SST exemptions period extended to June 30, 2021

In a memo issued to the Malaysian Automotive Association (MAA) and Malaysian Association of Malay Vehicle Importers and Traders (PEKEMA), the Finance Ministry has today announced that the sales tax (SST) exemptions period that is set to expire after the 31st of December 2020, will be extended to the 30th of June 2021.

As such, all locally-assembled (CKD) passenger cars, including SUV and MPVs (but not commercial vehicles such as pick-up trucks), will continue to be completely exempted from the 10% sales tax, while imported passenger cars will still enjoy a 50% cut in SST (at 5%).

The news comes as a surprising turn of events, as just recently the MAA’s request for an extension to the sales tax exemption period has been denied by the government.

The sales tax exemption period is part of the government’s short-term economic recovery plan (PENJANA), designed to spur the demand in the automotive market, which have been heavily impacted by the Covid-19 health pandemic.

Following the announcement, automotive companies in Malaysia will have to release the updated price lists for their 2021 models, including the BMW M3 and M4 Competition, BMW 530i M Sport Dark Shadow Edition, Lexus LM 350, and the Toyota GR Yaris – all of which only slated for delivery beginning next year.

All the new price lists will be updated accordingly here as soon as they are announced, but for now, the SST-exempted price lists of for car brands in Malaysia can be found here.


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