KUALA LUMPUR: Malaysia has fully waived the sales tax for locally-assembled vehicles for a six month period to help the local automotive sector recover from the Covid-19 crisis.
Under the Economic Recovery Plan or Penjana, the government also reduced the sales tax for fully-imported vehicles by 50 per cent from June till December this year.
Prime Minister Tan Sri Muhyiddin Yassin said the move was aimed at spurring the growth of the local automotive industry.
"The government has agreed to exempt sales tax up to 100 per cent for completely-knocked down passenger vehicles and 50 per cent on completely built up cars from June 15, 2020 to December 31, 2020," he said in a special televised address after announcing the short-term Economic Recovery Plan today.
Muhyiddin said the government had allocated a total of RM35 billion for 40 initiatives via three thrusts, empowering the people, propelling businesses, and stimulating the economy.