Customs Dept: Cars will not be exempted from SST

Datuk Seri Subromaniam Tholasy

PETALING JAYA: The Customs Department is denying media reports saying that cars will be exempted from the sales and service tax (SST).

In a statement on Thursday (July 19), Customs director-general Datuk Seri Subromaniam Tholasy said that that the proposed exemption is only for certain components of Completely Knocked Down (CKD) vehicles.

"When the vehicle is fully assembled from the imported CKD components, the completed vehicle is still subject to a sales tax," he said.

Customs had earlier released a 292-page list of items which it proposed to be exempt from the sales tax portion of the SST.

The list includes CKD components.

Several media reports, quoting the list, then mistakenly reported that cars would be exempted from SST.