30 Dec - 1 min read
The Ministry of Finance has extended the sales tax exemption for passenger cars for another six months until 30 June 2021. The sales tax exemption was initially given for the period of 15 June to 31 December 2020 as part of the PENJANA Economic Recovery Plan.
In a statement, the Ministry of Finance said that the extension was aimed at continuing to drive the momentum in the development of the automotive sector. The sales tax exemption applies to passenger cars, including multi-purpose vehicles (MPVs) and sport utility vehicles (SUVs).
Locally assembled or completely knocked down (CKD) cars will continue to be given the 100% sales tax exemption, whereas a 50% tax exemption is levied on imported or completely built up (CBU) passenger cars.
The sales tax for vehicles in Malaysia is currently set at 10% for both locally assembled and imported cars, so the exemption means that the sales tax is fully waived for locally assembled cars and charged at 5% for imported cars. You can refer to our article for a deeper look at how much you would save thanks to the sales tax exemption.
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