KUALA LUMPUR: The Sales and Services Tax (SST) exemption for new vehicles has not been extended as the Ministry of Finance maintains the cut off date on June 30 this year.
The SST exemption was first announced in June 2020 and extended twice, to June 30, 2021, and then December 31, 2021.
In a statement, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said 868,422 vehicles were sold throughout the period, which amounted to a tax exemption worth RM4.7 billion.
"With the opening of the economic sector, the automotive industry has returned to its usual operations.
"However, there are still a number of requests that could not be met due to the global supply chain disruptions.
“Following this problem, a total of 264,000 units of vehicles booked during this exemption period have yet to complete installation and cannot be supplied to buyers,” he said.
Therefore, the government has extended the registration period for vehicles bought during the SST exemption until March 31, 2023, to enable car owners to enjoy the tax incentives.
"The extension of the registration period is a midpoint solution to balance the interests of consumers and the country’s tax revenue that needs to be increased post-pandemic.
“This is to ensure the wellbeing of the people and the country’s economy continues to be preserved,” he added.
Source: New Straits Times