Malaysia Extends Tax Exemption for New Car Purchases until End-2021

If you are in Malaysia and was in a rush to buy a new car before the Sales and Service Tax (SST) exemption deadline on the 30th of June this year, rush no more as the Malaysian government has announced an extension till the end of this year, that is 31st December 2021, to be precise.

The SST exemption for new cars was first introduced under the Penjana programme in June 2020, allowing car buyers to get 100% SST exemption for CKD vehicles and 50% SST exemption on CBU units. The exemption was supposed to end by December of last year but was further extended by another 6 months before this second extension. This is intended to spur demand in the local car market as the Malaysian economy has been hard hit by the pandemic.

If you are keen to advantage of this exemption, take note that it applies to all passenger cars, including MPV and SUV, but not pickups as they are classified under commercial vehicles.

So, if you’re in the process of purchasing a new ride, you still have time on your hands and there will definitely be new choices. Happy shopping!