The Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) has urged the government to extend the sales and service tax (SST) exemption to those who book their vehicles after June 30 this year if they register them by March 31, 2023.
As reported by FMT, FMCCAM president Datuk Tony Khor said extending the registration deadline but not the SST exemption would cause a significant spike in bookings that could overwhelm dealers.
“We already have over 200,000 bookings and it won’t be easy for dealers to manage the demand in such a short period,” he said. FMCCAM represents the interests of around 3,500 independent car dealers in the country.
On Monday (June 20), finance minister Tengku Datuk Seri Zafrul Abdul Aziz confirmed that the SST exemption will not be extended beyond June 30, 2022, but the government is making an allowance for the SST exemption to be applied for any vehicle booked before July 1 and registered before March 31, 2023.
With only a few days left until the SST exemption (100% for CKD cars, 50% for CBUs) ends, it’s likely that an avalanche of bookings will come in as potential car buyers look to take advantage of the tax holiday to “lock in” pricing.
Khor said the government should instead base the SST exemption on the registration date instead of the booking date. However, he said he was happy with the additional nine months given for registration considering car companies are currently faced with inconsistent vehicle production schedules due to global supply chain issues.
On a related note, economist Geoffrey Williams of the Malaysia University of Science and Technology told FMT that the government’s decision not to extend the SST exemption was the right one.
“We are coming out of the Covid-19 pandemic, and we should remove the special measures put in place to support various sectors during that policy-induced crisis,” he said, adding that it was fair that buyers were allowed time to register their vehicles. “There will be some volatility in sales but eventually this will smooth out. There are no long-term implications for the economy or the automotive sector,” he added.
Did the government make the right decision by not extending the SST exemption period? Will you be rushing to place a booking, or have you already done so? Share your thoughts in the comments below.
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So by not extending SST exemption, the Gov is making more people buy cars. Instead of reducing cars on the roads, the Gov is increasing the number of cars, causing even more traffic jams? Our MOF is a genius
Fully disagree. By firming the deadline there will be finite amount of sales hence finite amount of sst exempted cars will be sold. This unlike current arrangement where sst continues on forever then you have infinite high numbers of new cars sold. The MOF is right to stand his foot down on the end date but also give some reprieve to those who yet to get their cars due to chip shortages which they cannot control. Such a decision is neither too harsh nor too soft and it is fair to all parties.
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Cars are not essential and will add burden to people by resuming SST exemption that will create more traffic jam. Now, please support how to resolve food prices including chicken
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If you think cars are essential? What’s so good about that? By causing more traffic jams and making public more angry
Agree, PH DAP has said it before. Glad that you finally understood.
https://paultan.org/2022/05/31/driving-a-car-in-malaysia-should-be-made-a-luxury-not-a-necessity-says-dap-assemblyman-liew-chin-tong/
Looks like i hit a nerve with someone. If you dislike what i said, why don’t you debate with me instead of disliking me multiple times behind the monitor like a coward? It only show what mentality your government is, not a good publicity i say.
@Chicken Genius
You mean one person from sst exemption supporters has many dislikes when people fed up with heavy traffic jams while rejecting tax holiday when people are spoken their truth unlike sst exemption supporters
There might be layoffs from Jan-June 2023 due to coming recession.So be prepared,u may get SST exemption but your job might be at stake.
Seems,some Msians might be buying on impulse,in view of much forecasted downturn.Good luck.
If kena layoff at least still got cheaper SST exempted car to do Grab
Why complain. Lucky buyers that registered before 30th June, should be good enough. Therefore, traffic jams shouldn’t build more anymore
I’m not sure about traffic jams but i’m sure ministers salaries will continue building.
Already lose their money and asking so more and will make worst for food prices up
So you’re saying our Gov is useless since they lose money and make food prices go up?
But government not enough revenue to extend sst exemption….
But government enough revenue to pay ministers salaries…
But slowly growing salaries in their pockets. And still spending revenue on sst exemption will lose out billions of ringgit. Earning more slowly but spending rapidly
apa lagi mereka mahu?
Greed!
Subsidy for food is much better than exempting for cars!
Give them an inch they want a foot.
Betul. and give them a foot they want a yard. Actually just stick to the original plan to end this SST by end of this month then case close d. Nobody will die because of that…SST car is not any where near ESSENTIALS
SST Exemption is just marketing gimmick
If BN does not give extension for SST exemption, then we should do the same and not give them extension in GE15. Vote smartly
How about food first? Food prices gonna jack up from July 1, and did you think voters will vote if food prices will go up from July 1. If you talk about SST exemption end that voters will vote, people will not look at that
Fully agree with you, food prices must be given consideration. If Gov cannot control food prices from jacking up, then we need a new Gov that can do that.
Copy paste: “Why complain. Lucky buyers that registered before 30th June, should be good enough. Therefore, traffic jams shouldn’t build more anymore”
eventhough PM from BN… they are not BN government. It’s PN. Get your fact right.
Same bed but different dreams. PM should change to PAS.
Wow so many commenting against cheaper cars in an auto blog and this comment will get tonnes of dislikes lol.
Because sst exemption supporters won’t understand and I don’t get it why one people can do so many dislikes when majority malaysians are fed up with traffic jams and rejecting tax holidays
Tepuk dada tanya selera
I know right? Most commenting against cheaper cars here are BN troopers hired to defend the Government. Fun Fact: Do you know that Rosmah spent RM100000 a month hiring cybertroopers to defend her reputation? Imagine what will BN spend. All these ‘SST Exemptions causing Traffic Jams’ is just a BN propaganda to brainwash the people into believing the untrue. If you get lots of dislikes, most likely it’s by the troopers.
all from one guy with multiple dupes. Rakyat Malaysia and Logical Deduction are the SAME person for example
Time to support how to resolve food prices. Cars are not so essential and it is true that SST exemptions will cause more traffic jams, not about BN propaganda, but many people says that.
True that. They just say but they don’t know whether they bought their car before pandemic or either that they are just playing their hand phone without any adventrous to see what’s going on between pre covid and post covid which they don’t really care but trying to making their excuses as if tax exemption are still okay.
As long as if you drive before pre covid, then you call tell big traffic jam difference between pre covid and post covid
Don’t talk cock on the pre/post covid. everyone who owned a car and driving on the road are causing the traffic jam. not the new buyer. if you keep blame on this, why don’t starting today you take public transport and walk.
Yes I owned it. Traffic jam is common but if you take a look between pre covid and post covid, there are big traffic jam difference. I am not blaming this but it is the truth. Aside that, like it or not, tax exemption will remove soon and just that you need to work hard and buy your own car. Tax exemption causes more traffic jam. I hope you understand.
So now it’s Covid and not SST exemptions that cause traffic jams?
Yes, u-turn lagi. See how many u-turns they would make.
Your dreams
Oh my goodness! What are you talking about, this isn’t lockdown anymore. Aside that, tax exemption will causes more traffic jams, provided if you experience more
Food should be exempt, not cars!!
SST Exemption is just marketing gimmick.
Is food more important or cars more important? Is traffic solution than cars is more important or cars more important than traffic jam solution?
Disagree.
for those who thinking no more tax exemptions will improved the traffic jam situation are too naive. everyone who owned a car and drive on the road is responsible to cause the traffic jam, not the new car buyer.
No more tax exemptions will improved the traffic jam situation are too naive?? Hahaha….what a great laugh!! If you think sst exemption is benefit, then you are still not clever and public will be angry with you if you keep asking for tax exemption
Yeah, only you is laughing by yourself. with or without tax not the root caused of traffic jam. SST extra paid just ~5% of your vehicles price not a big deal for most of the people, by loan it just cause a little more money. everyone saw you naive because until now you still think stop tax will improve traffic this kind of thinking is very childish.