Here’s a bit of good news to end the year: the prices of locally assembled (CKD) cars will not increase come 2021. Originally, new excise duty regulations set by the customs department would’ve increased prices of CKD cars next year, but this is no longer the case.
This was confirmed by the President of Malaysian Automotive Association (MAA), Datuk Aishah Ahmad, when contacted by the folks over at Paul Tan. This is great news, given that CKD car prices would’ve increased by up to 20% if the new excise duty regulations were put into effect.
However, it’s worth noting that car prices in general will increase in 2021: the sales tax exemption on CKD and fully imported (CBU) cars as part of the government’s Short-Term Economic Recovery Plan (PENJANA) will be ending on 31 December 2020 this Thursday. Unfortunately, it seems like the tax exemption period will not be extended.
Nonetheless, at least the prices of CKD cars will only be affected by the reintroduction of sales tax, instead of yet another price hike due to new excise duty regulations.