MoF: No extension for SST cut, grace period to register your car extended to 31 March 2023

Despite calls from multiple groups to extend the sales tax (SST) exemption deadline beyond 30-June-2022, the Ministry of Finance (MoF) has ultimately decided not to do so. Instead, they have extended the grace period for car buyers to register their cars to 31-March-2023, applicable only to those who have booked their cars before 30-June 2022.

Back in March, MoF introduced a grace period of one month (up to 31-July-2022) for car dealers to register the new cars to qualify for the SST exemption. 

Also read: MAA: Price hike inevitable as delays in car production continues, requests SST extension

However, due to the supply shortage caused by the lack of parts and semiconductor chips, many car buyers will not be able to register their new cars before the July deadline. Hence, the government has agreed to extend the grace period.

According to a statement, MoF estimates that up to 264,000 cars that have been sold before the SST deadline have yet to complete assembly and will not be able to get registered by July.

Also read: Used car shortage alert! Second hand car dealers are running low on stock to sell

MoF is calling the decision a midpoint solution to help balance consumer interest and national tax revenues which needs to be re-enhanced post-pandemic to ensure the welfare of the people and the country’s economic well-being.

According to MoF, since the introduction of the SST exemption on 15-June-2020, a total of 868,422 vehicles were sold, which means that Malaysians have saved at least RM 4.7 billion on the tax exemption.

Also read: Can't get your SST-exempted car before June 2022? MAA confirms one month grace period until July