Perodua: Extension of Sales Tax Exemption Is What the Industry Needs
April 5, 2022 Andrew Cheng

The current sales tax exemption – which has already been extended three times already – is set to end on 30 June 2022. Since the exemption period is set to end this quarter, Perodua is asking for a further extension from the government.

“Perodua also echoes MAA’s (Malaysia Automotive Association) request to further extend the sales tax exemption as factors such as the global semiconductor supply disruption and Covid-19 cases are still impacting the industry,” said the CEO and president of Perodua, Dato’ Zainal Abidin Ahmad.

“Right now, the local automotive ecosystem is starting to recover and an extension in the sales tax exemption is what the industry needs for sustained growth during this recovery period,” he added.

Originally introduced in June 2020 – yes, it was first announced two years ago – the sales tax exemption was implemented to help the automotive sector recover lost sales due to the adverse economical effects of COVID-19. CKD cars – which also include SUVs and MPVs, of course – get 100% sales tax exemption, while CBU models receive 50% exemption instead.

It remains to be seen if the government will give a fourth extension to the sales tax exemption for passenger cars in Malaysia. Given that there are three months left before the exemption period ends, there’s still some time for the government to deliberate.