It’s confirmed – the SST exemption for passenger cars in Malaysia will end as scheduled on June 30, 2022. However, the silver lining is that the government has taken into consideration the severe stock issues currently faced by the automotive industry and has allowed the SST exemption to apply for any car booked before the deadline as long as it is registered before 31 March 2023.
UPDATE: We have reached out to some dealers and principals to ask what constitutes a booking, and have added the definition in the story, below.
Thanks to the combined after effects of the pandemic, war and chip shortages, there are many cars with waiting lists of a few months in Malaysia. This will mean someone who booked a car way back in January this year but has yet to receive delivery of the car will still be able to enjoy SST exemption as long as the stock arrives and is registered before the March 31, 2023 deadline. According to MOF, there are currently a total of 264,000 undelivered bookings so far – that’s a lot!
For cars launched from July 2022 onwards though, no luck! Do pre-launch bookings qualify as long as it is before the June 30, 2022 deadline? What exactly defines a booking that qualifies for the exemption? We managed to find out what constitutes a “booking” in the eyes of car companies – while this is not exhaustive, it should be representative of how things work for the most.
For Perodua, a booking refers to a RM100 deposit and details from a copy of your myKad. The dealer we reached out to said that, based on the wording of the press release, as long as the name is in the Perodua system by June 30, the buyer is entitled to the exemption.
For Honda, the company’s definition of a booking is a deposit not more than 1% of the vehicle price, and that it needs to be entered into the system before it is considered as such. There is no long lead time for this, which means if a buyer comes in to book a vehicle the booking can be entered into the system at that point.
There’s a lot more that needs to be asked, and answered with regards to the entire process, and we understand that car companies are in the midst of requesting further clarity on the matter with the ministry. We will update on this when details become known.
The SST exemption was first announced in June 5, 2020 as part of the Penjana stimulus package to mitigate the effects of the first movement control order, which took place from March that year. Originally scheduled to end on December 31 that year, the SST exemption was extended at the last moment to June 30, 2021, and then again to December 31, 2021. A third extension, which is the current one, was announced during the tabling of Budget 2022.
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“This will mean someone who booked a car in January but have yet to receive delivery of the car will still be able to enjoy SST exemption as long as the stock arrives and is registered before the 31 March 2023 deadline.”
How sure are you of the above statement?
You pay SST at the same time as you pay Excise Duty, which is after the vehicle is produced. If the vehicle is produced after 30th June, it will be subjected to SST.
When you booked the car does not matter.
Okay, you go tell Tengku Zafrul lah, he is the one who said so in his letter from MOF.
No more SST exemption to cars and less allocation to opposition states but BN ministers salaries still continue to grow with no cut in pay. What kind of country is this?
Government already lose their revenue because already spent for sst exemption
What about the federal revenues collected from states like Johor and Sabah? I’m sure they collected more from those states than they spent giving out. Lost of revenue is just an excuse. The Sultan knows best. Ministers did not lose their revenue though…
SST exemption is just marketing gimmick.
And what about sst exemption too
SST exemptions can cause traffic jams?
Deswai the Sultan called the Fed Gov out. Every year almost RM 13 billion of federal revenue is collected from Johor and the Gov still says no money? Mana logic? Our Sultan is smart you know? Not easy to tipu like how they tipu the Rakyat.
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@AutoFrenz (the original)
Disagree
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Please cry whatever you want for those who ask tax holiday but people have already spoke their truth by not getting jams heavier
@Agree with you
What truth? Where? Where? Majority malaysians have complained about traffic jams, not tax holiday! Lol!
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To all sst exemption supporters, have you buy first car? If you don’t, please don’t talk
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@Policeman
But are you talking now about bike or cars? People have follow traffic jams rules. Tax holiday is causes of traffic jams and excuses tool!
Really? Tax holiday is the cause of traffic jams? Then why did he gave it in the first place? You mean our MOF created the traffic jams? o.0
@Betol Tak?
MOF have realized his mistakes and should have use wisely for essential and that’s why traffic jams makes longer that makes sst exemption big disadvantages and public already get angry
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BN memang kerajaan bodoh…. i tot they were good but nope not anymore…. nothing is clear haih…. hidup najib…. i dont care if he is convicted, bring him back….
You want no tax, go ahead but gov will lose more money.
1. Agree that Najib is best
2. Don’t agree with you because you have to appreciate what now government is doing now.
Agree. Najib is best but even better when he is convicted criminal. You know, he can do whatever he wants since you guys love to support him and this useless Gov.
Useless government…no
Yes, useful as in… pissing the Sultan.
Funny how many PH goons were antiroyalists during Selangor MB fiasco. Looks like they choose when to use the Raja Rajas either as megaphones or punching bags. Enough hiding behind their backs. The Raja Rajas have said no politicking until GE15, so are you disobeying them?
Looks like BN scums are fully pissed on this article as they are pissed by the Raja Rajas. Now even resorting to fake likes and fake raja title. You think you are a Raja? Ketuanan tidak diutamakan kah?
I may not like Tengku Z,buy what has transpired now,saved thousands of covid hit buyers thousands of RM.
Lets give him the benefit of the doubt,that it is done out of benevolence,and not just to score political points.
Wah..like that..Tengku Z gonna book his personal Rolls Royce on June 30.
That guy was a career banker. He can easily afford it even without SST exemption.
The guy is a genius. He knows how to squeeze every penny out of the rakyat unlike Najib.
Hopefully,later Tengku Z will not backtrack and lament,we lost so many Billions Rm,and give sob story again.
Dear Paul, why are you so defensive? The guy is asking a legitimate question. It’s not a good look when the owner of the website ‘scolds’ a visitor who is just asking a question. How would you feel if you walked into a shop and the owner scolds you when you ask a question? It’s the same thing.
And as a person who is suppose to be a automotive journalist, isn’t it your job to ask questions?
text cannot convey tone, nobody is scolding anyone.
i was pointing out that the answer is literally there in the press release.
Agree. In Malaysia, it all depends on the “lah” tone. As we know, there are many tones of LAH, at least 4, as in HAN YU PING YING.
@Tan
Add on. Somehow those crying sst exemption here are just lacking of their experience who don’t really understand what majority people are saying when traffic jam is already heavier and rejecting tax holiday
Those people who are defending here are trying to continue tax holiday but never understand why traffic jams are getting heavier and majority said have rejected tax holiday again.
Majority is using kapchai like the 312 motorcyclists held recently. Why complain about traffic jams when majority don’t follow the rules?
@Policeman
Wake up, you don’t understand what he is saying, he didn’t say about kapcai, he was saying about majority people here including with or without owning cars? People who owned cars or bike have follow their traffic jam rules. Tax holiday is just excuses tool!
Then we have to thank Tengku Zafrul lah for the tax holidays that created the traffic jams. No?
Another example of announcing without thinking. After .. “duh.. kenapa ko tak bagi tahu awal2″…with his officers, then U-turn lor.
“Pengeculian” Mr Sotong. Of course MOF will track this and give exemption on the SST accordingly, following the deadline given (until 31 Mar 2023)..
Buy used or refurbish the existing cars…why must buy new?
Ryan T
I fully concur with you.
The problem with Bolehland buyers,is the insatiable appetite to “Beli Je,jangan risau,10 tahun loan guarantee boleh dapat.
Some used car dealers are selling 2-3 years old cars,still in impeccable condition.
One dealer lately advertised ‘Sonata 2021 15,000km genuine mileage at Rm149000 only.
It shows the buyer has not properly test driven the car,regreted,n off loaded to the smiling dealer.
Research shows the euphoria of excitement, smelling the new car interior dies after 3-6 months,so after that only the car distributors and MAA are happy.
Gov needs money der. Because want to bail out Sepura.
This the last swan song for BN UMNO govt. b4 dying for gud…
This is pas-bersatu-bn govt!
start booking at every dealership and then flip the car early next year…good business. on a serious note,the announcement today should be not sst extension. period.
on June 30, announce those that booked still can enjoy sst if registred by march 2023. macam ni baru cantik ma. fair to everyone and no hanky panky for next 10 days
If it really is based on booking date, there will be hanky panky until March next year. How on earth do you verify when the booking was made? Dates can be altered. It’s not like all bookings go thru Kastam or MOF.
flip? when was the last time you actually make some money out of flipping 6 figure cars?
Book before June30, 2022,
Meaning loan approval also obtained?
as long as it is registered before 31 March 2023, nice.
Same things should apply to 10/15 years scrap.
Ppl should be given time, at least 10 years ahead for existing aged Car.
Finally, we might reach 10/15 years scrap by 2035/2040.
Then we might achieve the Carbon-Neutral by 2050.
https://paultan.org/2021/09/28/rmk-12-malaysia-to-be-carbon-neutral-by-2050-cleaner-electricity-to-replace-coal-fired-power-plants/
https://paultan.org/2020/01/07/toyota-mahu-bangunkan-prototaip-bandar-masa-depan/
Toyota’s woven city presented a Carbon Neutral model.
https://paultan.org/2021/09/28/carbon-is-our-enemy-not-ice-akio-toyoda-urges-japan-to-not-follow-europes-ev-model-blindly/
ICE is not enemy, but carbon emissions.
1. Safe car doesn’t need to be scrapped – with maintenance policy.
2. High carbon emissions car, like Paris Agreement? Carbon Taxing3/Carbon Credit.
3. Subsidize to OKU/Retired/Single Parent/Critically ill person
Otherwise, there is still Moped, EV-Scoot mobility, autonomous Taxi, buses future,
Government to improve road demarcation for autonomous,
To enforce no road hogging temporary parking at the road side like Singapore.
Old Shoplots without car park? Provide the loading/unloading lane for them – no parking allowed.
Good choice!
Wait until GST, you will agree more with him. Rakyat will say:”Cukurlah ada BN, chicken rice pun ada GST!”
Told ya, everyone. There are majority malaysians were fed up traffic jams. That’s why tax holiday must end!
Tax holiday or not, traffic jams will just keep getting worse. It’s the increase in number of drivers, not sales of new cars. If cannot afford Civic, can buy Myvi. If cannot afford Myvi, can buy used car. Options are endless.
At least not to make heavy traffic jams like tax holiday
And what do you think those who already bought their cars, dump them? Got car but don’t use and take MRT? Traffic jam has no correlation with tax holiday.
I’m still talking about difference between tax holiday and without tax holiday based on traffic jams.
People cannot brain your statement. I agree with u, 1 driver only can drive 1 vehicles at a time.How many cars they have at their home, it doesnt really matter for traffic jams, unless he parked all along the road that disturb traffic flow.
People cannot brain becoz they are otak sotong. So many people explain still they don’t get it.
Nice try by defending so much. But have you own any first car? If don’t, don’t talk first,
because most malaysians low IQ, thats why they thought malaysia jam because car price is not high enough.
People need to factor that the covid risk make people want to drive alone. Some people still dont want go back normal, if they took carpool, took public transport,etc before covid, but now some still hesitate to do that due to covid risk.I fully agree if the employer encourage workers to work 4 days from office and 1 day WFH, but with specific schedule between sectors. Logically this will reduce traffics in big cities. People just accept the numbers from gov that vehicles no. is bigger than population, but only a few ppl know the numbers is not legit for comparison,if they include all registration number since british era. Im just trying to give construtive debates here.
I dont think we have low IQ, but maybe young generations cannot think in many perspectives. Only know to bash the based self-sentiment first before think thoroughly other factors/views.
Tax exemption shouldn’t come back that hurts people making traffic jam more
Most young generation have better many perspectives, even middle aged or matured people have better perspectives. But some of you, still having shallow thinking and not wide enough and you think that SST exemption won’t make any difference from with SST, that makes traffic jam more same? illogical! Only shallow thinking people will make SST exemption makes no difference from SST based on traffic jam, but why cars are getting more and causing more jams. This means some of you are not straightforward and not thinking wide at all
It’s education problem, not transport problem.
I won’t say most Malaysians are low IQ but i would say most that those commented here about traffic jams are caused by SST exemption are low IQ. Why?
1. People will still buy cars whether the tax is 100% or 300% if they need the car for work or for transport. No more SST exemption means they need to pay extra.
2. Traffic jams does not disappear with the introduction of SST. Before the exemption, when is cities like KL and JB free of traffic jams?
3. Traffic jams are mostly caused by poor planning of the Fed Gov. Cities routes are not planned properly, leading many cars to be jam packed on the same road. This is the major issue which you see in city centre.
To OMG guy,
It is because you still can’t refuse on why majority malaysians are fed up with heavy traffic jams while rejecting tax holiday. At least majority malaysians who fed up with heavy traffic jams have better educations
@City Planner
That means you are not driving at all, if you think that traffic jams are caused by SST exemption are low IQ. Most of the time, there are traffic jams but pre covid wasn’t as bad as post covid. 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. This is the reasons why sst exemption that causes huge burdens to all drivers that makes traffic jam more longer. But maybe, you actually forget the traffic jam difference between pre covid and post covid.
@City Planner
Yes, even with reintroduction of gst in 2015 or back to sst in 2018, traffic jams doesn’t disappear at all but there are traffic jam difference between pre covid with tax and post covid without tax.
@OMG
It is not education problem provided if you had already drive before pre covid and post covid that can tell big differences for traffic jams. If you don’t drive, then you can’t tell really differences between pre covid and post covid or maybe you have been using handphone all the time but not very adventurous to see what is going on outside between pre covid and post covid for traffic jam difference
If that’s the case, why have it in the first place? You mean our MOF set up the exemption to have more cars to cause traffic jams on the road and now decide not to? What you said does not make sense.
Maybe you don’t know anything. Saying not making sense….so it’s okay to exempt all cars and building up more traffic jams…..and public will get angry. So why you become finance minister for what? By causing people more pain by building up more traffic jam but okay to exempt with cars…. Doesn’t make any sense
I don’t think you get it. Let me explain in simple terms for you: The traffic jam is already there. IT ALREADY EXIST. Exempt or not does not make any difference. The public are already angry to the Gov, stopping exemption will only make them more angry as they have to pay more for the same car. Hope that make sense.
Traffic jam is common with sst, then replaced by gst in 2015 then back to sst again in 2018, but those are not as heavy as post covid with tax exemption.
1. If you have already drive before pandemic, you can tell any difference between pre covid and post covid for traffic jam differences.
2. You are wrong because public are already angry to the government that causing traffic jams was due to tax exemption which shown that they had realized the comparison between pre covid and post covid for traffic jam difference
“It’s confirmed – the SST exemption for passenger cars in Malaysia will end as scheduled on 31 June 2022”
31 June??? Fake news ke ni
It is actual if you read finance minister letter
Bodoh ke ni
vote with your wallets, don’t purchase any vehicles until SST, excise taxes and import taxes are all gone
this scheme exists for ckd electric cars
one car qualifies – volvo xc40 recharge ev
Fair deal for those who have already book before 30th June 2022, well done!! :)
THIS 10 DAYS GOING TO BE HECTIC FOR SHOWROOM, HAPPY NEWS FOR SHOWROOM DEALERS/SALESMAN TO COLLECT VEHICLE BOOKING.
THEN THE FUN BEGINS, EVERY SINGLE CUSTOMER WILL CHASE FOR VEHICLE BOOKING.
SHOULDN’T CONTINUE TO SST EXEMPTION, IMO. HAPPY BUYING GUYS.
Finally a good decision from the government. Im still waiting for my 1st car which is only Axia at 6mth now already. This is our only chance to get affordable car wthout the extra SST to be paid. Hopefully the manufacturer can still fulfil before the registration deadline.
Sad but a lot of good reasons! Great job YB!
the extra paperwork to track this will surely cause a backlog in car registration. some people may just decide to pay sst to skip queue.
Yes, looks like its going to belike this…
Scenario 1
1. Vehicle produced
2. Pay excise duty and SST
3. Register and deliver car
4. Claim back SST
I wonder how many months will it take to get the money back. Small dealerships will suffer.
Scenario 2
1. Vehicle produced
2. Pay excise duty and submit for SST exemption
3. Register and deliver car
This is the best way. But again, I wonder how long will the exemption process take… Customers may have to wait weeks after the car is produced…
Based on that 1 piece of A4 sized statement, I doub’t they’ve got it figured.
Luckily my car is still new and no need to buy car for the next 5 – 7 years.
That’s the way and more fair for those who can’t get the car before 30th June 2022 as book during tax exemption
Kick this money out from the office
You need to tissue to wipe your tears?
He is crying like baby!
This car based tax should stop forever. Malaysia should be free from GST, SST, Excise duty itu ini, and stop the unlimited fuel subsidy at the same time.
This will introduce more model, investor, EV kilang, Technology into Malaysia.
Stopping sales tax alone will provide some income for the country, but it won’t be sustainable.
That’s why we have tax rebate if do CKD,
Tax more for CBU.
If they want to sell cheap with less tax, set up Kilang, more local content, then good tax rebate.
As example, We used to had Naza Citra Kia Carens 2.0L RM59,888 to RM65,888.
https://paultan.org/2009/06/12/another-facelift-for-the-old-naza-citra/
Then, keep good management and control, with good after sales service can thrive well.
Will make worst if tax more for CBU. No need to tax more for CBU. CBU is also better quality car than CKD
Why the stingy company not doing good technology transfer?
We have the manpower here.
We can CKD with local parts.
We also can build local robotics.
Dreaming….
When there is no CKD,
You think the CBU player won’t squeeze your money?
Just see the AP importing old CBU.
U think a 35k$ BMW can become RM100k?
AP related to CBU?
AP related to CBU? Impossible
U turn again, 2 to 3 days b4 the end of June, MOF may xtend the SST exemption to August for Hari Kebangsaan.
The letter is official. You can’t just simply you turn again and again. It is already done. So you can cry from now
Are you against the official letter?
U-turn budaya kita.
“Janji itu bukan manifesto” sounds familiar?
U-turn now impossible!! It is already confirmed and official letter is there
KL-SG HSR also confirmed but what happened?
Uturn King PH took over, that s wat happen. As long we keep them at bay, uturn won t happen.
Yeah, blame PH. HSR was cancelled by BN.
Good
This the last swan song for BN UMNO govt. b4 dying for gud…
This is pas-bersatu-bn govt
I wonder is it apply for car before launch like the new HRV? Honda accept pre booking now
Good decision to withdraw SST exemption. Good decision for those SST exemption buyers who can’t get their car on time
Wait for the turn around statement next week. This will be not the first flip flop! Remember his earlier policy on bringing in money from overseas. It will be a faster turn around when he healise the tax payers will be voting for him to be a MP…….. LOL
Already took his time whether tax holiday again or not, he extend three times and loses few billions of ringgit already since last week and decide to announce tax holiday soon, and a week later, already decided for not to but to give chance for them to buy for tax holiday buyer till next year. So you can’t change anymore and stated CONFIRMED ALREADY, you can’t change anymore and tax holiday is just excuses tool
Remember the KL-SG HSR? Start – Postponed – Terminated – Revival – ?? Malaysia Gov is renowned for flip-flop policy even if it is confirmed. Shout out to the idiots that support this Gov.
Depending on whether gomen have money or not. But for this, since gomen has lack of money for sst exemption, needed to stop!
Uturn King PH took over, that s wat happen. As long we keep them at bay, uturn won t happen.
Yeah, blame PH. HSR was cancelled by BN. People know the truth, stop spinning the story.
Ironically, the MAA has always predicted vehicle sales to always increase every year. Imagine they expect vehicle sales this year to be 600k units compared to 500k+ units last year. If sales figures decline, it is a sign that the country’s economy is not good. Do they expect sales of 700k units next year?
I understand it relates to other industry chains, however there is nothing wrong with it if vehicle sales figures do not increase every year. I believe not all people expect to buy a new vehicle. there are more important things than always buying a new vehicle.
Less traffic jams, more better
LAWAN
Cars get expensive. Tengkiu Tengku
Soon, Roti Canai also we can’t afford with the introduction of GST. Tengkiu BN
Orang miskin also gets downvoted by saying the truth. You make us buy expensive cars and expensive foods. Your day will come BN, no more extension for you in GE15.
Please continue to cry more, poor people are also thinking smartly on why traffic jams are heavier while rejecting tax holiday.
I support you bro!
I’d like to book a car on Fridays.