2020 SST exemption: Pick-up trucks not eligible for sales tax cuts, being classified as commercial vehicles

Last Friday, the government announced its Penjana short-term economic recovery plan, which will introduce a host of stimulus measures to aid the economy following the Covid-19 outbreak. These include an initiative for the automotive sector, in which there will be a 100% sales tax (SST) exemption on locally-assembled (CKD) models and 50% on fully-imported (CBU) models from June 15 until December 31, 2020.

Car companies are in the midst of preparing revised price lists, with Perodua being the first to reveal its new SST exempted prices. However, don’t expect to see cheaper pick-ups in any of the new price lists that will be coming out in the coming days.

In our overview on the sales tax exemption last week, we had placed in equations that involved pick-up trucks, but as it turns out, they are moot, because relief measures from the initiative will not have any bearing on their prices over the sales tax exemption period.

According to the Malaysian Automotive Association (MAA), pick-up trucks will not enjoy any sales tax exemption, because they are classified as commercial vehicles – as it turns out, the incentive is only for passenger vehicles, which includes SUVs and MPVs in the make-up.

A check with Sime Darby AutoConnexion and Mitsubishi Motors Malaysia has confirmed this, and so the Ford Ranger and Mitsubishi Triton, along with the likes of the Toyota Hilux, Nissan Navara and Isuzu D-Max, will continue to be priced as they are currently, with SST in place. Pick-up trucks, however, already enjoy some excise duty relief.

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