KUALA LUMPUR, Dec 29 — The Ministry of Finance (MOF) has announced the extension of the vehicle sales tax exemption period by a further six months until June 30, 2021.

The government had previously given a sales tax exemption for the purchase of new vehicles for the period of June 15 to December 31, 2020.

In a statement today, the MOF said the full sales tax exemption was implemented for locally assembled — also known as completely knocked down (CKD) — passenger vehicles, including multi-purpose vehicles (MPVs) and sport utility vehicles (SUVs).

“A 50 per cent sales tax exemption is levied on completely built up (imported) passenger cars, including new and used MPVs and SUVs,” it said.


Currently, the sales tax for vehicles is set at 10 per cent for both locally assembled and imported cars. With the exemption, it means that the sales tax is fully waived for the purchase of locally assembled cars while a five per cent tax is imposed for imported cars. — Bernama