MoF: Tax exemption for locally assembled buses

Lim said the decision was made to improve the quality of public transportation. — Picture by Choo Choy May
Lim said the decision was made to improve the quality of public transportation. — Picture by Choo Choy May

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KUALA LUMPUR, Oct 31 — Finance Minister Lim Guan Eng today announced a Sales and Services Tax (SST) exemption for locally assembled buses purchased by bus operators with legal permits.

In a statement, Lim said the decision was made after an appeal by the Association of Bus Operators.

“This move will save bus operators from SST tax burden at 10 per cent for each bus priced between RM250,000 and RM900,000.

“As of today, there are 115 completely knocked down (CKD) buses and 360 semi-finished buses that have not been removed from local assembly plants,” said Lim.

He said bus operators need to rely on new vehicles to provide a convenient and safe service to the public, especially schoolchildren and low-income earners.

Lim added the decision was made to improve the quality of public transportation in Malaysia.

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