In light of the COVID-19 total lockdown happening in Malaysia, the government announced a new PEMERKASA+ initiative. One of the benefits announced is an extension on the sales tax exemption for locally assembled (CKD) and fully imported (CBU) cars to 31 December 2021.
Given that the majority of the automotive sector is not allowed to operate throughout the total lockdown, it’s great to see that the sales tax exemption on CKD and CBU cars is extended to end of the year on 31 December 2021. It was originally set to end on 30 June next month.
While the details of the extension have not been revealed yet, it should be similar to the previous sales tax exemption. 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. To recap, the sales tax exemption on CKD and CBU cars will now end on 31 December 2021.