SST discount on cars has ended in Malaysia

SST discount on cars has ended in Malaysia

With the SST discount ending, how will new car sales fare?

KUALA LUMPUR: The announcement was made just yesterday and already there is a lot of negative social media attention on this retirement of the sales tax discount that has been in ‘play’ for the past 24 months (it was first announced in June 2020 to revive the fledgling auto industry).

Having the sales tax discount has cost the Malaysian government more than RM4.7 billion in revenue and this has benefited more the middle class and well-to-do Malaysians rather than the lower middle class that needs the savings when buying a basic vehicle.

Cars

From June 2020 till today, Malaysians have bought more than 868k passenger vehicles and this is proof that there is still plenty of savings held by the upper-income earners.

We did mention in the past week that the Malaysian government's efforts to boost vehicle sales was very welcomed and the SST discount did just that, however, it is time to restore the SST on locally assembled cars (the discount was 100 percent) and fully imported cars, including grey market, reconditioned cars from private approved permit holders (discount was 50 percent) as right now and in the next 6 to 9 months there is a long waiting list for almost all new cars and only bookings made and in place before and on 30th June 2022 will be eligible for the current SST discount.

2022 Perodua Alza

So, if you have not placed a booking for the soon-to-launch Perodua Alza or the just previewed Honda HR-V, you will need to make a decision in the next few days to buy or not.

Meanwhile, before you check your bank balance and the used value of your current car, please note that any booking you make this month for a very popular model like the 2022 Alza or the 2022 HR-V, you might only be able to take ownership in early 2023 which is 6 months away and will also mean that your ‘new’ car will immediately be ‘one-year-old’ on the registration document.

2022 Honda HR-V

To save some money with the given SST discount of about RM 4,000 for the latest Honda HR-V you might be losing more than RM 4,000 on depreciation on your current car as the date of sale will be in 2023, a year older.

Therefore, before you rush out and book a new SST discounted popular car model next week, please do a detailed calculation of your possible loss on your used car sale and the waiting time which will extend to 2023. 

Also read: 5 new cars many Malaysians are waiting for

Daniel Fernandez

Daniel Fernandez

22 years as a motoring journalist starting with Asian Auto magazine as writer for one year and the following year editor for 10 years. 12 years as a online media owner, DSF.my 10 years on radio with very own auto news and reviews radio show starting with LITEFM for 7 years and the last three years with BFM.

Read Full Bio

Sell your car at the best price

Verified and genuine buyers Verified and genuine buyers
Free listing Free listing
List your car

You might also be interested in

  • News
  • Featured Stories
  • Upcoming
  • Proton e.MAS 7 ev
    Proton e.MAS 7
    RM 120,000 Expected Price Kuala Lumpur
    Expected Launch Dec, 2024 Alert Me When Launched
  • Toyota Yaris Cross
    Toyota Yaris Cross
    RM 130,400 Expected Price Kuala Lumpur
    Expected Launch Dec, 2024 Alert Me When Launched
  • Toyota Hilux Champ
    Toyota Hilux Champ
    RM 59,000 Expected Price Kuala Lumpur
    Expected Launch Dec, 2024 Alert Me When Launched
  • Perodua EM-O ev
    Perodua EM-O
    Price coming soon
    Expected Launch Dec, 2024 Alert Me When Launched
  • Kia EV3 ev
    Kia EV3
    Price coming soon
    Expected Launch Dec, 2024 Alert Me When Launched

Latest Car Videos on Zigwheels

Zigwheels
  • 2024 MG5 Review - If you ignore the noise, this thing is actually A-OK!
    2024 MG5 Review - If you ignore the noise, this thing is actually A-OK!
    21 Nov, 2024 .
  • Why Jaecoo J5 could be Malaysia’s next big SUV sensation!
    Why Jaecoo J5 could be Malaysia’s next big SUV sensation!
    14 Nov, 2024 .
  • ZEEKR X and ZEEKR 009 now open for booking in Malaysia
    ZEEKR X and ZEEKR 009 now open for booking in Malaysia
    15 Oct, 2024 .
  • 2024 smart#3 Pro review - The ideal daily?
    2024 smart#3 Pro review - The ideal daily?
    15 Oct, 2024 .
  • BMW i5 REALLY the Best EV for City Driving? Let's find out
    BMW i5 REALLY the Best EV for City Driving? Let's find out
    15 Oct, 2024 .
  • GMW Haval H6 | Review
    GMW Haval H6 | Review
    27 Sep, 2024 .
  • Leapmotor C10 Previewed in Malaysia
    Leapmotor C10 Previewed in Malaysia
    27 Sep, 2024 .
  • 2024 Mitsubishi Xpander Facelift is here! Starting from RM99,980
    2024 Mitsubishi Xpander Facelift is here! Starting from RM99,980
    23 Sep, 2024 .
  • 2024 Mercedes-Benz E-Class and GLC350e
    2024 Mercedes-Benz E-Class and GLC350e
    23 Sep, 2024 .
  • BYD’s got some exciting stuff going on at Sime Darby Motor's AutoMania this weekend!
    BYD’s got some exciting stuff going on at Sime Darby Motor's AutoMania this weekend!
    23 Sep, 2024 .
Watch Car Videos

Compare

You can add 3 variants maximum*