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It’s confirmed – the SST exemption for passenger cars in Malaysia will end as scheduled on June 30, 2022. However, the silver lining is that the government has taken into consideration the severe stock issues currently faced by the automotive industry and has allowed the SST exemption to apply for any car booked before the deadline as long as it is registered before 31 March 2023.
UPDATE: We have reached out to some dealers and principals to ask what constitutes a booking, and have added the definition in the story, below.
Thanks to the combined after effects of the pandemic, war and chip shortages, there are many cars with waiting lists of a few months in Malaysia. This will mean someone who booked a car way back in January this year but has yet to receive delivery of the car will still be able to enjoy SST exemption as long as the stock arrives and is registered before the March 31, 2023 deadline. According to MOF, there are currently a total of 264,000 undelivered bookings so far – that’s a lot!
For cars launched from July 2022 onwards though, no luck! Do pre-launch bookings qualify as long as it is before the June 30, 2022 deadline? What exactly defines a booking that qualifies for the exemption? We managed to find out what constitutes a “booking” in the eyes of car companies – while this is not exhaustive, it should be representative of how things work for the most.
For Perodua, a booking refers to a RM100 deposit and details from a copy of your myKad. The dealer we reached out to said that, based on the wording of the press release, as long as the name is in the Perodua system by June 30, the buyer is entitled to the exemption.
For Honda, the company’s definition of a booking is a deposit not more than 1% of the vehicle price, and that it needs to be entered into the system before it is considered as such. There is no long lead time for this, which means if a buyer comes in to book a vehicle the booking can be entered into the system at that point.
There’s a lot more that needs to be asked, and answered with regards to the entire process, and we understand that car companies are in the midst of requesting further clarity on the matter with the ministry. We will update on this when details become known.
The SST exemption was first announced in June 5, 2020 as part of the Penjana stimulus package to mitigate the effects of the first movement control order, which took place from March that year. Originally scheduled to end on December 31 that year, the SST exemption was extended at the last moment to June 30, 2021, and then again to December 31, 2021. A third extension, which is the current one, was announced during the tabling of Budget 2022.
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