PETALING JAYA: Locally assembled cars will still be slapped with a 10% sales tax when the re-introduced sales and services tax (SST) goes into force from Sept 1, says the Malaysian Automotive Association (MAA).
When contacted, MAA president Datuk Aishah Ahmad clarified that CKD (completely knocked-down) packs are automatically exempted from sales tax under the new tax regime. Previously, much paperwork had to be filed to qualify for such exemption.
However, when fully assembled at a local plant, each completed car will still be subjected to the 10% tax.
Earlier today, local media had seized on a proposed Customs Department list posted on its website that indicated passenger vehicles are among the list of tax-exempted products.
Aishah said on Wednesday that MAA expected car sales for 2018 to be dampened once the SST kicks in and the 10% tax is applied.
Finance Minister Lim Guan Eng on Tuesday announced that under the re-introduced sales and services tax (SST) from Sept 1, services will be taxed at 6%, while the sale of goods will incur a 10% tax.
Car makers have reported bumper sales since the tax holiday began at the start of June when the Goods and Services Tax (GST) was zero-rated under the new Pakatan Harapan government.
