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Muhyiddin: 100% Sales Tax Exemption for Locally-assembled Car & 50% on Fully-imported Car

In our Prime Minister, Tan Sri Muhyiddin Yassin’s speech on live telecast about short-term recovery plan just now, he announced that there will be measures to help the automotive sector, specifically in boosting new car sales.

The plan involves a 100% sales tax exemption on CKD locally-assembled models and 50% on CBU fully-imported models starting from June 15 until the December 31, 2020.

Credit : Glassdoor

Sales tax rate for both CKD and CBU passenger vehicles is currently 10%, so for CKD this will mean the complete removal of the 10% rate, while for CBU it will be halved.

Beside automotive sector, travel sector which is badly hit by Covid-19 pandemic will be given tax exemption (Tourism tax) too from 1 Jul 2020 to 30 Jun 2021.

Credit : Agoda

While for the accommodation premise operators including hotels, inns, lodging house, service apartment, homestay and other similar establishment are exempted from charging Service Tax on taxable services provided from 1 Sep 2020 to 30 Jun 2021.



Posted by China Press (中國報) on Jumaat, 5 Jun 2020

Source: China Press