The Proton Vendors Association (PVA) and Kelab Vendor Perodua (KVP) are pushing for the excise duty for cars, MPVs and SUVs to be set at the same level. According to the two associations, the excise duty for MPVs and SUVs are currently lower than those of passenger cars.
They say the government will benefit from such a move because of higher excise duty income, and the related authorities will also benefit from the simplicity of multiple vehicle types being assigned a single tax category. They say the increased duties will encourage automakers to locally assemble their MPVs and SUVs, and for those who are already assembling them locally, it will encourage a higher use of local content.
We all know that both Proton and Perodua will be introducing MPV vehicles in 2009. This push for a single excise duty will definitely benefit the Proton MPV and Perodua MPV as the percentage of local content in the two vehicles will be higher than locally assembled or ASEAN-imported foreign makes.
Also in the memorandum sent to the Ministry of International Trade and Industry is the recommendation of streamlining the road tax prices for both petrol and diesel vehicles to promote the use of fuel efficient diesel vehicles, a proposal to scrap import duties on automotive-related raw materials, and a proposal for a vehicle end of life policy.
Yup, in times where fuel prices are so high, they’re still trying to get the government to take away that 25 year old car that you’re forced to use because your monthly fuel expenditure is too high for you to afford the loan repayments of a new car.