Government extends SST exemption period to June 30, 2021 – 100% on new CKD cars, 50% for CBU

Government extends SST exemption period to June 30, 2021 – 100% on new CKD cars, 50% for CBU

In a new twist, the government has now announced via a memo issued to the Malaysian Automotive Association (MAA) and Malaysian Association of Malay Vehicle Importers and Traders (PEKEMA) that there will be an extension to the new vehicle sales tax exemption period to June 30, 2021. We’ve since checked with MAA, who confirmed the matter.

The sales tax exemption, which has been in place since June 15, was originally scheduled to come to an end on December 31 this year. According to the memo, the percentage of sales tax exemption remains unchanged from what was announced before, with 100% for locally-assembled (CKD) cars and 50% for fully-imported (CBU) cars.

Not too long ago, the Malaysian Automotive Association (MAA) revealed that a request to extend the sales tax exemption period was denied, but it looks like the government has had a change of heart.

The new vehicle sales tax exemption is part of the government’s Penjana programme in order to spur demand within the local automotive market. The sales tax exemption has resulted in reduced prices for passenger cars, although pick-up trucks are not eligible as they are classified as commercial vehicles.

Another change of direction that we recently reported on relates to the government’s decision not to change the excise duty regulations for CKD cars, which would have resulted in the prices of CKD cars going up, if put into action. With both announcements, it looks like car buyers have more of an initiative to make their purchase, so will you?

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Aiman on Dec 29, 2020 at 5:22 pm

    To wait for Perodua Rocky Turbo D55L?

    YAY (Like) and NAY (Dislike).

    Like or Dislike: Thumb up 30 Thumb down 28
  • (Dude) on Dec 29, 2020 at 5:39 pm

    All those 20k Proton X50 buyers are lucky to have their cars with SST Exemption now.

    Like or Dislike: Thumb up 27 Thumb down 1
    • Jeremy on Dec 29, 2020 at 8:49 pm

      Is the best time to buy new car with 100% bank loan. Today collect new car, Tomorrow claim loan moratorium. So no problem

      Like or Dislike: Thumb up 22 Thumb down 8
  • Dong gor on Dec 29, 2020 at 5:42 pm

    I guess they saw what we posted and have learned that this is the best move! All in all, the u turn attitude is just in their dna

    Like or Dislike: Thumb up 23 Thumb down 10
    • Avenger on Dec 29, 2020 at 9:31 pm

      Good u turn is good u turn. Better than bad u turns from last couple of years.

      Like or Dislike: Thumb up 32 Thumb down 10
    • Typical. Always feels the need to criticize even if it is for the better.

      Like or Dislike: Thumb up 0 Thumb down 0
  • seancorr (Member) on Dec 29, 2020 at 5:50 pm

    Not surprised, many are actually waiting for the announcement

    Like or Dislike: Thumb up 22 Thumb down 1
  • Is this news verified?

    Like or Dislike: Thumb up 2 Thumb down 4
  • Hahahaha.. flip flop gov.
    But seriously this move is for the greater good of the country’s economy. The still make a lot from excise duty which is the bigger chunk.
    So guys if you really need a new car go ahead. Otherwise buy used. Even better maintain current ride and enjoy not having a new loan to service

    Like or Dislike: Thumb up 31 Thumb down 6
  • Vanguard on Dec 29, 2020 at 6:30 pm

    hahaha…u-turn oredi.
    I wont be surprised later u-turn again.

    Tabole becoming Bole in Bolehland.

    Like or Dislike: Thumb up 11 Thumb down 12
    • Avenger on Dec 29, 2020 at 9:33 pm

      Ok what. Better than last couple of years bole become takbole. We are losing to Vietnam & Indo because of them.

      Like or Dislike: Thumb up 27 Thumb down 15
  • Josh C on Dec 29, 2020 at 6:32 pm

    Another U-turn gov…should agree earlier to extend so to help our Auto sector in 2021.

    Like or Dislike: Thumb up 4 Thumb down 7
  • Rakyat Malaysia on Dec 29, 2020 at 6:33 pm

    Tenkiu caring gomen!
    #KitaJagaKita

    Like or Dislike: Thumb up 26 Thumb down 10
  • TakNakP1 on Dec 29, 2020 at 7:33 pm

    what a caring government.

    Like or Dislike: Thumb up 17 Thumb down 8
  • Gabriel on Dec 29, 2020 at 8:08 pm

    Bravo!
    Loving this government.

    Like or Dislike: Thumb up 15 Thumb down 11
  • Now everyone can buy Vios and Yaris

    Like or Dislike: Thumb up 22 Thumb down 2
  • C.P. MOHAN on Dec 29, 2020 at 8:19 pm

    With various taxes and natural resources, we still lack “deep-pockets”

    Like or Dislike: Thumb up 4 Thumb down 0
  • Peter on Dec 29, 2020 at 9:59 pm

    from the beginning i strongly believe gov will extend sst further…

    i told ya!

    Like or Dislike: Thumb up 3 Thumb down 4
  • This is great news! I have mentioned before that I’m looking to buy a car sometime in the middle of next year, so this will surely help me to proceed in getting a new car next year.

    Like or Dislike: Thumb up 14 Thumb down 0
  • SaveMoney on Dec 30, 2020 at 1:41 am

    Better save some money in the pocket for the coming years. Unclear situation.

    Like or Dislike: Thumb up 4 Thumb down 1
  • Azgarffield on Dec 30, 2020 at 5:31 am

    Ok la gomen gives everyone opportunity for some savings. At least even Muslims can look forward and plan to have a new ride before next Eid. One thing that could not be done in 2020. Don’t have money like me, then just sit at a corner and weep quietly lor…..

    Like or Dislike: Thumb up 4 Thumb down 5
  • Beware! All new proton cars dont have anti rust undercarriage. Cars will quickly get corroded in the second year. All get holes at bottom, drive like the flinstone….china style…lol

    Like or Dislike: Thumb up 6 Thumb down 14
  • C.P. MOHAN on Dec 30, 2020 at 10:53 am

    Related to your last paragraph, excise and SST are government taxes basically it is ‘how one cuts the cake’

    Like or Dislike: Thumb up 1 Thumb down 0
  • Is there any indication that the sales tax exemption for vehicles will be extended again?

    Like or Dislike: Thumb up 1 Thumb down 0
 

Add a comment

required

required