2020 is the year of many firsts for all of us. We were locked in at home for two months, every social norm as know has been turned upside down and of course, in our context, the local automotive industry has had to implement new Standard Operating Procedures (SOP) in every aspect of their business and constantly adapt to new circumstances.
But what we just heard was least expected. In the most recent speech by our Prime Minister Tan Sri Muhyiddin Yassin that just took place today, the government has agreed to exempt sales tax of locally-assembled vehicles (CKD) by 100%.
As for fully imported vehicles, sales tax will be reduced by 50%. The initiative will be effective beginning 15th June 2020 till the 31st December 2020 in efforts to fire up a somewhat stagnated automotive industry and of course more generally to boost the economy.
Remember how sales charts shot up for every conceivable brand in Malaysia during the 3-month post GE14 tax holiday? Will we be seeing another wholesale of vehicles soon? Only time will tell.
Here’s an excerpt from Prime Minister Tan Sri Muhyiddin Yassin’s speech today:
“Selain itu, bagi menggalakkan pertumbuhan industri automotif negara, Kerajaan bersetuju memberi pengecualian cukai jualan sebanyak 100 peratus ke atas penjualan kereta penumpang pemasangan tempatan, dan 50 peratus bagi kereta penumpang yang diimport bagi tempoh mulai 15 Jun 2020 hingga 31 Disember 2020.”