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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what about passenger vehicles which includes SUVs and MPVs but registered as commercial vehicles with JPJ?
will they get the sales tax incentive also?
What is the classification of passenger car set by your ruler?
Sedan?
Hatchback?
Coupe?
Station wagon?
Minivan?
Crossover?
Is time to implement GST tax to boost economy.
Cakap SST cut, later Pick up not applicable… later what???
SST is cut on passenger vehicles for private usage. If you do business, you can very well pay the SST. Besides, most businesses register car as company asset, so please don’t shirk your responsibility and pay your taxes.
From above: “Pick-up trucks, however, already enjoy some excise duty relief.”
Pickups have been enjoying bantuan for a long time so now it is private car owners to enjoy some of the bantuan. Why truck owners want to iri hati on car buyers when you have enjoyed for so long? You too can still buy MPV or SUV and enjoy the same benefits.
some people buy pickup for private use. how can gov put a general blanket that it’s surely commercial?
There’s a difference between private/company registration and passenger/commercial vehicle classifications. You can do private registration for your pick-up truck, but it will still be classified as a commercial vehicle.
government should go by type of registration rather than the type of vehicle. nobody wants to pay more tax.
Commercial vehicles are pretty much exempted from excise and import duties anyway, so I think this fair.
What about MB S-Class Hybrid or BMW 7 series Hybrid. Those are excise duty free and now gonna enjoy sales tax exemption.
Hybrid CKD no longer enjoy excise duty free anymore no thanks to PH made NAP2020. Even Honda City hybrid price went up by RM 8-9,000 now.
for years pickup didnt pay excise tax like other passenger cars lagi mau bising? Pay no tax but act as king (samseng) on road, the only tax being paid is small amount of sales tax/sst. that one also don’t want to pay?
totally agreed on the ‘samseng’ mentality of pickup driver ^^
Our Honda salesman here is jealous his Honda can’t benefit from this action because Honda don’t have a pickup truck in this part of the world. Kesian….
SST exemption is a government initiative to increase AUTO SALES thus choice of vehicle should be immaterial.
Increase autosales for the right kind of people that needs help. Business owners that could afford to pay cash when buying already cheap pickups don’t need such assistance.
Abang abang offroader sure hempeh habiz….
For Sabah and Sarawak. Pick up truck is a necessities as numbers of village still doesn’t have a proper access road. The only vehicle that can drive to the village is vehicle that equip with 4×4 (most of the pick is equipped). To conclude, pick up truck should eligible for tax exemption.
Weird, Audi, BMW, Honda much more expensive than pick-up, but they got tax exemption….for those who dont know why most sarawakian sabahan buy 4wd pick up truck, hope you can use your own car and drive in “sarawak sabah highway”, sure you will more than just happy dude!