SCT exemption: MAA requested extension due to backlog of orders due to chip shortage, but not sure if that will happen

The Malaysian Automobile Association (MAA) held a question and answer session after its annual meeting today. One of the questions raised by members of the media is whether the government is considering an expansion sales and service tax (SST) exemptionscheduled to end on June 30.

Chairman Datuk Aishah Ahmad said the organization is in the process of drafting an appeal letter to ask the Ministry of Finance for an extension, which will be sent after the AGM. “We haven’t sent it yet but it will be soon,” she said. “The results, we still don’t know. We want it to be extended but we really don’t know if the government will accept it. It really depends on the government. ”

Aishah added that global semiconductor shortage hindered car companies’ ability to fulfill backlog orders, so an extension was needed. “We will give the reason for requesting an extension, [which is] microchip problems and all that. A lot of our members are still unable to deliver on orders they have received because of this chip issue.”

The SCT exemption has been extended three times since Prime Minister Tan Sri Muhyiddin Yassin announced back on June 5, 2020. Originally scheduled to end on December 31 of that year, the deadline was pushed back at the last moment until June 30, 2021. Another six-month extension is launched in Mayfollowed by a third is confirmed during the Budget 2022 review in October.

After many extensions, it is unlikely that the government will continue to exempt, 100% for locally assembled CKD models and 50% for CBU imported models. Therefore, if you are on the verge of buying a new car, you should probably get it now (registration must be completed by July 31 to be eligible) instead of waiting a long time. another savior.