The government has announced that there will be another extension to the new vehicle sales tax (SST) exemption period to December 31, 2021. This will be the second extension of the SST relief, which was introduced on June 15, 2020 under the Penjana programme. Originally scheduled to end on December 31 last year, it was then extended to June 30, 2021.

As before, the percentage of SST exemption remains unchanged from what was announced before, with 100% exemption for locally-assembled (CKD) cars and 50% for fully-imported (CBU) cars.

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.

With this, new car buyers won’t have to worry about running out of time to register their vehicle before the SST exemption period ends. There will be no chance to perform new car registrations in the next two weeks, as the country goes into lockdown under the tightened third movement control order (MCO 3.0) from tomorrow, June 1 to 14, but there will be plenty of time after that.

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