Sarawak state government has added 5% state sales tax on tyres

While most of us are still bracing ourselves for the eventual increase in prices of cars - June 2020 for imported (CBU) cars and January 2021 for locally-assembled (CKD) cars - WapCar.my has just learned that the Sarawak state government has already imposed an additional state sales tax on tyres since 1-January 2020.

A memo sighted by WapCar.my, issued by Sarawak’s Jabatan Perbendaharaan Negeri dated 30-January 2020, stated that the new state sales for imported tyres was not only effective immediately, but backdated to 1-January 2020.

Note that imported tyres in this context are defined as tyres not produced in Sarawak, which basically means all motor vehicle tyres.

Passenger car tyres imported as loose items (typically by tyre dealers), will be taxed 5 percent of its value. The 5 percent state sales tax is applied on top of the Federal government’s 10 percent sales tax.

As for cars imported into Sarawak, which essentially means every car since Sarawak doesn’t produce cars, each tyre (including spare tyre) will be taxed RM 10 per piece.

Motorcycle tyres will be taxed between RM 2 to RM 20, depending on engine capacity. Tyres used by heavy commercial vehicles between RM 20 to RM 75 per piece.

Even bicycles and wheel barrows are not spared! These will be taxed RM 1 per tyre.