Parts for CKD vehicles exempted from SST

PETALING JAYA: Only various car parts, such as components and accessories, for Completely Knocked Down (CKD) assembled vehicles will be exempted from Sales and Services Tax (SST) system.

Customs Department Director-General Datuk Seri Subromaniam Tholasy was referring to news about passenger motor vehicles being among the items that will be exempted from SST went viral.

"The Customs Department would like to give clarification on this matter. Passenger motor vehicles were actually proposed to be subjected with the SST. However, there are some reports misinterpreted the list without referring to the Customs Department.

"Based on our understanding of the proposed list released today, this exemption only applies to CKD assembled vehicles and components or accessories to assemble the CKD vehicles," he said in a statement today.

He said vehicles, assembled from imported CKD components, will be subjected to the SST.