KUALA LUMPUR: The sales tax exemption for passenger cars including multi-purpose vehicles (MPVs) and sport utility vehicles (SUVs)will be extended until June 30 next year, the Ministry of Finance (MoF) said.
In a statement on Tuesday, the MoF the exemption was to continue to drive the momentum in the development of the automotive sector.
The 100% exemption will be for locally assembled or completely knocked down (CKD) cars.
As for new imported completely built-up (CBU) cars and second-hand units, including MPVs and SUVs, the exemption will continue to be 50%.
“This exemption will be effective from Jan 1,2021 to June 30,2021, ” it said.
According to Bernama, currently, the sales tax for vehicles is set at 10% for both locally assembled and imported cars.
With the exemption, it means that the sales tax is fully waived for the purchase of locally assembled cars while a 5% tax is imposed on imported cars.