PETALING JAYA: The finance ministry in a circular today has stated that the sales tax exemption for the purchase of locally assembled completely knocked-down passenger vehicles will not end on Jan 1 but will be extended until June 30, 2021.
The ministry has also extended the 50% discount on sales tax for new and second-hand completely built-up imported vehicles until June next year.
Under the sales and services tax regime, vehicles are subjected to a 10% sales tax.
The tax exemption and discounts were announced as part of the Penjana economic stimulus package last June to revitalise the demand for vehicles, but was set to end on Dec 31, 2020.
The Covid-19 pandemic, as well as the implementation of the movement control order in March and April has severely affected the industry. It was reported that only 141 vehicle sales were recorded in April compared with 49,935 in the same period last year.