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Extension of Sales Tax Exemption for the Purchase of Locally Assembled Bus

Updated: Nov 9, 2022

To Download Budget 2023 Speech and some other related publications -

Current Position

A sales tax exemption of 10% on the purchase of buses, including locally installed air conditioning, is given to eligible bus operators such as:

  1. School Buses,

  2. Stage Buses,

  3. Express Buses,

  4. Excursion Buses; and

  5. Employee Buses.

The sales tax exemption is effective from 1 January 2021 to 31 December 2022.


To reduce the operating costs and assist the bus operators during the transition phase to endemic, it is proposed sales tax exemption be extended for a period of 2 years

Effective Date

For applications received by the Ministry of Finance from 1 January 2023 until 31 December 2024.

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