PETALING JAYA: Prime Minister Tan Sri Muhyiddin Yassin has announced that locally assembled cars will be given 100% sales tax exemption, while fully imported cars will get 50% sales tax exemption.
The exemption period is from June 15 to Dec 31, 2020.
The measure will provide some relief to car companies and prospective customers as the country attempts to recover from the Covid-19 crisis.
The tax relief for the auto industry was among a host of measures announced in the government’s Short-Term Economic Recovery Plan earlier today. The plan involves a total government outlay of RM35bil.
Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said the sales tax exemption was good news for car companies and their dealers who have been rolling out various incentives and promotions to boost sales.
Aishah said the industry was going through a rough patch and this was amplified by poor demand as people were shying away from buying cars.
MAA is sticking to its latest 2020 total industry volume (TIV) forecast of 400,000 units for the time being. It had made an initial forecast of 607,000. The 400,000 units forecast would represent a 34% contraction from 2019’s 604,287 units. It also marks the first time in 13 years since the TIV failed to surpass the 500,000-unit mark.
For those using public transport, the Government has introduced a My30 unlimited pass that allows commuters to pay only RM30 a month for unlimited rides. It is open to all nationalities, beginning June 15 until the end of 2020.
