KUALA LUMPUR (June 21): The government's decision to allow buyers to continue enjoying the sales tax exemption as long as they book their vehicles by June 30 is a relief for both the automotive industry and consumers, said Perusahaan Otomobil Kedua Sdn Bhd (Perodua).

Perodua president and chief executive officer Datuk Zainal Abidin Ahmad said local automotive suppliers are facing various problems, ranging from the lingering impact of Covid-19 to shortages of component parts and manpower.

“These issues are currently being addressed as Perodua and our suppliers are finding solutions and this registration extension will give us much needed room to overcome these issues.

“We sincerely thank the government for this announcement as it gives the industry and the market breathing room to meet consumer demand, while at the same time gives the players time to overcome various issues that are affecting the industry,” Zainal Abidin said in a statement on Tuesday (June 21).

The Ministry of Finance said on Monday that vehicle bookings made up to June 30 will still enjoy the sales tax exemption initiative, as long as their vehicles are registered with the Road Transport Department system by March 31, 2023.

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz had explained that a total of 264,000 vehicles booked during the exemption period are still being installed and cannot be supplied to the buyers in the wake of disruptions to the global supply chain.

Tengku Zafrul said that in line with the opening of the economy, the automotive sector has returned to operations but at the same time, the world is also facing a shortage of semiconductor microchips which are widely used across several industries, including the automotive industry.

Meanwhile, Zainal Abidin said for Perodua's customers, this announcement gives them a much needed reassurance that they would be able to enjoy the sales tax exemption incentive that has boosted the industry since the year 2020.

“To date, we have significant outstanding orders which we are working to fulfill. We appreciate our customers’ patience in this regard,” he added.

On deliveries so far, Zainal Abidin said Perodua has registered 106,179 vehicles between January and May, which is 10% more than the 96,281 units registered in the same period last year.

In terms of models, the Perodua Myvi is the most popular with 31,689 units registered in the first five months of this year, followed by the Perodua Axia at 24,024 units and the Perodua Bezza at 23,336 units.

Tengku Zafrul, in announcing last week that the government was studying whether to extend the exemption for the tax it granted for the purchase of new vehicles, pointed out that Putrajaya had lost RM4.8 billion in tax collection due to the waiver.

He said the tax loss was considered "big" and was money that the government could have used to help the rakyat in the current challenging economic situation.

The exemption, first granted for six months in June 2020 to mitigate the effects of the first movement control order, had been extended to June 30, 2021, and then Dec 31, 2021, and subsequently June 30 this year.

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