The SST exemption was first announced in June 2020 and extended twice, to June 30, 2021, and then December 31, 2021.

In a statement, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said 868,422 vehicles were sold throughout the period, which amounted to a tax exemption worth RM4.7 billion.

“With the opening of the economic sector, the automotive industry has returned to its usual operations.


“However, there are still a number of requests that could not be met due to the global supply chain disruptions.

“Following this problem, a total of 264,000 units of vehicles booked during this exemption period have yet to complete installation and cannot be supplied to buyers,” he said.

Therefore, the government has extended the registration period for vehicles bought during the SST exemption until March 31, 2023, to enable car owners to enjoy the tax incentives.

“The extension of the registration period is a midpoint solution to balance the interests of consumers and the country’s tax revenue that needs to be increased post-pandemic.

“This is to ensure the wellbeing of the people and the country’s economy continues to be preserved,” he added.

Car manufacturers want an SST extension but is it worth the effort?

For the past few weeks, the government of Malaysia has been pushed hard by some car manufacturers and also the Malaysian Automotive Association to grant an extension to the Sales Tax exemption on all new cars (SST). 

This move has already cost the Malaysian tax department billions of Ringgits in the previous year in lost revenue and at this time, this is much-needed income for the government to keep public programs and subsidies for the poor running. 

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