For those who have not managed to buy a new car to enjoy SST exemption under the PENJANA plan that was supposed to end on the 31 December 2020, good news for you as the Ministry of Finance has decided to extend it by another 6 months- until 30 June 2021.
According to the memo announced on MOF official Facebook page, the percentage of sales tax exemption remains unchanged from what was announced before – with 100% for locally-assembled (CKD) cars and 50% for fully-imported (CBU) cars.
All locally-assembled (CKD) passenger cars, MPV and SUVs will continue their exemption of the 10 per cent SST until 30 June 2021. Accordingly, imported (CBU) new cars will also continue to pay just half the SST rates (5.0 per cent) until 30 June 2021.
Car buyers can enjoy 100% SST exemption on Completely Knocked Down (CKD) cars and 50% for Completely Build-Up (CBU) cars
The 100% SST exemption for completely-knocked down (CKD) passengers car includes multi-purpose vehicles and sport utility vehicles. However, pick-up trucks are not eligible as they are classified as commercial vehicles. Whereas, fully imported new and used units of Completely Built-Up (CBU) vehicles will get a 50% exemption.
The move allow more time for buyers to make better choices to buy new vehicles
Malaysia Automotive, Robotics and IoT Institute (MARii) chief executive officer Datuk Madani Sahari said it would allow the sector to maintain positive sales performance seen at the end of 2020.
“Although the automotive sector showed stability in the third and fourth quarters of 2020, the extension provides more time for vehicle and component manufacturers to implement their recovery plans and marketing strategies, post-pandemic.