The government has announced that the current sales tax (SST) exemption for new vehicles has again been extended through to June 30, 2022.

The sales tax exemption currently in place for Malaysian consumers was first announced in June 2020, which came as part of the Penjana stimulus package to mitigate the effects of the first movement control order, which took place from March last year.

Originally scheduled to end on December 31 last year, the SST exemption was first extended to June 30, 2021, and then to December 31, 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 exemption has resulted in reduced prices for passenger cars, although pick-up trucks are not eligible as they are classified as commercial vehicles

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