The 56th GST Council meeting has approved a major restructuring of tax rates, with a direct and significant impact on the automotive sector. This new structure is set to take effect on the first day of Navratri, September 22, 2025 The Council has approved a reduction in the GST rate from 28% to 18% on a wide range of vehicles, including: ● ​Petrol & Petrol Hybrid, LPG, CNG Cars (not exceeding 1200 cc & 4000mm) ● ​Diesel & Diesel Hybrid Cars (not exceeding 1500 cc & 4000mm) ● ​3 Wheeled Vehicles

The government has high hopes that the Inland Revenue Board (IRB) is able to achieve its tax collection target of RM127 billion this year, as well as the direct tax collection target of RM143.9 billion for 2021, said Tengku Datuk Seri Zafrul Abdul Aziz. The Finance Minister said that during the Inland Revenue Board (IRB)’s Innovation and Integrity Day celebrations on Thursday, adding that the role and function of the IRB is very important to ensure that tax collection is always at the optimum le