Sales Tax exemption is government initiative to offset economic impact of pandemic
The government has announced an exemption on Sales Tax on new cars sold between 15 June and 31 December 2020. The incentive is to offset the economic impact of the pandemic and is part of the Government’s Short-Term Economic Recovery Plan.
For locally-assembled (CKD) models, the exemption will be 100% while for imported (CBU) models, it will be 50%.
The Malaysian automotive industry, like those in other countries, has been severely affected by by the Movement Control Order.