Sales Tax Exemption Period Extended
The Malaysian Ministry of Finance (MOF) has released a press statement regarding the extension of the sales tax exemption period to June 30, 2021.
This followed by the original sales tax exemption, which was running from June 15, and was supposed to end on December 31, 2020. This new vehicle sales tax exemption is part of the government's Economic Recovery Plan (PENJANA) to spur demand within the local automotive market, which resulted to cheaper passenger cars. However, it is not eligible for commercial vehicles.
The percentage of the sales tax exemption remained the same from what was announced before, which is 100 percent for Completely Knocked-Down (CKD) cars and 50 percent for Completely Built-Up (CBU) cars.
MOF said, "We are pleased to announce, to help further drive the automotive sector's economic momentum, MOF has approved the extension on Sales tax Exemptions. This exemption will be enforced from January 1, 2021 until June 30, 2021.
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