The exemption of the Sales and Service Tax – announced by the government as a stimulus for the automotive industry after the COVID-19 slowdown – has seen car prices drop between 2 and 6 percent, making this current time the best time to buy a brand new vehicle.
Among the incentives to assist the automotive industries are a 100% sales tax exemption on new completely-knocked-down (CKD) vehicles and a 50% exemption for completely-built-up (CBU) vehicles until the end of the year.
Depending on the vehicle, this stimulus package has resulted in price drops of a few hundred ringgit, to nearly RM45k for certain premium and performance cars. However, the two biggest contributors to the overall Total Industry Volume (TIV) are Proton and Perodua, so we thought it would be wise to compare the price reductions (depending on model) between our two local carmakers to see just how much buyers are benefiting from the tax holiday.
From the data, we see a reduction of between 1 to 6 percent depending on models and variants. The SST tax exemptions are only applicable to passenger vehicles, inclusive of MPVs and SUVs, but does not apply for pickup trucks such as the Toyota Hilux, Ford Ranger, and Mitsubishi Triton.
Was the reduction significant enough for you to buy a brand new Proton or Perodua?