Great news! The sales tax exemption for locally assembled (CKD) and fully imported (CBU) cars in Malaysia – which was set to end this Thursday on 31 December – will be extended to 30 June 2021. This was officially confirmed by the Ministry of Finance (MoF) yesterday evening.
According to MoF, its decision to extend the sales tax exemption under the government’s Short-Term Economic Recovery Plan (PENJANA) is to keep up the momentum of the local automotive sector’s growth. This is evident from the encouraging sales figures posted by car brands in Malaysia despite the ongoing COVID-19 pandemic.
Naturally, the amount of sales tax exemption for CKD and CBU cars (including MPV and SUV) remain the same at 100% and 50% respectively. This tax exemption will be valid until 30 June 2021; ample amount of time for car buyers to enjoy the discount.
Aside from this tax exemption, it’s worth noting that the new excise duty regulations set by the customs department – which would have increased prices of CKD cars by up to 20% – will not be implemented come next year. In short, it’s a great time to purchase a new car until 30 June 2021.