Wee: SST exemption benefits auto industry, extension depends on Finance Ministry

The automotive sales and service tax (SST) exemption scheme is coming to an end on 30-June 2022 and there are calls for it to be extended. However, the decision on extending SST is up to the Finance Ministry, says Transport Minister Datuk Seri Dr Wee Ka Siong.

Though he viewed the exemption as beneficial to the automotive industry, he understood that the Finance Ministry would have its own financial considerations to make.

“As a result, the automotive market, especially second-hand car businesses, were able to remain viable. Otherwise, it would have been difficult for the dealers to survive during the pandemic,” Wee told The Star.

Also read: Record high sales for used cars continues! Malaysians social distancing in second-hand cars?

He continues, “The incentive has helped to boost the economic sector and our recovery, and the Transport Ministry is able to see this through the transactions at the Road Transport Department (JPJ),”

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“However, we need to consider the country’s financial capabilities and for that, I will leave it to the discretion of the Finance Ministry,”

The SST exemption scheme was originally scheduled to end on 31-Dec 2020 but has been extended 3 times since. The scheme was originally a part of the Penjana stimulus package that was meant to lessen the effects of the pandemic.

Also read: Yes or No? Decision to extend SST exemption for new cars to be announced in 2 weeks

Wee also told the English daily that he would be sharing his thoughts on the matter with Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Also read: MoF dodges question on why Toyota Vellfire but not Proton X70 as official car

“I will discuss this when I meet him (Zafrul) soon. As the Transport Minister, I feel the exemption scheme has been a boon for businesses and car dealers. They were able to maintain their businesses and did not have to resort to getting rid of workers,”

“But whatever decision made by the Finance Ministry will be supported by the Transport Ministry, as we are part of the same government. It is a collective decision and responsibility,” Wee continues.

Also read: MoF: Safety and comfort also reasons behind switch from Proton Perdana to Toyota Vellfire

The Transport Minister said this following a launch event of the Atlas automotive operating system (OS). He also said that the Transport Ministry is also open to having more tech companies come up with new smart mobility solutions that would help elevate driving experiences for motorists.

The Atlas OS is led and developed locally by ACO Tech Sdn Bhd and runs on Android 10 platforms and above. The team is also behind the system that is used on Proton’s infotainment system.

Also read: With 70k users saying “Hi Proton”, meet the Malaysian team behind Proton’s GKUI system