With the recent announcement of the tax exemption initiatives, UMW Toyota Motor Sdn Bhd (UMWT) extended its hands to welcome the announcement made by Prime Minister. The incentives are part of the Government’s Short-Term Economic Recovery Plan to offset the impact of the COVID-19 pandemic.
Toyota Malaysia and several big automotive names in the country welcome the Government’s Short Term Economic Recovery Plan to offset the impact of the pandemic and 3-month long quarantine period. Toyota announced that between 15 June – 31 December, there is sales tax exemption for customers buying a new car. This incentive is considered a big break for those looking to purschase a new ride, especially in these financially-strapped times.
With the tax exemption scheme, locally-assembled or CKD (completely knocked-down) models come with 100 percent sales tax exemption. On the other hand, imported units or CBU (completely built-up) models get 50 percent tax reduction.
Toyota has plans to introduced new models for the remainder of the year. With the exemptions, all Toyota models will see relevant price adjustments on retail prices by 15 June.
UMW Toyota Motor’s President K. Ravindran remarked, “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 revitalize the automotive industry.”
Recovery for the Automotive industry
The automotive industry has been one of the top three contributors to the domestic economy. With that in mind, the local government’s short term recovery plan initiative will not only boost customers’ confidence, but spark the best time to consider buying a new car. After all, the sales tax has always been the major factor in the jacked-up prices of cars in this country.
For auto brands, recovery in terms of sales and production is something they have to make up for and in a hurry. They have to fulfill orders prior to the MCO on 18 March and make sure production get back on track to meet demands.