SST exemption: MAA asking for extension due to order backlog from chip shortage, but unsure if will happen

SST exemption: MAA asking for extension due to order backlog from chip shortage, but unsure if will happen

The Malaysian Automotive Association (MAA) held a question-and-answer session after its annual general meeting today. One of the questions raised by members of the media was whether the government was considering extending the sales and service tax (SST) exemption, which is scheduled to end on June 30.

President Datuk Aishah Ahmad said that the organisation is in the midst of drafting an appeal letter to request for the extension from the ministry of finance, which will be sent after the AGM. “We have not submitted but we will soon,” she said. “The outcome, we do not know yet. We would like it to be extended but we really do not know whether the government will accept it or not. It really is up to the government.”

Aishah added that the ongoing global semiconductor shortage has hampered the car companies’ ability to fulfil the backlog of orders, necessitating the extension. “We will give our reasons for requesting for the extension, [which is] the microchip problems and all that. A lot of our members still cannot supply in terms of the orders they have received because of this microchip problem.”

SST exemption: MAA asking for extension due to order backlog from chip shortage, but unsure if will happen

The SST exemption has been extended three times since then-prime minister Tan Sri Muhyiddin Yassin announced it way back on June 5, 2020. Originally slated to end on December 31 that year, the deadline was then pushed back at the last moment to June 30, 2021. Another six-month extension was given in May, followed by a third one that was confirmed during the tabling of Budget 2022 in October.

Having gone through so many extensions, it’s unlikely the government will continue with the exemption, which is 100% for locally-assembled CKD models and 50% for full CBU imports. As such, if you’ve been on the fence on purchasing a new car, you should probably get it now (registrations must be completed by July 31 to be eligible) instead of waiting for yet another lifeline.

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • Dong Gor on Mar 25, 2022 at 4:58 pm

    The paper quoted the ministry saying no to extension..and they are serious this time. ” there is 4 more months left for SST exemption…” anyway, this is Malaysia anything can be said and unsaid. done and uturned.

    Like or Dislike: Thumb up 4 Thumb down 9
  • bieight8 on Mar 25, 2022 at 5:06 pm

    Should extend it to year 2099…

    Like or Dislike: Thumb up 0 Thumb down 3
    • Zelensky Blinken on Mar 26, 2022 at 4:11 pm

      Petrol at RM3.70/litre,No more SST exemption,but GST coming..Keluarga Bolehland kaput,court cluster, regime change coming..get ready..we may be worst off than Ukraine alto we r not at war.

      Like or Dislike: Thumb up 2 Thumb down 4
      • History Bender on Mar 28, 2022 at 12:57 pm

        Same tool that shouted the economy will fall fr the last 60 years. Such displacement from reality.

        Like or Dislike: Thumb up 2 Thumb down 1
  • No need extension coz according to haters, all other brands are doing well except Proton so if they are not facing parts shortages as their fanboys claimed, no point to extend SST exemption mah!

    Like or Dislike: Thumb up 15 Thumb down 0
  • 7yearsfd1 on Mar 25, 2022 at 8:08 pm

    If can get those who booked/passed loan can already. Many many backlog upto half year waiting. Duit ada kereta tiada.

    Like or Dislike: Thumb up 2 Thumb down 1
  • Capital F on Mar 26, 2022 at 8:08 am

    That is your selfish problem. Think about this: foreign brands will send back their profit to their HQ. Don’t you think our government need to fill-up their coffer too? Where will the money/tax go? To the people.

    Like or Dislike: Thumb up 8 Thumb down 3
  • The Saint on Mar 28, 2022 at 3:52 pm

    “As such, if you’ve been on the fence on purchasing a new car, you should probably get it now (registrations must be completed by July 31 to be eligible) instead of waiting for yet another lifeline.”

    Assuming there is no extension of the SST exemption, the car must be registered by June/30,2022 or July 31, 2022 to enjoy the SST exemption?

    Like or Dislike: Thumb up 0 Thumb down 0
  • compassion on Apr 05, 2022 at 4:24 pm

    Don’t think should ask for extension again. This is because the most important is that service is the most top priority instead of keep selling cars. The more they sell cars more but the service will slowly decline.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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