Just as rumours suggested, the sales tax exemption on locally assembled (CKD) and fully imported (CBU) vehicles have been extended yet again. Previously set to end on 31 December 2021, the exemption period is now extended to 30 June 2022.

Given that the automotive sector was not allowed to operate due to extended COVID-19 lockdowns between June to August 2021, this is very, very welcome news. It’s worth noting that this sales tax exemption was first introduced in June 2020; this is now the third extension.

Naturally, the sales tax exemption is the same as last time. CKD cars – which also include SUVs and MPVs, of course – will get 100% sales tax exemption, while CBU models will get 50% exemption instead. Needless to say, we imagine both carmakers and buyers will be thrilled by this extension.

This is especially the case for those who are still eagerly waiting to take delivery of hugely popular models such as the Proton X50 and Perodua Ativa. Anyway, to recap, the sales tax exemption on CKD and CBU cars will now end on 30 June 2022.