Is a participant who
buys a second-hand local car eligible for tax exemptions?
Second hand cars are transacted on a willing buyer, willing seller basis and the government do not
levy any sales tax and excise duty on such transactions. As such tax exemptions do not arise.
However, second hand cars which are imported are subject to sales tax and import duty at the point
If I had a car accident and as a result I need to change
the car, do I have to pay back the tax exemptions?
i. If the car is repaired and sold it will be subject to the applicable tax/duty according to the
ii. If car is written off, taxes will be waived.
iii. If the participant wishes to buy another car, their application will be processed on the merit
of each case. Under normal circumstances a participant of this program is allowed tax exemption for
a car on a one time basis.
When can I sell the car, which has been given all the tax
Cars that have been exempted from taxes and duties under this program can be sold or its ownership
transferred provided the prevailing taxes and duties on the car have been paid prior to the
transaction. However, for imported cars the condition stipulated in the AP should be complied
before any sale or transfer can be permitted.