Four months left for Malaysians to enjoy car sales tax exemption incentive

KUALA LUMPUR – There are four months left for Malaysians to buy locally made or imported cars and enjoy tax exemption incentives, said Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the Finance Ministry under Budget 2022 had extended the car sales tax incentive exemption period until June 30, 2022 to encourage car ownership, stimulate local economic growth and drive the development momentum of the automotive sector.

“Under Budget 2022, the car sales tax exemption remains the same as before, that is 100% sales tax exemption on locally assembled passenger cars (CKD).

“Meanwhile, a sales tax exemption of 50% is given to foreign assembled passenger vehicles (CBUs) including MPVs and SUVs, including new imported CBUs and used imported CBUs,” he said in the Laporan Kewangan Rakyat released on February 25.

Meanwhile, he said the government had channelled a total of RM20.355 billion to 357,530 employers through the Wage Subsidy Programme (PSU) to maintain the employment of 2,953,820 local workers in an effort to reduce the unemployment rate among Malaysian workers.

Tengku Zafrul said that as of February 11, 2022, a total of RM17.44 million had been channelled to 1,744 employers to continue operating and maintain the employment of 29,065 workers.

More information can be found here.

For the Indian Community Entrepreneur Development Scheme (SPUMI), as of February 18, RM21.72 million has been successfully channelled to 902 micro, small and medium enterprises (MSMEs).

The scheme is a strategic government initiative under TEKUN to help the Indian community improve the economy through involvement in business and entrepreneurship.

“Those in the Indian community who want to venture into business and entrepreneurship as well as those who want to further develop their existing business, the value of financing channelled is from RM1,000 to RM100,000 for each entrepreneur according to qualifications,” he said.

The repayment period of the financing is up to 120 months (10 years) at a rate of 4% per annum. This programme has been given an allocation of RM20 million, of which RM5 million is from Budget 2021 while an additional RM15 million is from the PERMAI Package and is continued for the year 2022.

More information can be found here.

Meanwhile, under the National Economic Recovery Plan (PENJANA), the government has also allocated RM700 million to assist and encourage SMEs and MTCs towards the digitalisation of operations and trade channels.

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