Tax Exemption for the Sale of New Vehicles Could Be Extended in Malaysia
The Malaysian Government is contemplating an extension of the tax exemption for new vehicles in a bid to assist the automotive industry.
Many industries have struggled during the Covid-19 pandemic. The automotive industry was one of them that faced multiple challenges during the lockdown period. A series of stimulus packages were introduced by the Government to aid with the economic recovery. One of these measures is a proposed extension period for tax exemption on the sale of new vehicles.
Extending Beyond the 30 June Deadline
The Government has been considering the proposal to push the initial 30 June deadline. Vehicle delivery delays were disrupting the global supply chain. The automotive industry is also experiencing a shortage of chips. By extending the tax exemption deadline, potential car buyers could be enticed. A decision on the matter will be announced soon.
There have been calls for the Road Transport Department (JPJ) to also consider facilitating same day delivery for used cars. This is provided the loan is approved. JPJ is also being urged to bring the road tax down by 75% for any vehicle that is more than 15 years old. Vehicles more than 10 years old and five years old should be given a reduction of 50% and 25% respectively.
Continued initiatives are needed to aid with economic recovery. The matter must be looked at holistically to ensure an outcome that benefits the majority of those involved. Options are also being explored for how best to digitise JPJ processes so that more core services can be conducted online.
The Transport Ministry welcomes all feedback and maintains its open dialogue approach to ensure the people can be provided with the best services. The Ministry launched its automated driving test and training system, and more services will soon be available online to further improve its service efficiency.
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