Penjana economic package: No sales tax on locally-assembled cars purchased between June and end-December

KUALA LUMPUR (June 5): The 10% sales tax on complete knock down (CKD) passenger vehicles will be waived while the tax on completely built-up (CBU) passenger vehicles will be halved to 5%, said Prime Minister Tan Sri Muhyiddin Yassin.

The new rates are applicable for purchases made from June 15, 2020 to Dec 31, 2020, he said in a live address this afternoon announcing the RM35 billion Penjana economic package which involves some 40 initiatives to spur the economy.

To stimulate the property sector, the Government has brought back the Home Ownership Campaign, which offers a stamp duty exemption for the Memorandum of Transfer (MoT) on the first RM1 million of a property’s value, and 100% stamp duty exemption for the financing agreement.

The exemption is applicable for properties priced from RM300,000 to RM2.5 million, with SPAs inked between June 1, 2020 to May 31, 2021, provided if the developer offers a minimum discount of 10%.

Meanwhile, Malaysians are also exempted from paying real property gains tax for disposal of up to three properties between June 1, 2020 and Dec 31, 2021.

In the tourism sector, tourism tax is now exempted from July 1, 2020 to June 30, 2021, whereas tax exemptions of RM1,000 on domestic holiday expenses have also been extended to Dec 31, 2020.

Meanwhile, the Government is also introducing the “Shop Malaysia Online” campaign to spur e-commerce spending.

It will pump in RM70 million to be matched by a similar amount by e-commerce platforms to generate promotions and discounts.

The Government also announced export duty exemption for crude palm oil (CPO), crude palm kernel oil and processed palm kernel oil from July 1, 2020 to December 31, 2020.

Additionally, the Government is also giving tax exemption of up to RM5,000 per employee for employers who purchase products such as mobile phones and laptops for their staff.

Stay safe. Keep updated on the latest news at www.EdgeProp.my 

Click here for more property stories