(Photo Credits: The Star)
Prime Minister Tan Sri Muhyiddin Yassin previously announced a series of economic measures to stimulate the country’s economy, which has been badly affected by COVID-19. Amongst them is a tax exemption scheme aimed at the automotive industry.
Aimed at revitalizing demand and stimulating the automotive industry, specifically to boost new car sales, this initiative is believed to be at a quantum of around RM897 million.
Under this relief measure, there will be a 100% sales tax exemption on locally assembled (CKD) models and a 50% exemption on fully imported (CBU) models. This measure will kick-start on 15 June 2020 and end on 31 December 2020.
The current sales tax for CKD and CBU models are 10%. Hence, this means that taxes for CKD will be completely eradicated, while the taxes for CBU will be halved to 5%.
While this may seem like a welcome gesture, it is worth taking note that this applies only to the vehicle’s sales tax. This does not apply to import and excise taxes (a legislated indirect tax imposed by the government, usually to discourage the purchase of goods). However, the overall prices of new cars should be lowered.
In an official statement, Mr Ravindran, president of UMW Toyota Motor Sdn Bhd (UMWT), said he warmly welcomed this initiative.
Mr Ravindran mentioned that “with the tax exemptions, we will be making the relevant adjustments to the retail prices of all our models and apply them by June 15.”.
He also said that the Malaysian auto industry had been “greatly affected” by the long period of inactivity during the Movement Control Order (MCO) period.
Deputy Chairman of UMW Toyota Mr Akio Takeyama also added that the company “appreciate the support from the Government to help boost this industry".
So, for car owners looking to upgrade or purchase a brand-new vehicle, this might be your chance.
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