KUALA LUMPUR (June 5): Carmaker UMW Toyota Motor Sdn Bhd (UMWT) has lauded the government’s new incentive on the sales tax exemption for new car purchases “to promote the growth of the country's automotive industry” and to offset the impact of the Covid-19 pandemic
In a televised broadcast on the nation's short-term economic recovery plan, Prime Minister Tan Sri Muhyiddin Yassin said the government will be granting a 100% sales tax exemption for the locally-assembled CKD (completely knocked-down) models and 50% for imported CBU (completely built-up) models from June 15 to Dec 31.
“This is indeed good news for the auto industry and we are grateful to the Government for assisting this sector. The full savings will be passed on to customers and we expect that the reduced prices will help to revitalize the automotive industry,” said UMWT President Ravindran K in a statement, adding the company already has new models planned for launch this year.
“With the tax exemptions, we will be making the relevant adjustments to the retail prices of all our models and apply them by June 15,” he added.
UMWT deputy chairman Akio Takeyama said the Malaysian auto industry, like those in other countries, has been greatly affected by the long period of inactivity during the Movement Control Order (MCO) period.
“Apart from lost sales and production, there is also consumer sentiment which is uncertain of the future. Therefore, we appreciate the support from the government to help boost the industry,” Takeyama added.
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