The current sales and service tax (SST) exemption, which is set to end on June 30, 2022, may be extended for new vehicles purchased, according to transport minister Datuk Seri Wee Ka Siong. This is to support the automotive industry that has been faced with many challenges due to the pandemic, The Star reports.
“The government is currently considering the proposal to extend the exemption, and a decision will be announced soon,” he said in a recorded statement at the Federation of Motor and Credit Companies Associations of Malaysia (FMCCAM) annual general meeting. Both the Malaysian Automotive Association (MAA) and Perodua have requested the government to extend the SST exemption in the past.
The SST exemption has been extended three times since it was first announced back on June 5, 2020. At the start, the exemption was slated to end on December 31 that year, but it was later extended to June 30, 2021, and again to December 31, 2021, and yet again during the tabling of Budget 2022 to June 30, 2022. The exemption is 100% for locally-assembled (CKD) models and 50% for fully-imported (CBU) cars – pick-up trucks are exempt as they are classified as commercial vehicles.
At the event, FMCCAM president Datuk Tony Khor also urged the government to extend the SST exemption beyond June 30. He said carmakers have had to delay vehicle deliveries due to production disruptions brought on by supply chain issues and a shortage of chips. By extending the exemption, it would lead to more potential car buyers, he said. Even so, Wee said previously that it’s up to the finance ministry to decide on an extension.
On a separate note, Khor also proposed that the road transport department (JPJ) consider the possibility of facilitating same day delivery of used cars after the loan is approved, as well as a revision of the road tax structure for older vehicles.
“FMCCAM is also proposing to JPJ to consider reducing the road tax by 75% for vehicles that are more than 15 years old, 50% for vehicles that are more than 10 years old, and 25% for vehicles that are five years old,” he said.
“We welcome initiatives that will help economic recovery, and we will look into the matter to see if the transport ministry can help facilitate this proposal. On the proposal to reduce road tax for cars that are more than 10 years old, the matter must be looked at holistically to ensure the outcome will benefit the majority,” Wee commented.
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More traffic jams coming
It is better to re-think again before re consider sst tax e exemption. Do you see how many cars on the road and pollution is everywhere. And did you know that the most important is that service is the most top priority instead of keep selling cars. With sst exemption, aftersales service is worst than selling cars.
More car sale, more revenue for the government – it’s as simple as that. They don’t care about pollution
Don’t care about pollution, please go do some research about humans affects from car pollution. Okay?? With tax, the government also benefit to contribute others
Really do not know what are you trying to say. If there are great negative impact of pollution, government just still do not care. Do you mean if pollution, governemtn will defitniely take action to correct it? How about curruption, bad economy, lazy Malaysian young generation, etc. Which problems above does government really care?
Rakyat are really more concerned on pollution and the government are doing it and reduce road congestion
Yes for:
– Reduce roadtax for older cars
No for:
– Tax holiday for new cars
Another suggestion:
– Impose new cars that didn’t follow lemon law
With or without SST,even with GST..there will be hardcore buyers of new cars.
The better way,is to restrict EASY 10 YEAR HP loans.
Now any Ah Miow,Muthu,or Ali can hit a minimum wage and opt for 10 year loans.Restrict it to 5-6 years.
Up the down payment to 20%.
The next month,you see MAA reports sales reduction,but dont forget,we are getting “QUALITY “loan applicants.
In the longer term,the loan default rate declines.A top spec X70 loan above 100grand can propel a delinquent buyer into bankruptcy and permanent blacklist.
MAA should advocate quality loan applicants,not just pushing sales.
I
But at least with SST or even with GST won’t sell more cars that will make more traffic jams than without SST/GST
Bagi exemption extension, nak komplen
Xbagi extension, lagi nak komplen
Mesian semua pun ada yang nak komplen!
But majority Malaysians about traffic jams and want to end tax holiday again.
how will SST exemption related with traffic jam?
people now driving motorbike because they cannot afford extra 5% sst for cars?
You go and find out yourself then. People already said why traffic jam is getting heavier and people knows that is because of tax holiday
traffic jam nothing to do with SST exemption.
So if you say traffic jam is nothing to do with tax holiday, will traffic jam is getting heavier. Maybe you don’t know anything much on what is going on for todays traffic jam.
So if you say traffic jam is nothing to do with tax holiday, will traffic jam is getting heavier? I doubt it and maybe because you don’t know anything much on what is going on for todays traffic jam.
Kiasi of covidwuhan and petrol subsidies caused traffic jam.
If don’t extend, T20 tarik spending pulak
Economy terjejas. M40/B40 tada kereja
Is traffic jams solution are more important than selling cars or selling cars are more important than traffic jams
Anyway, T20 always get the blames. Eventhough they all pay higher taxes than others. Wrong mentality
Then T20 should let their M4 & B40 staffs WFH or Workcation wherever they are and not simply forcing them to return back to office like Elon did when they could do the same job at home. Wrong mentality.
So lansi dont work la. Why work? Call yourself boss and enjoy like other boss la. Opps you cant because you poor no money no lengluis no big car no big hse no knowledge no strategy. So when work for others, dont complain, because others can fire you as well. Without you the company wont fall, without bosses, you will fall. M40 b40 can scold as much they want but when go to work, become yesman and very polite and complement all the way to bosses. See? Who is in charge?
Fully agree with the reducing road tax for older vehicles as this will indirectly make ppl to keep their cars longer.
“Keep their cars longer.”
How does that help anyone?
Why reduce roadtax for classic cars that easily aged 30years that sitting in garage that still worth hundreds of thousands ??
This group of people don’t need fuel subsidy despite having “OLD CAR”. So targeted must only allowing certain models and quota.
… it shouldn’t be following the car model… the entitlement should follow the person.
Rich people own Myvi too.
How to track is a different question.
don’t you feel older car should be disposed for better more reliable and safe car on road?
reducing roadtax for older car, means more and more people will keep their older car, but what’s the use of it?
Remove the road tax completely for cars more than 15 yrs. they have paid enough in the 15 yrs span and the subsequent years they spend more time the workshop and not on road :)
It is better to re-think again before re consider sst tax e exemption. Do you see how many cars on the road and pollution is everywhere. And did you know that the most important is that service is the most top priority instead of keep selling cars. With sst exemption, aftersales service is worst than selling cars.
I can agree with this line of thoughts.
Some car manufacturers should not be allowed to sell more cars until they get their act together on servicing and repair. As it is already cannot cope, sell more will only worsen the problem and unfair to previous customers.
So people who previously couldn’t afford a car and now can, you want them to go back to not being able to afford a car? More people affording cars isn’t the problem. The problem is the lack of public transport in and out of the city centre. People in Europe don’t pay as much tax as we do for new vehicles but they don’t have the traffic problems that we do because they have an efficient and reliable public transportation system. (E.g. Metro) Don’t subscribe to the “you will own nothing and be happy” motto
So if you say more people affording cars isn’t the problem, it is bad move, so why having too much of cars on the road and why many people complaining too much about can’t reach there on time, sounds like have to wake up early by go to school or college or works or back to home. Did you see air pollution is already at worst stage and now you want to make our air pollution worst. Look at how many people are there complaining. Thats why the quote below says:
#StopSSTExemptionImmediatley
Malaysian automotive industry is the third largest in Southeast Asia, and the 23rd largest in the world, with an annual production output of over 500,000 vehicles. The automotive industry contributes 4% or RM 40 billion to Malaysia’s GDP, and employs a workforce of over 700,000 throughout a nationwide ecosystem, think again.
No matter what it is, the more cars selling, traffic jams are going to get heavier. There are majority malaysians who doesn’t like heavy traffic jam. Unlike minority people wants tax holiday again.
Extend SST will create more traffic. Reduce road tax?how much it will help? Please improve public transportation and road condition.
No need to extend! It’s already enough. I always drive from home to college in morning and from college to home in evening everyday. By right I should reach there my own actual time but always having more jams that I have to reach at delaying time instead. Think for others including myself
it’s already middle of June… if indeed they extend again so last minute (aka uturn from what they told the ppl a few months ago, that it won’t be extended), this government is BS. can’t go as planned as behind the counter, or under the table something is happening! PNB
Gov preferred sell more car can get more income , traffic jam is normal in our life ,unless you stay at home or live at less develop state …etc.
Traffic jam used to be normal that is when without SST exempt but getting worsen and is abnormal with sst exempt. Soon highways in more states will be filing more traffic jams
its funny, for those of you already enjoyed the tax holiday. and have owned a vehicle now you want the rest cannot have it. what a selfish bastard of you all. please listen to yourself.
Whether you own or not, doesn’t matter! People don’t mind to pay a car with tax. Those who complain here, must have not been realized why there are more jams there
Which college you go to? Written English quite poor.
I will make sure not to send my kids there…
Bike is much better than driving cars. Riding/driving cars will be stuck at traffic jams, bikes should be much better and not waiting at traffic jams and lesser time to travel to office and back to home.
Yes to reduce road tax for older cars but no to tax holiday again
Shouldn’t it be the other way around the older the car higher road tax
i think its a wrong move
they should roadtax increase for older car, try to eliminate older cars on road, less problematic and less safety car must go!
There you go…owning old big liter luxury cars will be more affordable now…GT-R, Ferrari, and not so luxury Mustang
Those ppl who said the tax holiday to revoke may have gotten their new car, Those who are less fortunate with me waiting for the car new car during this promo tax holiday would be totally agreed to extend this tax holiday. please be considerate to us who are still waiting our new car. Almost 4months waiting period still havent got the news for our car status from manufacturer.
Who cares? Majority malaysians are already fed up such heavy traffic jam and demanding more on tax holiday again. Very good but majority will not read your comment
Really Disagree with you, don’t act like you represent the majority of the Malaysian. tax exemption was helping the economy and Malaysian getting their vehicle with cheaper price. traffic is another topic. stop tax exemption wont change the traffic issue. please Wake up and blame for nothing!!
Tax exemption will make more long jams. One of biggest disadvantage. Even without tax exemption, people won’t mind to pay a car with tax. So you want to make traffic jam to make more longer with tax exemption, Come on man, please think about people thoughts here. Time to realized how many cars are there on the road and how long do you have to queue up with such long jams. It is matter whether people already owned or not, at least people have realized why traffic jam is getting longer than pre covid
disagree, tax exemption can help more malaysian to own their vehicle. traffic jam issue even before covid already exist, don’t simple blame it on tax. in the past 2 years do you see any enhancement on the road is ongoing? its MOT problem not well organizes. with or without tax also will jam.
All the time, there are traffic jams but during pre covid still not as bad than post covid. Even that time during pre covid, I seriously don’t hear any from my friends complaining about such a long traffic jams. Besides, I have been driving for years and I know what are the difference between pre covid and post covid based on traffic jams. During pre covid days, it wasn’t really that many cars, even almost reaching to the roundabout but when comes to post covid, there are too many cars on the road that make traffic jams more longer. Can see filing up more cars near the roundabout, more cars lining up near to toll plaza and whatever it is happening during right now
That’s why tax exemption thats when post covid which is now, is the biggest disadvantages to make traffic jams even longer. Even many grown children are on hold for buying new cars but driving old cars first, like back during pre covid days. Even, I hear from any of my friends saying that their sons/daughters are also driving old cars instead of buying new cars.
Do you listen do what you said? younger generation even not buying new car they still used old car, why you blame it on tax exemption. its totally not the point to blame with. from your point of view is like rapist blame the lady wearing sexy cloth. its not the rapist problem is the victim lady seduce the rapist. what a joke.
@abdullah
I didn’t even mentioned used old cars. But sorry, you need to understand a bit more, cause I forgot really mentioned that those younger generation drive old cars but driving their parents car but not buying used cars or new cars. And I did not mentioned about problems on what you said. This topic is about issues on sst exemption extension.
yes, some ppl having this attitude said they don’t mind paying car sst bla2.. and mostly blamed just because this SST holiday making the road are more jammed. traffic is another issue , let the government action eg: to improve our public transport thus despite of buying new car ppl can rely into another alternative. addidtional note , our manufacturer also having difficulties especially on chip and parts. please be considerate to other who are grabbing this Tax Exemption to afford buying 1st car.
this is typical human problem. everyone also just take the benefit to itself. not taking consideration of the majority. always assume he is the “majority”.
But it is gonna make traffic jams more longer with sst exemption again. Do you want to make people to reach their home later than their own preference expected with less enjoyment by eating dinner with kids and less time for relaxing at home? Come on man and please think about people thoughts. People already complaining about traffic jams is already too long.
so, you saying the right way is for those who are riding bike or not owned a car. please continue ride your bike, please don buy new car and jam the existing car owned. its already traffic jam. please, all other ppl take bus, take grab, take mrt, take bicycle but don’t buy new car. the rest of your and making the traffic jam. except “majority” of you all. funny…..
I agree with runway, at least you think about others on concern of congestions. Even many are also complaining about congestions in social media everywhere. It is time to slow down on road congestion. Don’t ask SST holiday again. Tax must come back. Can take some more time to improve road conditions i.e. expanding more lanes
Unlucky buyer, with SST holiday, what choices you have right now, price might jack up because of chip shortage and components
Yo guys, for those who wants sst exemption, did you know that gomen has lost RM4.8 billion revenue where tax holiday have already extended for three times, if asking for another time, for three months later, the gomen would lost RM1.2 billion revenue and for six months later, the gomen would lost RM2.5 billion revenue more.
selfish got the point. if you guys feels traffic is jam. why don’t “majority” of you start stop to use car? why need others “Minority” not to enjoy the tax? stop extending not the best way to improve the traffic right? its need both MOT and the rest of you co-operate. take public transport, carpool etc.. why just blame it on tax?
dont overlook on the sst tax lost, sst tax exemption was not the only tax gain by government, there still have other tax on car sale neither CKD or CBU. government are not losing any tax gain. in fact more purchase will have more tax gain. stop extending, will result in low purchase… its lead to lost more money.
Do you need SST exemption again? Government has lose more billions revenue because of sst exemption. You guys are not so important on essential items as those prices have already jack up and don’t know what is going on today consequences including traffic congestion.
those cry about pollution and traffic jam, why don’t you guys stop drive your own car and contribute to the reduction of the traffic matter? my 16years old car was totally broken and i am forced to buy a new car. tax exemption helps me save few thousands. If you really care about pollution, stop using aircond, stop driving, and go for meat free diet. Don’t talk like very noble but hiding behind computer there you are the one that contribute more to pollution.
Those who cry about SST exemption, you all have to grow up a bit and please think of how to resolve by reducing traffic jams instead of asking SST exemption. SST exemption is marketing gimmick by creating more traffic jams, is it? You can still buy new car with tax, so why are you so worried about. Government needs money now to help for poor people who needs for necessary products. Climate needs for change to be better. Don’t talk as if you pretend not to know anything but straight away jump by asking SST exemption.
Traffic jams are everywhere….should be another way round and the quote said below:
#StopSSTExemptionImmediately
just set it as it is, no need keep extending it.
Road tax should be increased rather than decreased for old cars, the need to have more highway support when they breakdown, the need to maintain an obsolete supply chain creating high emissions, the likelihood that they will be involved in accidents as they are less apt in dealing with modern road and weather conditions. All these are factor to be considered.
I see those who have cars, are asking to stop the extension.
Those looking to buy cars, asking to extend.
Everyone is selfish here, can’t please them all.
Hence the only right move has to be the best financial sense.
Called that selfish to them. Did you see how many malaysians are fed up all sorts of demanding traffic jams? Majority! And how many malaysians asking for extend tax holiday again? Getting from majority to minority. Think about malaysians thoughts here
Obviously the complains are coming from those who already have cars will be the majority. Those who don’t own cars have no reason to complain yet until they buy one.
Whether you own or not, doesn’t matter! People don’t mind to pay a car with tax. Those who complain here, must have not been realized why there are more jams there
Good for me. I ordered a Porsche Taycann and it is not contributing to the pollution. Hope government extend it since the Taycann delivery will be on the 3rd week of June.
Don’t worry, you will still get and won’t caught by sst tax.
Why keep extend here and there and keep U-turning? Use your brain, Dr. Wee, how does that reflect on the government? A bit of complaints from MAA already want to provide tongkat. Seriously?
That’s MAA problem. MAA can’t even bother to see unhappy majority Malaysians here based on heavy traffic jams.
For those who ask tax holiday again, think about it, how many cars already fill up more on the road? And did you see majority Malaysians are fed up of having traffic jams. Yet, selfish people demanding for tax holiday again, if tax holiday extend again, trust me, it is gonna fill up more traffic jams
Please don’t extend SST exemption date. Once it started people will demand for more and the car short supply won’t be solved in near future due to global shortage of chip and also ocean freight take longer deliver time of parts. Post covid the traffic flow is more horrible than 2019 and if tax exemption keep extending it is encouraging citizens to drive rather than taking public transport.
Look at the cars on the left and right while stuck in jam at 730am and 6pm, 90% of vehicle is only carrying 1 person which is driver himself. Money spent on car is far more than taking public transport. Hope when the MRT 2 open up will encourage more people taking train rather than driving. It is not worth to spend too much on cars as the money can spend on other more important stuffs.
Extension again?? Please don’t. With tax, it used to be okay, feel like traffic is normal but with tax exemption, timing to reach destination feels me very painful and headache and take one hour to drive to my house, not like 30 mins.
But I do really agree with reduce roadtax for older cars since some people can’t afford to buy new cars but this will make able for people to decide to buy new cars later
No matter what you ask for extension, still no point if delivery of a vehicle take a long time
Government should study a win-win situation for the benefitial of Malaysian automotive market.
1) Reduce tax for local assembly cars
2) Reduce tax for small CC cars (local)
3) Reduce tax for hybird car (local Assembly)
4)Higher tax for foreign direct import car (used or new car)
5)Higher tax for big CC cars
6)Higher tax for company registered car
By still creating traffic jam more, is it? Don’t need anymore for reducing tax for local assembly cars and small CC cars! So sorry that, many people already now talking on how to reduce traffic jams and I also concern about traffic jams.
Remove petrol subsidies will reduce traffic jam.