MOF: SST exemption for new CKD and CBU cars extended until 30 June 2021

The SST exemption for new cars under the PENJANA plan was supposed to end on the 31st December 2020 but it is now extended by another 6 months. This has been confirmed by the Ministry of Finance today.

It was earlier reported that the Ministry has issued a memo on the extension to the Malaysian Automotive Association (MAA) and the Malaysian Association of Malay Vehicle Importers and Traders (PEKEMA).

Based on the official announcement, locally-assembled vehicles (Completely Knocked-Down) will continue to get 100% SST exemption while fully imported (Completely Built-Up) vehicles will get a 50% exemption until 30th June 2021. The exemption is applicable to all passenger cars including MPV and SUV.

Interestingly, it was earlier reported that MAA’s request to extend the sales tax exemption was denied. Without the extension, Paultan mentions that new buyers are still eligible for the exemption if they are invoiced by 31st December and the registration of the new car must be completed by 31st January 2021.

For those who are still considering of getting a new car in the next few months can still enjoy substantial savings. This is good news especially for Proton X50 buyers that are still waiting for their new SUV. As of end November 2020, Proton has delivered over 2,200 units of the X50 versus over 27,000 total bookings received during the launch month.

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