Only a couple of months left before 2021 is over, which will also signal the end of the sales tax exemption for locally assembled (CKD) and fully imported (CBU) cars in Malaysia. Well, you may not have to rush out to get your brand new car before the year ends: the exemption period may be extended until 2022.
According to a report by Berita Harian, the extension of the sales tax exemption for CKD and CBU cars could be announced during Budget 2022 next week on 29 October. According to Group Chief Economist of RHB Bank, Sailesh K. Jha, the extension is likely in light of disappointing sales for 2021 brought on by extended COVID-19 lockdowns.
If there is an extension, it will likely be prolonged by another six months. After all, this would line up with previous extensions. Ever since the sales tax exemption was first introduced in June 2020, it has been extended twice already to 31 December 2021.
We’ll find out if the government decides to extend the sales tax exemption for CKD and CBU cars next Friday on 29 October 2021 during Budget 2022. If it does get extended, we reckon many car buyers – especially those who are waiting to get the extremely popular Proton X50 and Perodua Ativa – will be thrilled.