Customs denies passenger vehicles not subjected to sales tax

KUALA LUMPUR: The Royal Malaysian Customs Department (JKDM) has issued a statement clarifying reports over the misinterpretation of the exemption list that was uploaded on its website.

Its Director-General, Datuk Seri T. Subromaniam said that goods exempted from the sales tax on the exemption list are only for components for completely knocked down (CKD) vehicles.

"When the vehicles are assembled from the imported CKD components, the completed vehicles are subjected to sales tax," he said.

Subromaniam said the Customs would like to clarify that sales tax has been proposed to be imposed on passenger vehicles.

However, some parties have misinterpreted the list (list of components exempted from sales tax that was released on the Customs website today) that went viral without referring to the department.

These components referred to the proposed tariff codes to be exempted from sales tax upon the implementation of the Sales and Service Tax (SST) on Sept 1, 2018.

"With this explanation, the Customs hope that the issue is closed and does not confuse the rakyat and consumers," he said. — Bernama