No SST exemption for cars beyond June 30, says Finance Minister

SHAH ALAM - The automotive sales and service tax (SST) exemption will not be applicable for cars purchased after June 30, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said.

However, those who have purchased their cars by June 30 are allowed to register their cars under SST until March 31, 2023.

He said the decision was made to balance the interests of customers and tax revenue after the pandemic.

“Accordingly, to enable buyers who make reservations for vehicles until June 30, 2022 to continue to enjoy tax exemption incentives, we are pleased to inform you that the registration period of the vehicle at the Road Transport Department (JPJ) is now extended until March 31, 2023.

“The extension of this vehicle registration period is a midpoint solution to balance the interests of consumers and tax revenue which needs to be re-enhanced after the pandemic to ensure the welfare of the people and the economic well-being of the country continues to be preserved,” he said in a statement, today.

He also said the installation of a total of 264,000 units of vehicles booked during the exemption period have yet to complete and could not be supplied to the buyers.

This was caused by the worldwide shortage of semiconductor microchips which are widely used across several industries including the automotive industry.

The government had introduced the full sales tax exemption on passenger vehicles (including MPVs and SUVs) and 50 per cent sales tax exemption on imported passenger vehicles (CBU) from June 15, 2020 until June 30, this year.

To date, a total of 868,422 units of vehicles have been sold and citizens have benefited from the sales tax exemption amounting to RM4.7 billion.