Pekema Sarawak seeks 50% sales tax cut

KUCHING: The Association of Malay Importers and Traders of Motor Vehicles Malaysia (Pekema) Sarawak has asked the state government to slash the sales tax on vehicles by 50% to reduce mounting stock of unsold vehicles in the state.

Pekema Sarawak president Tan Sri Abang Khalid Abang Marzuki said almost all members of the association in the state were facing the problem of huge stock of unsold vehicles involving imported vehicles.

“If the tax exemption could include these vehicles, I believe the stock can be sold, thereby reducing the existing stock of vehicles and thus, Pekema members can re-import their vehicles,” he said in a statement here.

Abang Khalid said with this tax exemption, more affordable vehicle prices could be offered to buyers and further boost the local automotive industry.

“Pekema Sarawak hopes that the government can introduce more specific tax exemptions that can impact businesses, including incentives in the form of reduction in import and excise duties,” he said.

The federal government has fully waived the sales tax for locally-assembled vehicles for a six-month period to help the local automotive sector recover from Covid-19.

Under the National Economic Recovery Plan, the government also reduced the sales tax for fully-imported vehicles by 50% from June until December this year. — Bernama

“If the tax exemption could include these vehicles, I believe the stock can be sold...” Tan Sri Abang Khalid Abang Marzuki