In his short-term economic recovery plan speech earlier this evening, prime minister Tan Sri Muhyiddin Yassin announced a host of measures to stimulate the country’s economy, which has been adversely affected by the Covid-19 pandemic.
For the automotive sector, these involve an initiative with a quantum of around RM897 million, aimed at boosting new car sales, which will effectively keep the industry moving and provide some financial relief to new car buyers.
The relief measures that were announced under the economic stimulus plan known as Penjana are a 100% sales tax exemption on locally-assembled (CKD) models and 50% on fully-imported (CBU) models, starting from June 15 until December 31, 2020.
The current sales tax rate under the sales and services tax (SST) for both CKD and CBU passenger vehicles is 10%, so for CKD this will mean the complete removal of the 10% rate on all locally-assembled cars for the period, while for CBU it will be halved to 5%.
As such, expect car prices to go down in the same way as it was when the 6% goods and services tax (GST), which was introduced on April 1, 2015 was abolished in June 2018. The result was a three-month “tax holiday” (until SST was reintroduced in September 2018) in which there was zero sales tax imposed on all new car sales. Of course, CKD vehicles will benefit more from this round of the tax holiday.
Seeing as the announcement was made just this evening, price revisions will only come about from next week on. We don’t know by exactly how much car prices will change, given that there are a few variables and differences since 2018, but our follow-up story provides a rough indicator of what to expect.
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So tax holiday again!!!!
Is now to book Proton X70, 10% discount. Pheww
No effect really because since 30 years ago, Malaysia has the highest car prices in the world.
Why?
Because all our car companies are GLC owned and Government knows these companies have no vision to work hard and merit on its own two feet. This is why
for 30 years, they perah the rakyat with the highest car prices in the world.
You mean companies like tan chong?
Its really too little and too late to Penjana. Rakyat continue suffer with incompetent gov, jobless and no food worst then penjara.
Malaysia should liberate car prices to be at par with at least neighboring Thailand. Or open up the AP to all. You’re harboring a few cronies at the expense of the 34 million Malaysians .
Highest car prices in the world and yet PH perah us until blood comes out with higher car prices. Lucky we only suffer 22 months of this most incompetent and corrupted government in the world.
you PN not PH
Let’s buy toyota/bmw/Mercedes/mazda/hyundai. As from honda owner will be selling soon
Besides these recommended brand, others like proton, volvo, hyundai, kia
Lost confidence in Toyota, will never give a chance. I’ll choose conti-car rather than Toyota.
This is surprisingly good news for Malaysians! Kudos to the government of the day.
I feel like this sales tax exemption should be only applied to energy efficient vehicles.
Ew
Do you realized how many thumbs down you got?
totally agree with u bro
Dylan Ch’ng is living in a rich man’s world.
BTW, poor ppl didn’t know there was a word named “hybrid”
may I know what is CBU tax rate in Malaysia ?
It’s a sales tax which is 10% regardless CBU or CKD. CKD will be 10% cheaper while CBU is 5%.
cbu.. between 75 and 105% for excise duty. and 10% for sales tax.
please read. it is mentioned in the article above
Jangan lupa motorsikal CKD :)
while for CBU it will be halved—> half
Halved is correct
Ok.
Good for new car sales but not so good for used car dealers.
2nd hand car dealers are mostly crooks. Know how to low ball car sellers & cheat car buyers. When I sold my car they point out this & that trying to justify lowering the selling price, until I got fair feedback & fair price from a professional used car retailer. Waste my time going to these ahpek towkays.
hi Damon Lee. May I know who is the professional car retailer? thanks
It starts with an M and ends with a V.
Cheating pipu is how taukes gets rich.
I want to know who the professional car retailer is too. I desperately want to buy a used car but with so many horror stories i am terrified to be stuck with a lemon. I really wish we could buy certified used cars but the choice for these is so limited espcially for japanese cars.
Used car dealers are the devils reincarnated. No pity whatsoever for them. Only buy used from a private seller. There is no added value to getting one from a dealer.
Removing the 10% sales tax will mean roughly 5% drop in actual selling price won’t it? I think the sales tax is applied to the pre-excise duty price
https://paultan.org/2018/05/16/gst-to-be-set-to-0-on-june-1-no-sst-until-later-on-what-are-the-implications-for-car-prices/
Many Malaysians are struggling to put food on the table. Banks are giving moratorium on car loans until September. How would making cars cheaper help Malaysians? Only the rich will benefit from the sales tax holiday and deductions.
that’s why it call porgram rangsang ekonomi. the purpose is to encourage those who can spend, spend now. So economy recover.
Ali bought new cars from Ahcai, then Ahcai got revenue to pay his employee Abu, Muthu & Ahbeng. Later they spend their income to buy foods & groceries and pay bills. PENJANA.
Have you seen the automotive sales number for the recent months? Yes, it’s to keep the rich car dealerships to stay afloat, but also for the thousands and thousands of employees in the industry to keep their job.
true. this tax break is meant for the rich anyway
That means you don’t understand how tax breaks works
It’s called stimulating the economy. It’s holistic. Something for all industry. We cannot think so shallow and narrow only to food on the table issue.
the percentage of rich to spend money is higher now. once they spend, money will start to roll from top to bottom. this is the main point.
Car become cheaper. Cars get sold. Car companies earn money to feed their employees. Their employees get to put food on their table for their family. Hawkers earn money. Grocery shops earn money. Rinse and repeat
but it was benefit me to buy new one..Currently i don’t have any car..just total lost before the mco started.
lol, ingatkan Halved —-> Harvinder Singh
100% sounds so big but it’s actually only 10%
so u must be failed in maths bro lol
Does it apply to Recond Car?
New cars only
relax. sales tax, not duties.
Relax. Very low duties for CKD cars so the masses still get a massive price reduction from this effort.
Vehicle prices are already high in Malaysia thus this exemption should be seen as a limited-period incentive, although personally do expect much in 2020 since mind is preoccupied elsewhere.
If everyone ignores this for 6 months, will the price drop further next year :)
By then, nobody will have a job anymore to afford for any car. So how?
kurang la harga rumah.. kereta xde pun ok.. rumah x de memanh susah
Ok..for x70 premium..how many % lower can get ..10% off otr price ??
If can afford, shall get a japanese. Higher class and better RV.
Economists say Malaysia economy down, employment all time high, etc until 2022…..Ada berani go buy new cars.
Gaya itu mesti even have to eat Maggi kari every day.
Grads coming out to work still need cars to go work, so how is that GAYA? It is a freaking necessity and if the price reduction can help them, all the better for our future generations.
The power is with the customer, some may take the incentive while others may not or not able too.
How would this affects the recon or second hand car dealer?
No! Why tax exempted 5-10%???
Cars Better increase the price now
be cautious..i’m afraid discounted vehicles came with discounted safety features..u know what i meant..a.w malaysia boleh
so u must be failed in maths bro lol
does this affect recond cars? sorry am a newbie
Hopefully this will help in price increase for ccb share price
Now give you chicken drumsticks, later take back the whole chicken! Dont happy so early
Please do not simply buy car for nothing just because there is a discount. Deep inside your heart u know that how “dahsyat” the depreciation is.
Why wasting those tax money?? Am sure car sellers and makers can lower lower down or promote their own products if sees fit.
How come the price will reduce as GST…
SST is charge at manufacturer level… not at last point price to user…
hence the price reduction will be less from 10% from total price… maybe around 5% only for CKD and 2.5% for CBU…
That is the beauty of SST. You don’t get the transparency of how much taxation is levied so you won’t know if the manufacturer will be reducing at 10% or not. Dang I wish GST was here now.
Buy only if really really a necessity. Otherwise avoid it, in case you lose your job.
I tot car price, petrol & toll has been reduced & abolished? How come ppl are still complaining, govt has done that right. It was in their manifesto…
can we get Langkawi car price for both ckd & cbu?