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.
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.
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.
Source: China Press