Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said the exemption will be extended until June 30 next year.
“To reduce the cost of vehicle ownership, the Government will extend the 100% sales tax exemption on CKD (locally assembled) passenger vehicles and 50% on CBUs (imported) including MPVs and SUVs for six months until June 30, 2022,” said Zafrul in the Budget 2022 presentation.
The exemption was introduced by the government in 2020 to drive sales in the automotive sector which was affected by the Covid-19 pandemic.
A screengrab from the live broadcast of the Budget 2022 speech from Parliament earlier today.
In other auto-related matters, Zafrul said the Road Transport Department (JPJ) would be boosted with 20 new mobile counters to make it easier for rural folks to access the department’s services.
The department would also be given 100 new computer kiosks at Urban Transformation Centres nationwide to enable the public to access JPJ’s services such as renewal of driving licence.
"To continue providing government services outside office hours, a total of 100 kiosks complete with computer facilities will be provided at UTCs.
"This is for the public to access JPJ’s services such as renewal of driving licence," said Zafrul.
On road infrastructure works, Zafrul the government has allocated RM3.5bil for infrastructure projects, among them the Pan-Borneo Highway and Central Spine Road,
He also said RM200mil was allocated through the creation of a Third Infrastructure Facilitation Fund under the supervision of the Public Private Partnership Unit, which is under the purview of the Prime Minister’s Department.
“In addition, the government will continue implementing small and medium projects worth RM2.9bil that will target Class G1 to G4 contractors across the country.
“This allocation involves maintenance of roads projects, overhaul of obsolete infrastructure and equipment of public universities, polytechnics and community colleges as well as other projects involving social amenities at the rural areas,” said Zafrul.
Budget 2022 has a total allocation of RM332.1bil, the largest ever for the country.
