UMW Toyota Motor welcomes car sales tax exemption
- Advertisement -
UMW Toyota Motor (UMWT) has said it welcomes the sales tax incentive that was just announced by prime minister Tan Sri Muhyiddin Yassin, which will see sales tax for CKD cars reduced by 100%, while CBU cars get a 50% reduction.
Company president Ravindran K said: “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 revitalise the automotive industry.”
“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. Based on the current sales and services tax (SST), the sales tax for CKD and CBU passenger vehicles are 10%, which means prices for cars sold from June until December 31, 2020 will be lower.
UMWT deputy chairman, Akio Takeyama added “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.”