Budget 2022: SST Exemption For CKD And CBU Cars Extended To June 30, 2022

The government has announced that the current sales tax (SST) exemption for new vehicles has been extended to June 30, 2022.

To reduce prices for passenger cars, the government of Malaysia applies a 100 percent SST exemption for locally-assembled (CKD) cars and 50 percent for fully-imported (CBU) cars.

Originally scheduled to end on December 31 last year, the SST exemption was first extended to June 30, 2021, and then to December 31, 2021.

In her statement, the President of Malaysian Automotive Association (MAA), Datuk Aishah Ahmad, said that extended SST exemption would help re-boost the sales of passenger cars.

“The chip shortage problem could also be solved with the decision made by our government today”, said Aishah.

It has also been announced that EVs will benefit from a road tax exemption of up to 100 percent under the proposal. Concurrently, an income tax relief of up to RM2,500 will be provided on the cost of purchasing and installing, renting or taking up hire purchase facilities, as well as subscription payments of EV charging facilities.