Here’s What Malaysia’s Leading Automobile Companies Have To Say About The SST Exemption Extension!

Most automotive industry players in the country welcomed the sales tax exemption (SST) measure on locally assembled passenger vehicles (CKD) and fully imported models (CBU) which was extended for another six months.

The decision was a part of the assistance of the Strategic Program for Empowering the People and the Supplementary Economy (Pemerkasa PLUS) announced last night.

The Prime Minister, Tan Sri Muhyiddin Yassin said the exemption would be effective from July 1 to December 31.

Following this, President and CEO of Mercedes-Benz Malaysia (MBM), Dr Claus Weidner welcomed the government's decision.

“We welcome the government's decision to extend the sales tax exemption until the end of this year. Last year we saw tangible benefits from the tax incentive relief introduced by the government, helping the industry recover faster and drive demand,” he said in a statement to Caricarz this afternoon. 

In line with Weidner is TC Subaru Sdn Bhd, the official distributor of Subaru vehicles in Malaysia. He mentioned that the decision coincided with the recent implementation of the total lockdown.

He fully supports the government’s efforts to help revive the automotive industry in the country.

"With an initiative like this, it will to some extent enable vehicle sales efforts to recover even though the showrooms have to be closed due to the increasing daily Covid-19 cases," he said briefly when contacted by Caricarz.

“UMW Toyota Motor Sdn Bhd welcomes the announcement of the extension of the vehicle sales tax exemption period by a further six months until December 31, 2021. In addition to the tax exemptions we will continue to provide financial offerings and digital services for our customers along with our strong customer service network." said President of UMW Toyota Motor, Ravindran K. 

We appreciate the support from the Government to help boost the industry”, he continued. 

Meanwhile, the President of the Malaysian Automotive Association (MAA), Datuk Aishah Ahmad also said that her party also fully supports all measures and decisions taken by the government.

However, she added that he hopes this move will increase vehicle sales during the six month period.

"We also hope that this tax exemption will enable the automotive industry to maintain annual sales growth," she said.

In the same announcement, E hailing drivers also will be receiving a subsidy of rm500 to help them go through these hard times.