Finance Minister Tengku Datuk Seri Zafrul Aziz announced that the vehicle sales tax exemption will end on 30 June 2022, as planned. However, those who booked vehicles by 30 June 2022 have until 31 March 2023 to register them with the Road Transport Department (JPJ) to get the exemption.
“The extension of this vehicle registration period is a mid-point solution to balance the interests of consumers and national tax revenue which needs to be re-enhanced post-pandemic to ensure the welfare of the people and the economic well-being of the country continues to be preserved,” said Tengku Zafrul.
Tengku Zafrul explains that the exemption extension is because the 264,000 units of vehicles that have been booked during this sales tax exemption period have not yet completed their installation and cannot be supplied to the buyer. He added that it was due to a worldwide microchip shortage.
Additionally, the Finance Minister stated that so far, a total of 868,422 units of vehicles have been sold have also benefited from the sales tax exemption amounting to RM4.7billion.
“With the opening of the economic sector, the automotive sector has returned to full operations… However, there are a number of demands that cannot be met in the wake of disruptions to the global supply chain,” continued Tengku Zafrul.
In February, JPJ announced that they’re offering EV owners (as well as persons with disabilities) full exemption from road tax. The exemption began on 1 January 2022 and until 31 December 2025. The exemption for EVs is only for vehicles powered exclusively by electricity—not for vehicles that have a hybrid system like the new Corolla Cross.