In line with the government’s Short-Term Economic Recovery Plan (PENJANA), locally assembled (CKD) cars will receive 100% sales tax exemption. But this initiative is only effective until 31 December; in order to keep driving car sales, Proton Edar hopes that the tax exemption period will be extended.
The CEO of Proton Edar, Roslan Abdullah, expressed this in an interview with Berita Harian. “We’re hoping the government will consider extending the tax exemption period another six month until June 2021, or at least until March next year,” he was quoted as saying.
Based on the sales performance of Proton over the past few months, it’s evident that the tax exemption period helped the national carmaker recover lost sales during the Movement Control Order (MCO). “Extending the tax exemption period will also support the entire automotive and industrial supply chain,” Roslan added.
If the government does extend the tax exemption period, carmakers and consumers will benefit greatly from it. Proton, for one, will be able to offer its upcoming B-segment SUV, the Proton X50, at a more competitive price point for a longer period of time. After all, the new model hasn’t even been officially launched yet.
Hopefully, the government will consider to extend the sales tax exemption on cars. Given the current COVID-19 situation in our country, we may need it beyond 2020.