Budget 2022: MoF confirms extension of SST exemption/discount until June 2022

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz has confirmed that the current sales tax (SST) exemption for locally-assembled passenger cars and 50 percent discount for imported new and reconditioned passenger cars, will be extended to June 2022.

The current SST exemption / discount was meant to boost the slumping local automotive industry and was originally scheduled to expire on 31-December 2021.

Although the sales tax cut / discount did boost new car sales last year, much of the momentum gained has been lost due to the global shortage in semiconductor parts and many buyers of popular models like the Perodua Myvi and Proton X50 have been waiting for more than 6 months for their cars.

If these buyers don't get to register their new cars by 31-December 2021, they won't qualify for the SST exemption / discount. The extension offers some respite.

Also read: Budget 2022: SST cut / discount for new cars likely to be extended