PETALING JAYA: Car buyers will be able to enjoy an exemption on sales tax for a while longer, as the government extends the incentive by another six months.

       Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said the exemption will be extended until June 30 next year.

       “To reduce the cost of vehicle ownership, the Government will extend the 100% sales tax exemption on CKD (locally assembled) passenger vehicles and 50% on CBUs (imported) including MPVs and SUVs for six months until June 30, 2022,” said Tengku Zafrul in the Budget 2022 presentation.

       The exemption was introduced by the government in 2020 to drive sales in the automotive sector which was affected by the Covid-19 pandemic.