Finance minister Tengku Zafrul Aziz announced earlier today that the government has confirmed that the exemption of sales and service tax (SST) for passenger vehicles will maintain its scheduled deadline of 31 June 2022. Implemented since 15 June 2020, the government has introduced full sales tax exemption on locally assembled passenger vehicles (including MPV and SUVs) and 50% sales tax exemption on imported CBUs.
Initially slated to expire by 31 December 2020, the deadline for this exemption was extended three times until its finalised date due to the COVID-19 pandemic. According to the ministry, a total of 868,422 units of vehicles have been sold so far throughout this duration, with Malaysians benefitting from sales tax exemption amounting to RM4.7 billion.
However, the Ministry of Finance adds that there are a total of 264,000 units of passenger cars that are booked within the exemption period that are still undelivered. This is due to numerous factors that have affected vehicle assembly lines across the world, including the pandemic, war in Ukraine, and the global chip shortage – the latter of which have also caused several key players in the automotive and also tech industries to fall short on meeting consumer demands.
Kenyataan Media YB @tzafrul_aziz , Menteri Kewangan Berkenaan Pengecualian Cukai Jualan Kenderaan Penumpang: Tarikh Akhir Kekal 30 Jun 2022; Tempoh Pendaftaran Kenderaan Dilanjutkan Ke 31 Mac 2023. pic.twitter.com/UNlvaIXn45
— Ministry of Finance (@MOFmalaysia) June 20, 2022
In light of this, Zafrul reveals in the same statement that the government has decided to extend the deadline for new vehicle registrations to 31 March 2023, allowing consumers to still benefit from the SST exemption incentive for car bookings made before 30 June this year. The minister explains that this extension would act as a midpoint solution to balance the interests of consumers and the country’s tax revenue. The latter of which, he adds, needs to be increased post-pandemic in order to ensure the welfare of Malaysians and the country’s economic well-being continue to be preserved.
Meanwhile, as announced by Zafrul during the tabling of Bajet 2022 in October of last year, purchase of electric vehicles are fully exempted from import duty, excise duty and sales tax, as well as receiving 100% road tax exemption. In addition, an income tax relief of up to RM 2.500 is also granted to individuals for the purchase, installation, rent, hire, and subscription fees for EV charging facilities.
(Source: Ministry of Finance [Twitter])
The post Government Maintains 30 June SST Exemption Deadline For Passenger Vehicles appeared first on Lowyat.NET.