The Malaysian Finance Ministry has granted an exemption of the Sales and Service Tax (SST) for the purchase of locally assembled buses to bus operators with valid permits. The decision was made after the Bus Operators Association submitted their appeals to the ministry some time back.

Finance Minister Lim Guan Eng said that “this will save bus operators about 10% from the burden of SST for the purchase of each bus priced between RM250000 and RM900000. To date, there are some 115 ready-to-install buses and 360 semi-finished buses that have not been released from the local assembly plants.”

He further added that bus operators needed to rely on new buses to provide comfortable and safe services to the public, especially school children and those from the low income bracket. The Ministry came to the decision to reduce the burden of bus operators as well as to enable bus operators to improve the quality and service of their buses.