Cars exempted from SST according to report [UPDATED 09.40pm]

By ahmadzulizwan, 19 July 2018

It appears that new car prices will not be going up at all, according to a report by thesundaily as it will be exempted from SST (Sales and Service Tax). According to the statement, the exempted list includes sedans, four-wheel drives, station wagons, and race cars.

On top of that, car parts are also free from SST and that includes accessories, fuel pumps, and fuel-cut off valves (that’s a very random list of parts, but it’s what the report says).

Buyers had a good time choosing which cars to buy during the zero-rated GST period recently, with Honda even registering 20,000 bookings in June alone. That tax holiday is believed to end in September when the SST system is implemented. Well, looks like the tax holiday has just gotten longer.

UPDATE (09.40pm):

Well, that was quick, apparently what the Customs Department meant was that only components and accessories for CKD (Completely Knocked-Down) vehicles will be exempted from SST.

"The Customs Department would like to give clarification on this matter. Passenger motor vehicles were actually proposed to be subjected with the SST. However, there are some reports misinterpreted the list without referring to the Customs Department."

"Based on our understanding of the proposed list released today, this exemption only applies to CKD assembled vehicles and components or accessories to assemble the CKD vehicles," Customs Department Director-General Datuk Seri Subromaniam Tholasysaid in a statement today.

Thus, vehicles assembled from imported components are subject to the Sales and Service Tax. That's a long list of cars. So yeah, cars will be more expensive once the (old) new tax is in effect.