If you missed out on buying a car in the first six months of the vehicle sales tax exemption period, don’t worry! The Ministry of Finance announced in a statement made yesterday (29 December), that the sales tax exemption will be further extended until the end of June in 2021.
Previously, the government offered a full 100% sales tax exemption on locally-assembled cars and a 50% exemption for imported vehicles under the PENJANA stimulus package. The exemption period was only supposed to last until 31 December 2020 before it’s extension was announced.
MOF added that the full sales tax exemption will be implemented for locally-assembled passenger vehicles including multi-purpose vehicles (MPVs) and sport utility vehicles (SUVs) which are also known as completely knocked down (CKD) vehicles, said Bernama.
As for imported vehicles, a half tax exemption will apply. “A 50% sales tax exemption is levied on completely built-up (imported) passenger cars, including new and used MPVs and SUVs,” said the ministry in their statement, as recorded by The Edge Markets.
The sales tax for both locally assembled and imported cars is now set at 10 per cent. However, with the exemption, the sales tax will be fully waived for those who purchase locally assembled cars. Alternatively, those who purchase imported cars will only have to pay for a five per cent tax imposition.
So if you’re still considering your options on buying a vehicle, you have plenty of time to do so! What do you guys think about this?
Also read: Honda, Perodua & Other Car Brands That Are Reducing Their Prices For The 2020 SST Exemption!
