alot already for luxury cars

      Like or Dislike: Thumb up 3 Thumb down 0
  • How about recon car ? SST’ed or not ?

    Like or Dislike: Thumb up 2 Thumb down 0
  • bieight on Jul 19, 2018 at 4:41 pm

    luckily I already bought my aston martin, Bentley, mclaren, jaguar, range rover and rolls royce.

    Like or Dislike: Thumb up 4 Thumb down 5
  • Dark_Knight on Jul 19, 2018 at 4:48 pm

    A car is sold as a CKD. It doesn’t become CBU after assembly, it’s still CKD. This means a CKD car does not have to pay SST. Where does it say just for assembly?

    Answer to Is that what it means:
    It’s CKD model not CKD car. CKD packages was declared CKD tariff code at port for clearance (no sales tax) but later when roll out from assembly plant, it must declare as CBU tariff code to Customs because it has been completely build up into a car (have to pay sales tax).

    Please check previous Sales Tax (Exemption) Order 2013, CKD tariff code also listed there, it is a same concept now ….Do you pay sales tax for CKD model before implementation of GST?

    Like or Dislike: Thumb up 5 Thumb down 0
    • Guan yin ma on Jul 19, 2018 at 5:15 pm

      Your brain masuk water ???

      Like or Dislike: Thumb up 2 Thumb down 1
      • Meaning there will be sales tax exemption to bring in CKD kits, but will there be same sales tax exemption when selling the car? Does the ministry clarifies this?

        Nicely spotted, Dark Knight. This is the tricky intricacies of SST when compared to GST.

        Like or Dislike: Thumb up 5 Thumb down 0
    • Johorean on Jul 19, 2018 at 7:03 pm

      It is the time now for MITI to urge all CKD car manufacturers to revise their Nett Selling Price before excise duty and sales tax so the final OTR price without insurance can be reduced.

      Like or Dislike: Thumb up 0 Thumb down 1
  • Rayc216 on Jul 19, 2018 at 4:55 pm

    CKD motorcycles below 250cc exempted from SST.

    Like or Dislike: Thumb up 0 Thumb down 0
  • C.P. MOHAN on Jul 19, 2018 at 4:55 pm

    If true that it applies to CKD models only, it kills two birds for me meaning Jobs and Prices. I am for it because CKD cars in Malaysia is not new hence ‘quality’ next incentive hopefully should be specifically for Public Transports.

    Like or Dislike: Thumb up 0 Thumb down 0
  • So only CBU cars will become expensive then?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Eternalgl0ry on Jul 19, 2018 at 4:57 pm

    This is stupid. Do you see any ckd 4×4 or pickups?
    Some of us must drive pickup to make a living

    They should also only include sst on certain cbu cars

    Like or Dislike: Thumb up 1 Thumb down 5
    • Paul Tan on Jul 19, 2018 at 5:01 pm

      Hilux and D-MAX are CKD pick-ups.

      https://www.carbase.my/search?on_sale=1&assembly=ckd&body_type=pickup

      Like or Dislike: Thumb up 12 Thumb down 0
      • Just an advice Bossman, but ur team shud hold of posting articles b4 getting the full info. Otherwise they wun have to issue another article to correct it. It just makes PT like a tabloid newsite. Cheers.

        Like or Dislike: Thumb up 4 Thumb down 0
  • All CKD? including all the luxury model like merc and bmw that are CKD here? Doesn’t make sense, should cap the sst free for ckd cars lower than RM100k.

    Like or Dislike: Thumb up 1 Thumb down 5
  • david on Jul 19, 2018 at 5:03 pm

    sorry, stupid question. May i know the new HRV facelift is CKD or CBU? because i just booked and would like to find out whether i have to pay extra 10% SST

    Like or Dislike: Thumb up 0 Thumb down 1
  • Andrew on Jul 19, 2018 at 5:04 pm

    if i book CBU car and pay booking fee now, but delivery only on Sep18, still got 10% SST?

    Also will the dealer allow to lock-in the price without SST after booking fee paid , or only after loan approved even though car not delivered yet before Sep’18?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Insurance on Jul 19, 2018 at 5:06 pm

    So the price will change right? I’m not being political, I’m asking if the prices will change come September because I know idiots will then point to this article saying price unchanged when the OTR is increased by RM300 and start making stupid comments.

    Like or Dislike: Thumb up 1 Thumb down 0
  • You better get better clarification.. CKD assembled car or only CKD car parts?

    Like or Dislike: Thumb up 6 Thumb down 0
  • Sorry, stupid question. May I know the new HRV facelift is CBU or CKD? because I just booked one and would like to find out whether I have to pay the extra 10% SST. Thanks!

    Like or Dislike: Thumb up 1 Thumb down 2
    • Benjamin Ong on Jul 19, 2018 at 5:40 pm

      CKD bro.. if CBU cannot be so cheap like thailand price. u see C-HR CBU from thailand, so the price higher than thailand. same like Civic, price same like thailand only. So don start the cb say malaysia goverment protection policy. our price already same as thailand for CKD and EEV car, don live 20years ago. Don be a sohai

      Like or Dislike: Thumb up 0 Thumb down 0
  • Ollie on Jul 19, 2018 at 5:09 pm

    The S450 CKD is priced at RM 695,000. The government is willing to forgo RM69,500 in SST. Great.

    Like or Dislike: Thumb up 3 Thumb down 1
  • Semi-Value (Member) on Jul 19, 2018 at 5:17 pm

    those recon cars all sure kena kao kao

    Like or Dislike: Thumb up 2 Thumb down 0
  • Robert on Jul 19, 2018 at 8:30 pm

    I’m thinking of getting the new subaru xv crosstrek. Is it advisable to get one now or wait until September 1st?
    Hope someone can help explain.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Robert on Jul 19, 2018 at 8:31 pm

    I’m thinking of getting the new 2018 subaru xv crosstrek. Is it advisable to get one now or wait until September 1st?
    Hope someone can help explain.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Matchy on Jul 20, 2018 at 8:39 am

    I lol’ed when reading the comments before the correction. You really think that the gov will forgo the tax of high value item?

    Like or Dislike: Thumb up 1 Thumb down 0
    • Bro Matchy. Its just the basher PH troll trying crow at his masters “gud news” but it turns out to be fake news. I belip those who have a gud laff had punished that fools comment in the retraction article. Just laff at his comments and move on.

      Like or Dislike: Thumb up 1 Thumb down 0
 

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