The sales and service tax (SST) exemption for new car purchases, introduced in June 2020 to shore up the economy in the wake of the COVID-19 pandemic, has certainly been beneficial for car buyers. But it has truly hurt the nation’s coffers, with Bernama reporting that the government lost a whopping RM4.8 billion in revenue over the last two years.
Finance minister Tengku Datuk Seri Zafrul Abdul Aziz said the ministry is currently studying the impact of the SST rebates – the deadline of which has been extended three times and is set to end in less than two weeks – and is currently weighing its options. “The RM4.8 billion revenue forgone is a huge amount, which could have been channelled to help the people.
“We need to thoroughly study the matter. If we decide to extend for another three months, we would lose at least RM1.2 billion and if we were to extend for another six months, we would lose about RM2.5 billion,” he told the media in Labuan yesterday. Zafrul added that the government needs more revenue to provide subsidies to those in need to curb inflation.
Originally slated to end on December 31, 2020, the exemption – 100% for locally-assembled CKD models, 50% for fully-imported CBU cars – was extended at the last minute to June 30, 2021. The deadline was pushed back another six months in May; the current expiry date was announced during the tabling of Budget 2022 in October.
The ministry is under pressure from car companies to extend the rebates yet again, as the backlog of orders continue to mount. The industry is struggling to build enough cars to meet demand due to the global semiconductor shortage and parts supply issues.
And will stand to lose even more when sales drop after SST is reintroduced. Excise and Import duty is the larger chunk compared to SST.
They must study what is the expected drop in sales to properly estimate the revenue increase/loss.
It’s unfair to just use the sales figures during SST exemption as that does not reflect the true situation if SST is not exempt.
Government should continuously waive SST/GST on cars; That is nothing compare to giving away fuel subsidy 5bil per month
Without fuel subsidy but another SST exempt, but traffic jam is queuing more. This is still pointless
That’s best of solution is: End of SST exemption
People nowadays keep thinking the sst exempt cause congestion. C’mon la… don’t so childish. More cars doesn’t necessarily cause more congestion. It’s because everyone locked during MCO. Now people are “revenge consumption”
Your imagination gets more and more exciting each day… I wonder how do you cope with it.. I believe your imagination runs so wild that you can no longer differentiate reality and what’s not… it goes on auto pilot and you just live in great despair …
Have you own one single car before?
SST exemption is just marketing gimmick
Asking to extend for SST exemption but government have loses money and creating more traffic jams. This won’t be good at all
That’s right! People must know why traffic jam is becoming abnormal with SST exempt than the normal traffic jam without SST exempt
+1
Is traffic jams solution are more important than selling cars or selling cars are more important than traffic jams
Same question for those who wants sst exemption, is sst exemption is also more important than essential items and today consequences like traffic congestion? This question is quite weird
if without the sst exemption during the past 2 years, government will lose event more base on the purchase rate… did he know how to count? how come this kind of moron became our MOF minister?
With extend for SST exemption, government have loses money and creating more traffic jams. This won’t be good at all
Don’t see another need for extension.
Yes, SST exemption is just marketing gimmick
Trims kaseh Bapa Keluarga Malaysia! #BetterNation
With creating more traffic jam? Called that as better nation? Would suggest to put get rid SST exemption. Then can only called BetterNation. Betulkan?
With SST exemption, our country will turning to worst and slowly become bankrupt country
And that is what they studied and found la…
Your preconceived idea that only laymen can operate the government needs to be thrown out of the window. If not you’ll never learn anything .
Majority malaysians are already here to against you. People are already fed up such heavy traffic jam and want to demand more on tax holiday again, Sigh….
Concentrate on climate crisis first.
So by creating more traffic jams? Already too much traffic jam, why you need for?
Shouldn’t be say together:
SST exemption together with excise and import duty are large chunk than SST and etc. With SST exemption, the government will lose more revenue.
They must study revenue between exemption and without exemption
It’s unfair to simply continue SST exemption as won’t reflect the true situation that will loses more revenue and turning into bankrupt country if SST exemption continue.
Not even close to the money the politicians have swindled ……
Yup like Rm35 billion debt by 1Mdb.
Lost? 2years 5billion jer
Subsidy 1month 5billion U say OK?
“…which could have been channelled to help the people.”
I doubt that would’ve happened.
No need to extend the exemption. Upgrade & repair public transportation quickly. Slowly stopping the selling of ICE cars now and last should be by 2027. Ask manufactures to promote more EV cars from now with pricing under RM100K. Everyone can buy affordable & reasonable EV cars in future. Come on government be aggressive in implementation.
Thus gomen wants more money so the leaders gets more to share among themselves. Helping the country and people only if their is balance after all this is done.
Your imagination gets more and more exciting each day… I wonder how do you cope with it.. I believe your imagination runs so wild that you can no longer differentiate reality and what’s not… it goes on auto pilot and you just live in great despair …
it’s only 2 weeks before end of june…what ever that needs to be studied should be have been done earlier before the annoucnemnt to not extend this rebate. so why are we back on the same loop again… decided d, then just go forward. else how the country move forward?
Dong Gor
Tengku Z spewing dragon hell flames to menakutkan rakyat.
It is like watching a horror movie week after week with him and Assmin maverick lambasting the rakyat.
Come July 1…these dudes might U turn,after huge backlash to vote them out.
Bolehland can never move forward because of “kostann” or reverse gear politics.
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Yes, people who could afford a car should pay the SST. And please remove RON 95 subsidy too. People who can afford a car is rich enough to pay for their petrol without subsidy. No more bulk subsidy needed.
Lol what is RM4.8bil compared to the USD4.5bil lost.
Malu apa bossku??
Your imagination gets more and more exciting each day… I wonder how do you cope with it.. I believe your imagination runs so wild that you can no longer differentiate reality and what’s not… it goes on auto pilot and you just live in great despair …
RM4.8 billion should have used for other things, sst exempting for cars
RM4.8 billion should have used for other things, not sst exempting for cars
Additional 2.5B is nothing if compare to fuel subsidy of 28B for 2022. The cheap fuel is one of the main culprit for traffic jam, not more car registered. Whether I have one car or three cars, I still drive one car at a time.
What are the car companies are thinking about? No matter what you are pressuring to Finance Minister, this is already pointless and people already complaining that their new car still can’t be delivered, even if tax exemption will extend till this year.
I against SST exemption
Small amount compared to what they leaked every year awarding contracts to incompetent contractors.
No need to buy new car, stay with existing car as long as is good condition
Easy, No need to extend. Sick of traffic jams. No need to think too much
Only 2.5b….
This BN Pas govt had sold so many national assets. And now lost multi Billions of national revenue …really dumb to their ass. Sighh..
Your imagination gets more and more exciting each day… I wonder how do you cope with it.. I believe your imagination runs so wild that you can no longer differentiate reality and what’s not… it goes on auto pilot and you just live in great despair …
Lose is not the right word. It’s a tax. It means they take less than what hardworking people earn.
Just vote this MOF guy out next election
No need extend. People will keep buying. Backblock order also a lot.
I support SST to come back for motor vehicles! Still better than GST.
No need extend la!!! Traffic jams solution are more important
Just extend it .. economy will prosper.
Can stop sst exemption already please
The gomen lost much much more by allowing proton and perodua tax exemption against other motor vehicles.
And drop in sales if tax exemption is implemented will be even higher revenue loss to gomen.
Half Year later….
Gov’t lost RM4.8bil revenue through stopped SST exemption, will gain RM2.5 billion more if another extension
It is non-national brands too also affected by tax exemption
The other way round. The gomen lost much more by allowing foreign motor vehicles tax exemption. Should give tax exemption only for local vehicles not foreign motor vehicles
Don’t see another need for extension
If we want to vote for you, government should make wise move, if you want to solve essential items and today consequences that it’s traffic jam
Hmmmmmmm………………lost is the suitable word?
Do rakyat a service for once.
If Gov make Ops Cermin Gelap, in next 6 months can get back 2.5b revenue by summoning so many vehicles with dark tinted film
Got extend, extend. No extend, then no extend. Simple, why bother tell us this bullshits. 4.8bil loss. So you’re saying all these while Malaysia earn multi-billion by imposing SST on cars? C’mon la, then all the money must be in the government’s individual pocket instead of the country.
Should give tax exemption only for local vehicles but increase the tax foreign vehicles then the value of ringgit goes up against foreign currency and gomen can earn more revenue
Ever since you already lost more revenue money, in the first place, you shouldn’t exempt for cars while help more on people who are need to survive or suffering and also for proper education. I would suggest that if you stop exempting for cars, would be better move and rakyat would be more happy. Jams already too much and people are getting angry
yeah… govt are not clever enough.
orang kaya makin dapat saving beli kereta ratusan ribu sampai jutaan ringgit..
deii MoF.. limitlah harga yg entitle SST.. 150K below
We have more than enough cars otr. Stop the exemption now, stop selling more cars and stop climate crisis
Better prioritize for houses and property, not this SST waiver for cars again!
SST exemption is marketing gimmick by creating more jams, lol!
Government lose money to rakyat is a problem?
Good to realized that already lost revenue for tax exemption or else would be inside politicians pocket
Anyone who knows the laws of supply & demand will know that the Government will not gain RM4.8b if the SST exemption was not given. Vehicles sales will be lowered than the SST-free figures when prices are higher.
This only show our ministers including the finance ministers are not smart enough to be a ministers.
The finance minister should be looking at for examples cutting bloated salaries and perks for most government officers instead of sensationalize lost revenue from vehicle sales.
You don’t know about how government revenue is all about. Exemption but without tax is where will lose government revenue and without exemption but come with tax, is where won’t lose government revenue
I hope government does not extend SST exemptions. Government are not rich and traffic jams are everywhere
Govt lose more with sst extension. Wow now its turtle brain to steal as GE is looming. Good. Increment up RM300 after so years but cost goes 70%. Nice