MAA: Please extend SST exemption to end-2022, give time to manufacturers to clear backlog

The ongoing microchip shortage may have been disrupting the supply chain in the automotive industry, causing lengthy delays in new car deliveries,

For many customers, it's not possible for them to get their new cars before 30-June, the current expiry date for the sales tax exemption. 

In response to that, the Malaysian Automotive Association (MAA) has appealed to the government to extend the vehicle sales tax exemption.

According to MAA president Datuk Aishah Ahmad, “The MAA has appealed to the Finance Ministry to extend the sales tax exemption. But so far, we have not received any feedback,” she told StarBiz.

She added that the MAA is hoping that the sales tax exemption will be extended till the end of 2022, as it would boost car sales, as well as give car manufacturers sufficient time to clear their backlog of orders.

Also Read: MAA: 600k cars sales target for 2022, back to pre-Covid days?

With less than 2 months left for the sales tax exemption, most car manufacturers are struggling to fulfil their outstanding orders, which is further compounded by the ongoing microchip shortage. For example, if you book a Toyota Corolla Cross Hybrid today, you won’t be to get your brand-new crossover until September, thus missing out on the SST-free price.

Also Read: Here are the post-SST prices for Toyota Corolla Cross – circa RM 3k – RM 5k increase

“Sales numbers will hopefully surge in May and June, as the sales tax exemption is ending on June 30,” she added.

The sales tax exemption was first announced in June 2020 as a way to boost car sales during the lockdown. It was extended a couple of times over the past 2 years, with the most recent extension being 30-June 2022.

During the last quarter, new vehicle sales in Malaysia increased by almost 13 percent, hitting the MAA’s target and is on track for their 600k total industry volume (TIV) goal.

Also Read: Malaysia Q1 2022 vehicle sales: Almost 13% growth in overall sales, big gains for Toyota, Nissan, Honda