You’ve read the full story on MITI’s announced import duty cuts for cars coming from Japan and Australia, now here’s the response from industry stakeholders Malay Vehicle Importers and Traders Association (Pekema) and the Malaysian Automotive Association (MAA). Proton’s official response was included in the original report.
Chairman of Pekema Datuk Zainuddin Abdul Rahman pointed out the obvious fact to The Malaysian Insider that the majority of Japanese branded cars on the road were either locally-assembled or imported from our Asean neighbours.
“The impact to the (domestic) market is small because only the import duty is abolished. The tax in Asean countries isn’t that high, only 5%,” he said, adding that MITI’s move will only do away with the 30% import duty, but not excise duty.
Excise duty, which can be anywhere between 60% and 105%, forms a significantly larger percentage sum in the scheme of things.
Zainuddin added that cars in Malaysia were considered cheap even without the dismantling of import tax. “Our cars are actually still cheap… however there will still be a drop (in price) even if by just a bit,” he said. “The structure of the proposed abolishment is still not clear… what’s certain is that it will not be implemented in the near future,” the “AP Holders Club” chairman continued.
The MAA welcomed the development, although its president Datuk Aishah Ahmad said that MITI’s move will not create a big impact. “At the moment, cars imported from Asean countries, including Thailand, are not subjected to import duty. This tax reduction only applies to the fully-imported cars from the two countries, which are usually luxury cars,” she told The Star.
“However, it is a good start towards making foreign cars more affordable to the public,” the long-time MAA head added, singling out “higher-end Mazda cars” as an example of the vehicles that will see a reduction in import duty.
His ‘cheap’ comparing point is refer to which country? Singapore? Thr are a lot of countries which the car price is way cheaper from what we are paying!
What is the mentality of these datuk datuk nowadays?
cheap ???!!! give me a break la…
Tok Kok diorang
Pekema members don’t work at all. They get free AP’s. It is easy to talk about cars being cheap. And we all know what the Pekema members do, 99% of them actually sell their APs to the Chinaman who sets up shop. The whole purpose of the AP system is defeated. The whole reason government started this AP system is to help the Bumiputeras penetrate the car market and to encourage them to personally set up businesses dealing with the imports of cars. MITI must do something about this. We, 28 million people are suffering subsidinsing these 100 over Pekema individuals. To add salt to injury, most of the Pekema members clock down the mileage of their cars. In the UK, a car is priced based on milegae and not year of make. So, a 2008 car with 20,000 KM is far more expensive then a 2012 car with 100,000KM. These AP cowboys buy high milegae cars, bring it to Malaysia, clock it down to 8000KM and sell it for a hefty profit. In the UK or Japan, any high mileage car is sold dirt cheap. Most of them are ex-rentals that have been trashed beyond believe. But the year of make still new. So, the AP cowboys buy them so cheap and sell them here in Malaysia for a huge profit each. Per car, nothing less than RM200,000 is made. And each AP cowboy gets hundreds of free AP’s from the government. And we, 28 million people suffer by subsidising their appetite for huge profit the illegal way ie clocking down the sppedometer.
Really no shame that Pekema has come out with the statement that cars are cheap. I also can say that if I don’t life a finger to work and get free APs.
To Paul Tan’s and readers
The above FAKE ‘Mat Global’ comments date 03/03 at 12.21 pm is not by me the TRUE Mat Global you used to come across my postings.
To the ‘identity thief’ – do be a gentleman in this highly regarded Auto Blog.
You can shoot me to the floor, but it is an idiot to adopt this ‘dirty tactics’ to smear my name and integrity with the ill-hearted and ungrateful outfit.
Most Pekema members also lie in the declarations. I have bought about 5 cars from different Pekema members in the past 10 years. When selling these cars, I ended up in big problems with the LHDN and Customs. Pekema members all underdeclared my cars by one year. For example, 2009 car, they say 2008 car. When I initiated a legal case and police report, initial investigation revealed that the Pekema member was related to the Menteri. Yes, all Pekema members are either son in law, sister in law, brother in law or cousin of some Menteri. So, I had to drop my case. So now you know, most of these Pekema members are big shots that got durian runtuh, free AP money. Who suffers? Its is you and me.
Tak malu ke, bangsa sendiri pun nak tipu. The majority of Malays work sometimes 2 jobs, hardly see our own family, just to make ends meet. And here, bangsa sendiri tipu kami. Still want to vote for BN?
It’s really dirt cheap, if you are one of them, who are getting free money in the pocket system (AP system). Even BMW 7 series, or S-class Brabus are dirt cheap.
By the way, we should ask them to earn the money themselves, and see how hard is it to get even RM5k a month, then let’s see what cars are dirt cheap. Most rakyat money are hard earn money, with lot’s of sweat and blood.
yang kaya bertambah kaya, yang miskin papa kedana or the rich gets richer the poor gets poorer. A policy for the rich
Yes, very cheap, our poor consumer life is dirt CHEAP!
Better to change your club chairman. He has caused about a few thousand votes for PKR in just one comment!
Let me rephrase for you. The the “AP Holders Club” chairman meant: “Our cars are still cheap in relevance to my payslip, which is more than 100k per month.”
100k/?! 100M probably his figure, People like this have no idea rakyat suffer, AP chairman just worry someday his lubang being fill up, while rakyat being force to buy ‘Cheapest CAR’
This Datuk so embarrASSing! Malaysian cars is cheapest? He think all malaysian is only take UPSR ka?
Happy to say, today (1 Mac 2013) premium insurance rate for all cars is increase. Thanks to our cruel government.
they consider that our cars are still cheap because so many people could afford to buy the cars. more cars are sold compared to the amount of SPM graduates last year :) if the cars are cheaper with just 50% of current tax, i think we will become like brunei very soon, car to population ratio is 1:2 in brunei.
more cars are sold even though they’re expensive because the average guy can’t do without a car.
sure you could thrive with public transportation in KL but not all of the 28 million people is living in KL. they improve the public transportation in KL but what about outside of KL?
they increase fuel price to improve public transport and you (i) still have to pay RM10 for 3km taxi trip mainly because there’s no meter inside kereta sewa. there’s no bus route in front of my house (a 15km road stretch).
people are forced to borrow and pay interest on top of the car price and tax that goes along with it. if an average guy could afford a better car with his pay without taxes do you think he’ll buy 3-4 average proton saga blm compared to a single golf gti for his use?
if i could afford a myvi do you think i’ll buy another myvi if the taxes are reduced?
mofaz – member of the AP club
Somehow I think I heard someone said:-
1. If no tax for car, country will bankrupt
2. If remove tax, all second hand car dealer will die
3. If some brand without protectionism, the brand will die
4. Now this guy said our car is ‘cheap’ compare to other country.
Yes Datuk, you were right among those 4 who said those words above. I don’t know how a lot of people somehow miss your point.
Our car is freaking ‘cheap’ in term of safety and features with other country. So far you really honest in your statement. Thanks for your enlightenment.
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Mat Global, you call yourself global but the way you think is far from it – more like a frog in a shell. Do the math pls. The much lower car prices in other countries more than offsets the cheaper fuel prices here. Even fuel prices 50% cheaper in M’sia, we only save ~RM20k in fuel over a period of 10 years! What is that compared to car prices RM30-50k more expensive here?
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Your long holiday is it being sponsored by dirty money? LOL!
australia petrol prices have never been so cheap they say! and they have good public transport! we have none of those things only expensive cars and not so cheap petrol!
Unforgiven, you are so pathethic. Simply bcos u can’t effort to go overseas, don’t assumed others using dirty money.
Now a days, people are more educated and exposed of what being adopted in other countries. In turn, these people apprecaite more than u of what Malaysia has to offer and to educate some monkeys!
mat global. They are very stupid. Just ignore them. Wait until the country bankrupt then they know. Government subsidy to increase 50billionnext year and they still our fuel is expensive
nasurudin, pls read the comments again before you shoot your words like an M16.
Nobody is saying that Malaysia’s petrol is expensive. We all know Malaysia’s petrol is cheap, but the point is don’t use that as an excuse to justify for the much more expensive cars in Malaysia.
Unless you get a really expensive car, and depending on which country you are comparing, the fuel price should’t be a big factor. So if you are planning to travel a lot, than the price of fuel may off set it.
For example: people like to compare the price of USA and Malaysia for some reason, so if we take just the petrol, no tax just petrol price, we are paying RM1.08 more for a litre of RON 95. So take a Golf GTI 5-door with 6-speed DSG (because America dose’t have the standard Golf TSI), with a Malaysian recorded FC of 12km/l(lowyat.net). Now the price of such model here and the states is RM210,000 and US$27,000(RM83,551), we should have a different of around RM124,000. So maths:
RM123,000 / RM1.08 = 113,889 l of petrol
113,889 x 12km/l = 1,366,667 KM
So you have to drive for about 1,336,667 KM than a GTI in the US will be worth the extra we pay in Malaysia. So it took about 7 yrs of to and fro KL driving to reach 1,000,000 KM on a Proton Saga, so basically worth a car lifetime. However, let’s not compare with the US, a country with a huuuge oil supply from American drills and..ahem… foreign sources.
UK, they pay 137 pennies for a liter of super unleaded, which translate to RM6.37 per liter. So a Golf GTI cost 26,088 pounds sterling or RM121,348. So is about RM121,000 gap between us and the brits. So using the same calculation above, we have to drive 324,832Km before we brake even, that’s about the same numbers as my 3-years old Alza driving. So not really much at all, most people I know used their cars for 8 years, in fact, a decent Unser I know of with their local holiday trip and to an fro KL, clocked 2,250,000 in 10 years.
And look at our neighbors, Singapore charges their citizen SG$2.09(RM5.22) for a litre of 95. So a the same car cost SG$197,000 so is actually…..RM492,973, and we complain in Malaysia, sigh…..what about Thailand? They pay RM4.50 for a liter of unleaded. And taking a Golf GTI an is 2,480,000 baht which is RM257,830, and lower line cars only undercuts us by RM10k.
mind you, we are only comparing petrol price, not including the insurance and yearly taxes of other countries.So, is it worth it, our extra money we pay for our cars for the ease of heart at the gas station. No! , but I see no reason to continue whining. So in a sense I agree with you Mat Global, but both our comment won’t be welcomed in this article.
I think both of you missed out 1 critical point, the average income. It’s also quite important to compare average income, illustrated below.
Europe: A person with net income 2000euros, car price 20,000euros (a manual golf).
Malaysia: A person with net income 2800rm (according to survey, this is average Msia income), a car price 50,000rm (Myvi).
If you are able to see the relation, then bingo. A smartie you are. The conclusion is like this, even if the total cost of owning a car is cheaper than Singapore, US, Taiwan, Europe, the total burden of owning the car is several times more than those countries if you take the payslip critical into consideration. And sadly, there is no quick fix to this problem. It’s either your salary goes into 5k range (which financially wise, you should be able to own a Myvi comfortably), or our RM grow larger. Thanks for the 55 years of Janji Ditepati. THANK YOU VERY MUCH SIR! I REALLY REALLY ‘MEAN’ IT!
Name, I would say Yes! Yes! Yes! to your comments regarding comparing the average income vs cost of a new car.
my fren who is studying part time and getting a normal paying job is driving a new Honda accord.
cars are relatively affordable (I did not say cheap) in US if compare USD3,000 income vs USD cars in The States.
Do not convert the USD into RM. if compared USD(income) to USD(cars) and RM(income) vs RM(cars) you can clearly see the disparity for the Malaysians!
Talking about petrol, yeah it is expensive in the States but that is a running. MY’s petrol is cheaper but the cost of a car is enough to suck most Malaysian into the high installment vs net income trap, leaving almost nothing for their monthly grocery, utilities bills and housing loan. Not enough for a decent amount to be saved for rainy day.
The auto industry is mismanaged IMHO. The super rich Malaysians who keep saying cars are still cheaper than other countries just do not feel the burden we face coz money flows to they easily. > 90% of us earn a living through hard work and do not know VVIP. Money is not easy to earn!
That’s why I said i’am only comparing petrol. I could’t find a website that list the percentage to their income of people spent on petrol, but according to the UN’s International Labour Organization, Malaysia is ranked no.45 highest in a list of 75 countries in 2009, thou the list clearly missed out some big countries. With a average monthly wage USD$961(RM2,973), it is seriously behind the world’s average of USD$1,480(RM4,579) according to ILO.
Ignore my previous comment at 2a.m, I made a huge error in my judgement, there is a very slim chance that Malaysian will break even with the price of cars the Americans or the Brits are paying. The average monthly income of earned by the people of America is US$3,260 or about RM10,000and the Queen’s people, US$3,063 (RM9,478). So we stilll spend a huge portion of our monthly salary more on owning a car here than America, but mind you, the brits are also spending more than the Americans.
Compare with the neighbors ,Singapore’s cost of car ownership is waaay higher than Malaysia. given that their average monthly income is US$2,616(RM6,525) and their petrol and car price are off the roof at least double what we are paying which negates the benefit of their higher income . Brunei offers the best piece of life, with a average monthly income of BD$4000, which translate to RM9977.00 per month, and yet their taxes on car is lower and they join the other 11 countries with a lower fuel price than Malaysia.
Thailand still suffers a worse fate than Malaysia, their average monthly wage is US$489 which is RM1,513, and their car price is not much different while having to suffer through RM4,50 per car.
Anyways, ignore what I said earlier at 2 am, I made a huge error in my judgement. Damn, now I know why I did’t want to major in economics.
^ Correction = Thailand suffers through RM4.50 per liter, not per car
AVH,
your 3 yrs old alza locked almost 340,000kms in 3 years? your are in sales? JB – Penang?
u said the Unser clocked 2 million kms in 10 years? tats 200,000 kms per year…
WTF…..super high mileage!!! This is extraordinary usage lar!!
…I only clocked 11,000kms per year.
I think majority of MY drivers clocks 20,000 to 30,000 kms per year only.
F**K!!!!!!!1
WRONG INFO!!! IGNORE PLEASE. to get the info, I went to my car at 1am to check the mileage. The Alza only did 130000 KM and that Unser, I’ve forgotten the decimal on the odo. SO yeah, HUGE MISTAKE,that will cost me my internet life.It’s 240,000.0 KMs.
SORRY…..
So Basically that means that we will probably not off set the price of the higher petrol in America. Unless you plan to hold your car for 50 years. And to off-set that of Britain, drive it for at least 15 years.
ya.. my 7month fiesta clocked 20,000km now.. wondering if it reach 12month.. :p
SHI**, sorry wrong data, extremely sorry.
I actually went and check my Alza’s odo at 1 am, so I misread it, 13ok on the odo, and the Unser , I forgotten to look at the decimal, it’s actually 220k in the odo. So a huge mistake that will probably cost me my Internet life. Sigh……. Which means my judgement is off, and there is no chance for Malaysian to off-set the heavy price of petrol of neither America or UK unless you plan to continuously heavily use the car for 15 years. Considering that a average Malaysian travels 20k a year
Once again, sorry for the error in the judgement.
Ps: I wrote earlier in a different comment on this and it failed to show up
Your theory doesn’t make sense.
First the mileage, I travel only 20k a year.
Second, your theory clearly ignore that with the current price structure, most of us cant even afford a golf gti anyway and are forced to drive pariah cars like sawi and pretend to be sporty. Where is the enjoyment factor? Life is short man…
Plus I rather save my money now today when buying a car than to drive like mad after so I could break even. Do I really need fuel subsidy if I can save a RM100K in car price?
I say let us pay the goods for what it is worth, and not distort the prices and screw up the demand supply equilibrium.
Yeah, the mileage is screwed up, sorry bout that. But the reason I want to compare against a Golf GTI, is because the equipment and spec are pretty much the same here and the US and the UK. There is no Golf 1.4 TSI in the US. Is actually for comparison sake. I would’ve done the Camry or a Jazz, but the level of equipment isn’t on par with us.
And u suppose we pay cash??? For d damn gti? Have you calculated the loan amount and interest for 9 years to own a gti? Opportunity cost in present value terms? And the extra money we have to pay to insured our overvalue car?
And bcos u drive like mad to clock up d milege to break even, the maintainance perhap?
And u have a crystal ball to tell what price ia d gas next year?
Isnt it savings today is better?
10 birds in hand is worth more than 10 birds in the forest.
I did say I am only comparing petrol price.
Agree! With the extra saving, we put in FD and it will earn us interest. Instead of the future petrol price may increase due to inflation and we will end up paying more.
as a percentage of income our cars are expensive! period!
You managed to cover 1,000,000Kms in 7 years? That is one really long commute you have there dude, that works out at nearly 400kms every day you owned the car!
Yup, this will help. So please reduce the car price I pay market price for petrol and I’ll go buy this car.
http://paultan.org/2013/02/22/volkswagen-xl1-geneva/
country Ron 95 in RM
Malaysia 1.90
Brunei 1.40 (58 brunei cents)
Our petrol cheap ?
we should stop comparing prices between us and singapore. First they are trying to discourage people from car ownership because it’s a small city country. Second, their COE’s and other taxes are atleast pumped back into building up first world infrastructures e.g roads and public transportation. Our taxes here are not efficiently spent properly for reasons that are open to debate.
Just keep in mind, in a develop country, the rich take public transportation.
that why electric cars, hybrid is here… government exempt Tax for hybrid due Saving fuel less subsidies ,in the result still LPPL
But the hybrid price is quite high. Hope that Proton may come out with Saga hybrid that is basic and affordable.
Where is Brunei, oil producing country? Did you calculate the margin of fuel prices saving and compare to the interest rate that rakyat have to ‘suffer’ over 9-10 years car loans. Not to mention any other things like other tax, interest from housing loans etc.
Support to increase fuel price and subsidise those really in need in other way to encourage more enviromental friendly enviroment.
Example: Given reasonable rebate on upgrading of old bike/car/bus/lorry to the latest technology (fuel saving) model.
He said car is cheap in Malaysia, he did not say cost of running the car.
OMG…”cars in Malaysia were considered cheap even without the dismantling of import tax” – joke of the day by Datuk joker.
does not address the issue of INSANE excise duties at all… small cars 1300cc charged 70% on excise duties. totally absurd
Cheap? we pay BMW price for a Myvi!
This Datuk is just give lip-service! What the Datuk really means are:
1) The imported cars are cheap to cater to the rich Datuks, including their playboy sons!
2) Huh, huh, …….. the rakyat, the car for you is not cheap but your life is dirt cheap! Because we still maintain the excise duty for low quality but super expensive car. We need these tax to provide gravy train for our AP Kings and cronies to main their super luxury lifestyle with 4 wife, bungalow and Lambo, Merz, BMW line their garage. For poor consumers, you are entitled for crap 1 Star BLM or at most 3 Star MyVi complete with 9 year loans!
Don’t over underate Proton Saga when the car’s ride & handling and comfort is better than Vios or City and not to mention Chery.
FUXK you datuk zainudin!! OF course it cheap for cronies like you earning more than 10 million a year. I mean getting for free rather than earning like most malaysians.
What a moron!! Bill Gates also can say a USD 1 billion submarine is cheap.
Right hand hits left hand, left hand hits right had..
all it make is just noise.
He says our cars is still cheap?? He’s living in an alternate universe. Easy for him to say since he’s AP KING!
Er.. cheaper recond car? Wish, Estima, Alphard…
Report stated cbu new car from Japan and Aussie. These mpv usually recon, nt new car, thus nt fall under the categories for tax reduction. If I remember correctly, recon car tax increased silently last year.. We re perfectly enough with current govt policies!!
Lets get down to the details of this so-called goodies before we say anything. You must look at what is the impact to the local CKD, if new CBU price is the same or very closed to CKD, will you buy CKD ? Do you think that the government will allow CBU to compete with CKD ?
Think about this.
When they CKD the Honda Jazz, the price only went down RM5000 but with a lot of equipment/features removed. So most likely if CKD reduce to compete with CBU, expect even more features to be taken out from the CKD as well. In the end we could only expect DRB/UMW/TCM to screw us further.
My not so much x grade estima was 50k on the documentation paper yet they sold it for 135k.. And they call it cheap..
AP Holders Club. Macam kelab sukan je… I also wanna join. Where’s the application form?
membership is by invitation only. otherwise pay a RM5 million joining fee under table.
My vote still go to PR
cheap car? cheap publicity ..that is..
i mean i support PR…., cheap publicity from the federal government..
660 likes? Is this a record? Means 600 over people are going to vote for PR? MITI, I think you better exclude this Zainuddin chap in your next AP giveaway.
eden ingat keto orang2 biaso boleh murah…aleh2 keto orang kayo je…this make den frust you know..
Import tax reduction is irrelevant only for the upper class people which they don’t even need it or be bother with. Read my lips…People wants excise tax reduction!!
even with zero tax (sales, excise & import) from the govt, imported cars will still be expensive because the last ‘tax’ is a variable…
cheap ma a$$
I think totally ******** up that you have an association name for an industry with the race. Talk about announcing out loud our industrial racial segregation.
You have Chinese/Indian/Malay Chamber of Commerce.
Persatuan Saudagar Arak Cina Perak. Chinese Timber Association Pahang.
So what is your point?
All those should also be banned as well.
That is the point.
And no more quotas based on race as well, but based on merit, or economic situation, instead.
If we are to be Malaysians, then we should like like Malaysians. Why brother kill brother.
Suzuki swift cheaper than Perodua cars in Brunei. Huhh
buat statement tak fikir dulu ke Datuk?hadoiyai
What the people ask is really not that much.
If now Saga FLX SE RM50k drop to RM38k
If now Preve CFE RM70k drop to 55K
If now Honda City Full spec RM90k drop to 70k
If Mazda 6 FullSpec RM180k drop to 140k
IF Mercedes C180 RM198K drop to 160k
Ok whattt?U wan put tax u put laa, but reduce a bit la haiyaa.
This is the truth! I think most of us malaysians are not that unreasonable. Kita faham juga yang the country needs to have a source of income, but what they are taking right now from us boleh dikatakan, melampau.
the prroblem is the high car price is being made “cheaper”by the banks by offering long repayment period without realising we have been hit by a double whammy due to the long interest cost. Sudahlah harga kereta mahal, the inteterest you pay for 9 yrs kills you even more
So U expect full specs CBU Japanese & Conti Car cheaper than low spec CKD Korean car ?
To early to dream isn’t it.
And what if they do that but cut the subsidy of our petrol?
we export petroleum, i remind u, AVH.
there is no such bullshit as “subsidy” because gomen owns every single drop of crude oil in malaysia. that subsidy thing is used to fool org bodoh. r u bodoh?
I’am not a supporter of our government(in fact, in this world, I don’t think anyone can fully 100% support any government), let’s just get it straight. And admittedly I may not know my stuff as much as you guys. But let me just state my point of view.
As per 2012, the CIA factbook states that Malaysia export about 644,900 bbl/per day. But the country with the most expensive petrol is Norway, with USD$ 2.62/litre and yet they export 2,184,000 bbl/litre, a figure about three times of Malaysia. And it’s not demand they price it so high, with a population of around 5 million, or 1/5th of Malaysia, it’s a rather small country.
The thing that surprise me is that across the causeway, they export 1,374,000 bbl/day, and they charge their people SG$2.17 for A litre of RON 95. and with a population of that of Norway. Average out RON 95/97, we are selling about RM2.35/litre while in a list of 200 countries, the average price of petrol is RM3.07/litre. In fact I can only find 11 countries that has cheaper petrol price. Venezuela RM0.3/litre!
Crude oil is now retail internationally at at US$0.58 a litre (RM1.79), and from secondary school science and internet research, a typical refinery can process from a barrel of crude, 49% gasoline. A site suggest that in 2008, The process in USA is estimated to cost about $0.30 to 0.60 per gallon or around $0.08 to $0.16 to produce a litre. An in America, the cost of gasoline is broken down to this :
74% – Cost of the crude oil
11% – Taxes
10% – Refining costs
5% – Distribution and marketing.
Now I don’t know how much refining, tax or D&M cost in malaysia, but if we follow the US data, crude oil is around RM1,41 not RM1.79.
So am I Bodoh? maybe, but I don’t believe our petrol is worth what we pay. Yes, I am WITH the rights of lowering the price on ALL cars and down with the exclusive AP holders club. But instead of solemnly renting about my displeasure, I try to look the cup half full. And if you believe I made a mistake somewhere, please do tell, I am happy to understand and accept my mistakes.
then care to find out those cost in Malaysia?
and care to find out how much an average norweigen earns in a month, and on average how much % of their salary spent on petrol? maths can tell truth, but sometimes it fools the bodoh
not posted?
Sadly, I could’t find a reliable info on the cost of that in Malaysia, and if you could please do share. What I’am trying to state is that in America, which has one of the most advance refinery, takes 74% of the price of petrol to buy the crude oil and 10% of the price goes into refining it. If you take that amount than the crude oil price should be RM1.40 using Malaysian RM1.90/per liter price. But a quick check shows that a barrel of oil today is at RM281/barrel or RM1.79 a liter. so basically unless our petrol refinery cost, tax and D&M is dirt cheap to only cost 6% of what we pay.
As of 2009, an average Norwegian earns 35200 Krones/month (what a nice name for a currency) which is equal to RM18,923/month. Which is sky high, but research shows that they spent only £198 or RM920 on petrol. which is ONLY 4.8% of their salary. But mind you, the reason they spent so little is because there is efficient transport system and (my judgement) not much place to go in Norway.
So let’s compare with Malaysia, with a average monthly wage of RM2,973 as of 2008. According to Bloomberg on 2012 ,we spent 11% of it on petrol, so that’s a considerably more than Norway. Of course we like to look thing negatively and see, HEY! we spent more than Norway! and cry unfair. So lets look at positive.
In the land of smiles, you pay USD$4.50 for a gallon (3.79 liters) which translate to RM13.93 for a gallon, and average out, a typical Thai earns US$480 a month (RM1,485). According to Bloomberg, they spent at least 28% on petrol. Things are’t better across the seas, Indonesian spent 37% on petrol.
But Singaporeans, given that they travel so little, taking public transportation half the time, couple with their high salary, 4.4% on petrol, even though petrol is stupidly high on the Island nation. India and Pakistan tops the list of spending 100% or more of their average salary on their more expensive(than Malaysia) petrol prices.
All in all, I started my reply to you to show you that Malaysian petrol prices, RON 95 at least is still subsidies, we are the 12th cheapest country to get a liter of unleaded petrol. Of course you can continue to find ever more reason to hate the government and ignore this point.
Try reading this too, it’s rather helpful \
Australia!!!!….diaorg ada buat kerete ka?
How about Europe n US? We want to drive Camaro ma like Transformer.
Australia ada buat kete, try google skit, jangan tunjuk sangat sikap pemalas awak tu…you still cannot afford the camaro la..wake up from your fantasy dreams…
Yes they do.
Look up Holden and Ford Australia.
WTF??? They even have an AP Holders Club!!! Blardy cronies!!!
Do the authorities really think that the Malaysian public are unaware of the fact that car prices in Malaysia is one of the highest in the world?!!
car prices I agree very much with your statement, it is high but you also need to factor other expenses in the total ownership cost.
Because of AP’s, not just the CBU or CKD cars in Malaysia is expensive but the spare parts markets as well. This put heavy burdens on the public’s as a whole especially the middle and the poor. Who benefited it. Blame the govt or blame ourselves for electing BN. Because prices of every cars and spare parts skyrocketed this few years by the business salesmen and they all blamed it on BN AP’s and its cronies policies!
He shd have suggested imported cars from Indonesia, Vietnam, Nepal, Bangladesh, Thailand etc, so as to gain more votes for Be End! haha
“our cars are actually still cheap..” this shows that these rich people doesn’t care about majority of us.. if u ask robert kuok sure la still cheap.
Our cars are actually still cheap… Wow! We have a winner for Joke of the Day!
Yup.
And a strong contender for Joke Of The Year already so early in the year.
yes, it is cheap! Rakyat life is cheap!! Don’t try fool us again.
…so they admits, it will effect luxury car which is for rich peoples only! So what’s the points? PR want to do it for rakyat but gov doing it for …
Cheap or not, let us rakyat define.
bubarkan parlimen, we will see the result!
YB Dato, hang planet mana mai ni? Aku pi Australia, drebar teksi kata “Oh you are Malaysian, where they have the highest car prices in the world”????? Buat malu je!!! Puii…..
Memang katak bawah tempurung. Oi pakai le phone hang dan google lah. Camry kat Aussieland starts at below AUD30 k. Otak kat lutut…
Highest? Means Singaporean cars its cheaper? Haha. Funny statement.
REDUCE IMPORT DUTY FROM 30% TO 5%
EXCISE DUTY TO 105% TO 10%
REMOVE AP!
WE NEED TO EDUCATE AND LET ALL MALAYSIANS KNOW WHAT IS THE ADDITIONAL HIDDEN COST ON THE PRICE OF CAR THEY ARE PAYING
The current Approved Permits (AP) is also a major cost as are the excise duties at between 75%-105% of the cost if the vehicle and the 10% sales tax.
A high end BMW 5 Series sells in Europe for RM190,000 before tax
A less well specified BMW 5 Series sells in KL for RM 598,800.
CURRENT DUTY AND TAX STRUCTURE FOR NEW VEHICLES
The Calculation:
Brand new BMW 5 Series in EU before tax:
= RM190,000
+ Shipping: RM3000
+ Insurance during shipping: RM1000
Customs Value: (RM190,000+RM3000+RM1000)
= RM194,000
+ Import Duty RM194,000 x 30% = RM58,200
+ Excise Duty RM194,000 x105% = RM203,700
+ Sales Tax @10% x (RM194,000+RM58,200+RM203,700 = RM455,900)
= RM45,590
Total RM501,490
AP Costs (given to cronies for free) and added to the end consumer as an additional cost
= RM97,310
CBU BMW 5-Series sold in Malaysia for a Grand Total RM598,800
16% of the cost of a new car goes to the AP holder.
————————————————-
MY PROPOSAL
WITHOUT AP WITH REDUCED IMPORT, EXCISE AND SALES TAX
Brand new BMW 5 Series in EU before tax:
= RM190,000
+ Shipping: RM3000
+ Insurance during shipping: RM1000
Customs Value: (RM190,000+RM3000+RM1000)
= RM194,000
+ Import Duty RM194,000 x 5% = RM9,700
+ Excise Duty RM194,000 x 10% = RM19,400
+ Sales Tax @5% x (RM194,000+RM9,700+RM19,400 = RM223,100)
= RM22,310
RM194,000+RM9,700+RM19,400+RM22,310
Total RM245,410
AP Costs (given to cronies for free) and added to the end consumer as an additional cost
= NO!
CBU BMW 5-Series sold in Malaysia for a Grand Total is RM245,410 instead of RM598,800!
p/s: Does anyone know the duty structure for National cars, Asean cars, etc? It is time for us to know what we are paying up to the hidden costs which could also be the case of car companies wants to make a higher profit margin.
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Aiyoh, the margin should be part of the CIF if the selling price in EU is 194k.. sigh
Hello rakyat,
To be honest i am not entirely sure how imported or locally assembled cars are taxed. I am not from the Malaysian car industry and it would be helpful to those who could help us to understand more on how cars here are taxed or structured.
BMW Malaysia probably earned some of the profit when they declare the value of the car at the port upon its arrival like any other car makers, i am not sure. For CKD cars, they could get away from the import duty and they would make up from the 30% savings to its assembly investments and the rest is clean profit. Malaysian car industry surely is pretty messed up.
I am not from auto industry, so I only look at this calculation based on logic and also based on my experience working with a MNC, this is how it works in the real world.
CIF = cost + insurance + freight
cost = selling price of BMW Manufacturing Arm ( Factory ) to BMW Malaysia.
BMW Malaysia is the Distribution Arm ( separate legal entity )
BMW Malaysia must make a margin
/profit from their selling price in MY.
Otherwise there will be transfer pricing issue with Lembaga Hasil Dalam Negeri (LHDN)
How can BMW Malaysia sell their cars without any profit? (as per cisitalia). Do you think LHDN will allow BMW Malaysia have zero profit in their profit and loss account for every car sold in MY?
Anyway, I am not in the auto industry, maybe their costing method is different from all other industries.
For those who thumbs down me, think about it.
BMW AG Factory makes profit when they sell to their distributors in other countries ( these are most likely BMW AG’s subsidiaries overseas or could be 3rd party owns distributors. eg. BMW Malaysia, I do not know if owned by BmW AG)
BMW Malaysia then sells the cars to the local car dealers (eg. Auto Bavaria, Wearnes etc) who then sells to end users like you and me.
BMW Factory need to make profit when it sells to its’ distributors (aka each countries’ principal. for MY is BMW Malaysia)
BMW Malaysia need to make profit when it sells to local car dealers ( total landed cost per car = CIF + import tax + excise tax + sales tax)
Local BMW car dealers ( eg. Auto Bavaria, Wearnes …etc) need to make profit when they sell to end users)
but for clarity , I ask that those who works in the auto industry to clarify or let us know how it works.
cisitalia,
just realized that your CIF is the Selling Price in EU. (as you and funny mentioned. I did not check the EU selling price to verify 194k)
in my calculation, I took 194k as the CIF from BMW Factory in Germany.
ok, on hindsight, i should have verified your CIF value.
however, your formula is flawed.
EU selling price is definitely not BMW Malaysia’s CIF value but probably you can assume BMW MY and BMW EU should have a similar profit margin.
BMW MY’s CIF is BmW Factory’s selling price to their distribution Arm, in this case BMW MY + Insurance + freight.
However, BMW EU and BMW MY ‘s purchase price from BMW Factory should be almost the same theoretically.
Distribution Arm’s Budgeted Profit Margin % is also normally dictated by BMW Germany (The Ultimate Holding Company), nothing to do with BMW Factory.
So, In your calculation, your CIF should be much lesser than 194k.
Funny, the owners of the F10 has the customs document. The CIF value is available on it.
I bet it is below 100k.
F10 owners, please furnish the CIF value if you are willing to help.
With the real CIF value, we can calculate the total landed cost of a F10.
We will then know the approx profit margin made by BMW MY and the Car Dealers combined ( & assuming AP cost is 20k per piece).
However, bear in mind selling price includes BSRI.
So, provision is made by BMW MY to cover the cost of BSRI and the warranty cost over the car’s warranty period. This I do not know the value. But should be more than 20k per car over the warranty period.
There is no way we will know the actual contribution margin per car unless we work in BMW MY’s Accounts Dept.
and yes, I agree MY selling price should be approx 200k + , not the current 410k for the F10 528 sports.
cisitalia,
just realized that your CIF is the Selling Price in EU. (as you and funny mentioned. I did not check the EU selling price to verify 194k)
in my calculation, I took 194k as the CIF from BMW Factory in Germany.
ok, on hindsight, i should have verified your CIF value.
however, your formula is flawed.
EU selling price is definitely not BMW Malaysia’s CIF value but probably you can assume BMW MY and BMW EU should have a similar profit margin.
BMW MY’s CIF is BmW Factory’s selling price to their distribution Arm, in this case BMW MY + Insurance + freight.
However, BMW EU and BMW MY ‘s purchase price from BMW Factory should be almost the same theoretically.
Distribution Arm’s Budgeted Profit Margin % is also normally dictated by BMW Germany (The Ultimate Holding Company), nothing to do with BMW Factory.
So, In your calculation, your CIF should be much lesser than 194k.
using selling price in EU as CIF to calculate, the import , excise and sales tax would be over stated as it includes BMW EU’s profit.
Funny, the owners of the F10 has the customs document. The CIF value is available on it.
I bet it is below 100k.
F10 owners, please furnish the CIF value if you are willing to help.
With the real CIF value, we can calculate the total landed cost of a F10.
We will then know the approx profit margin made by BMW MY and the Car Dealers combined ( & assuming AP cost is 20k per piece).
However, bear in mind selling price includes BSRI.
So, provision is made by BMW MY to cover the cost of BSRI and the warranty cost over the car’s warranty period. This I do not know the value. But should be more than 20k per car over the warranty period.
There is no way we will know the actual contribution margin per car unless we work in BMW MY’s Accounts Dept.
and yes, I agree MY selling price should be approx 200k + , not the current 410k for the F10 528 sports.
Cmon bro..194K is selling price in EU country,
definitely the margin is there.
What cisitalia calculated is correct.
U dont know the COGS of the BMW…194K is the selling price man..
When BMW Malaysia order a car. definitely on the purchase invoice is lower than 194K..
That is a fair statement. If there is no AP,coupled with a reduction in import duty, excise duty and sales tax, only then we get to see a reduction in the current price of all imported cars.
Car is a very essential item and the govt should be cautious before implementing such heavy taxes. Because of their greed and selfish personal gains to themselves or rather enriching them and their offspring. The burdens is put directly to the peoples that elected them wrongly. Such taxes instead of building more MRT at first was short changed with LRT. (Same time where Singapore implemented MRT) They knows that the peoples are going to vote more for the opposition because of their wrong doing. But they are already so rich to themselves that even if the lost. They will still have billions RM for many generations of their offspring to come. Are Malaysian waking up now? Especially the majority race!
Cheap depending on which currency you are comparing against. Affordability is more accurate. The main question is can anyone afford a good car with their current salary? Given the limited choice that we have, I think the answer is clearly evident
Good point on the cheap vs affordability. But you forgotten to define good car. Maybe our Datuk Datuk punya defination of good car are Viva, Myvi, Saga which we can afford what! Or rather GOOD ENOUGH for rakyat Malaysia…
Attention to ap kings, datoook and policy maker. We are below average income people, are enough suffered with car prices in Malaysia. It’s ridiculous and illogical. Every Malaysian deserved a good car once in their lifetime.Your tyrant policy kill Malaysians’ human rights
http://www.maa.org.my/info_duty.htm
Yup.. Excise Tax is still bloody high.. Even cheapest also need 60% above… Plus other tax.. WTF!
Alloo datuk2 sekalian..compare dollar to dollar, ringgit to ringgit la..the cars in malaysia cheap ah??? cheap my a-sss laa..
Datuk Zainuddin should buy himself Viva and Saga.
Sama-sama rasa hidup macam rakyat miskin biasa. Apa macam ???
u mean driving viva/saga is a torture?
Compared to japanese and european non luxury manufacturers of cars in the same class, yes, they’re terrible drives. Idiot much?
Cheap = Earning from AP. That is why car in Malaysia is cheap? What he sees is his side of the coin only. Like BN, lost touch with reality.
datuk, I lahir sebelum merdeka bukan kelmarin…
Woh! Cars in Malaysia were considered cheap!!!
Gang & cronies mind.
love to read many desperate comment here
haha… if don’t speak/announce such “useless” policy change, no one will be angry.
Either “excise duty” or “import tax”, watever they want to say, both are tax. Enough to be cheated.
CHEAP?!
Facepalm.
Datuk Zainuddin Abdul Rahman,
Which planet were you from??
Is it from KIKI LALA planet??
add the loan interest over our expensive222 car, super duper expensive dear datuk
woww. overwhelming responses.show that its sincere and finest comment every malaysian. The topic to discussed is like bomb to explode sooner. Well done guys.your comment are welcome.
My 2 cents worth of thought.
We are all stuck in this dilema. The country was not manage properly. During the economic boom housing pop up almost anywhere. Property price spiral up pushing many of us moving outskirt for a decent home with money. Some cant even buy and could only rent shoebox stacked high. The need of individual/family transportation became priority. Public transportation is not effective due to inconsistency of the policy maker.
So when proton emerge, government sets all this taxes and duties. Putting up high turf so that proton could play too. Somehow this actually brings a lot of money to the government. Similar to petronas.. this is also their milking cow.
Sadly, cost of living as well as other basic necessities goes up too. Medical treatment etc.. I would love to see people smile even in traffic jams.. so much stress.. so if any so called goverment wanna be is reading all this comments (even though it is a car blogs) please remember that everything connects in a way. We need better policies that treat us fair. You are not our master as we are not your slave.
That’s why we need a change. Revolution doesn’t guarantee happy ending but not doing anything will ensure absolute unhappy ending.
We have the choice and we have the right to make the change.
Talking about property. Do you know that most cronies are now in properties? The only way to kill them is to implement a policy that limits a person name to buy 2 houses only. Shoplots applies too! Industries are based on nos. of employees and selling of houses, shoplots and Industries is heavily scrutinize by income tax return figures policy. This is one of the best I know to hits those income tax evaders! Then everyone will be fare and the price will be back to normal. This kind of problems and solutions does not need a genius to solve this!
cheap!…he consider cheap la…or if i got the same pay as he earn la…i also will say it…why so cheap one!..
He said is cheap because he no need to pay for AP ma!
Correct correct correct brader ! Dia punya kereta at cost! We are paying for his cheap car!
Pekema? Sounds so like the other thing..mayb suits them very much
Pokemon?
No lah Ah Beng, you say pekema cepat cepat le….and with anger!
Knowing 1 AP holder, nite birthday anak..siang pay cash F30 as present. Money is like water in stream…benefited by the system.
I propose for a free BMW for every Malaysian. 1 Malaysian 1 Bimmer, that’ll make the rakyat happy. BM1W Ftw.
Can you dig it? Sucka…
But just for the design alone I would still Honda over BMW :]…..
Nice sentiment.
But BMW maintenance after warranty over is fcuk. And why give all the money to the Germans.
How about free, good education for everyone and their kids who are not AP holders. Probably cost the same. We get more skills, happier, more knowledge, and can be better than other countries. Sounds “boring”, but materials things are sometimes not the answer.
Tho free but I have no time masuk workshop. How bout Lexus? Can Lexus1M?
Since Malaysia like to use 1M for everything, instead of giving out BR1M, the G can give out BMW 1M for free.
Good point.
These idiots really kaki kong kaki song.
Only benefit would be Lexus, Infiniti etc whereby its fully imported from Jap. Toyota/Honda either from Thai/Indo, and the crappy ones locally assembled.
No impact at all to the cars most people can afford
These idiots really kaki kong kaki song.
Only benefit would be Lexus, Infiniti etc whereby its fully imported from Jap. Toyota/Honda either from Thai/Indo, and the crappy ones locally assembled.
No impact at all to the cars most people can afford
But many people does not know what is CBU…and tot the gov so good reduce tax and hence possibly car price will reduce..
Seem like a clever tactic for GE with minimize losses..
Paultan Admin,
Can you please provide a list of cars that can enjoy the import tax reduction?
It was interesting to see in the TV3 news yesterday when all the CEOs of the car companies were asked about the announcement and their remarks was if the public want to wait and see on the price reduction in the market before buying a car,well the price reduction is very little and the public should not wait.
The news announcement by the government is like them telling us ‘We are giving away free unlimited soup NOW to all Malaysian as long we bring our own FORK(not spoon) to eat as much as we want. :-)
“Datuk Zainuddin added that cars in Malaysia were considered cheap”. Yeah very cheap, tats why we paying 2 car price for 1… If u wan us buy Proton car, make cars with better design, quality & technology … Not by increasing import tax & excise duty on foreign cars!
Datuk Zainuddin Abdul Rahman, sudah biasa dapat AP, kalau berani import keta tanpa AP la, buat macam businessman lain, i wonder what cars this datuk is driving and his whole family is driving! Guarantee high end punya and no proton or viva or myvi in their stable!
what..cheap car? tax cut? good joke..nice try.
cars in malaysia is cheaper?? Has he been living in the moon or what????
No difference for me as I’m getting a Hybrid which is already import tax or duty free, but AP and Sales tax yes…………. At the moment the incentives last until end of this year, which the tax incentives might be or might not be extended…..
If I remember correctly, in around year 2005, someone said the import taxes/duties would be reduced in 2010?? It’s already 2013 now and they’re saying similar things in 3 years time yet again, expected to happen in year 2016-2018..???
Do you think we can believe that? I personally do not believe it until the moment/day it really happens………….
The price is the lowest I believe so if you want a Hybrid now better get it before end of this year or December 31th at the latest LOL……
So the one thing that I agree with the G is the removal of import tax of Hybrids with petrol engines of 2.0L or less (Or not, BMW?).
If you’re shopping for a new car and refuse to pay any import tax, the only choice is to get Hybrids (If you can afford….). There are quite a number of choices now :]…………
Off cost la cheap to them….they bought at cost price while the rakyat bought at market price which is double or triple their cost price…..
One more thing…stop comparing fuel prices just by converting to rm… of course it will be expensive….try to include the income of the population…the facilties/infrastructure provided by the government ..efficiency of the public transportation…and the fuel which we are still stuck with euro2m while most other countries are going euro4 or euro5….
I rather pay market price for fuel and cheaper car…bcos atleast i can control my spending on fuel…but with the current setup, if you get a car loan…you’re stuck with it for 9 years….
Ap holders are mostly rent seekers and ali baba, there isnt any credibility when they open their mouth..tax reduction news are wayang, plain wayang..
“Our cars are actually still cheap… ” WTF!!!
When I was in Texas, 45 bucks can fill up Mazda 6 tank fully. and Mazda 6 is about 25k only.
Dollar to dollar
45 bucks can’t even feed a Viva fully, and Viva cost more than 25k.
So this is the chairman of Pekema’s pukima logic
Hi,seriously abolishing the whole taxes thingy can literally cause negative impact to majority of the people in Malaysia. How about second hand dealer? How about the brands that people sticking to it because of the price? Proton,Perodua, Honda, Toyota, Hyundai, Kia? I bet that a lot of people will go for at least the lowest model of BMW and Merc? Malaysian mentality. How about other brands? Second hand dealer? People who having years of loan?
Malaysia car price is affordable, is not cheap. To some people it is cheap, but to some it is expensive. But to me, it is freaking expensive. Perhaps they should do something on their price and also coming out with a solution which can help rakyat on this.
Would like to share my thoughts…
I’m a car enthusiast and I visit Paul’s blog everyday.. . The problem with our country starts for the core….. I c many people here only consider our countrys tax income and our oil income only but pls wait n think…What Malaysia doesn’t have….. Our country is full of natural resources… Other than that we also pay tax in other forms…income tax/ factory/ hotels/restaurant..etc… And also cigarettes and liquor and many other things….
What does Singapore have…. But if u ever been to Singapore then u will know about their public transport system…. Their buses and taxis are very comfortable…. Their mrt system also very good… If u take mrt in Singapore at 7.30 am it will b packed with people going work by mrt…an engineer working with me in Singapore aged 37 and has family with children still haven’t bought car because he doesn’t has the need to… His family rely entirely on public transport.. to com work he takes mrt to our workplace and a 3 min walk. His children also taking mrt to school.. But in Malaysia can we rely on our public transport as our daily commute….
Look at our housing prices booming like no body business…. Doesn’t our country care about us at all…. Yet again someone will compare with other country but we have so many unused land…. If in kl I understand but in Ipoh also very expensive…. Single story house in a industrial area costing around 348k…. How a person with 3k income( which is very hard to get in Ipoh ) can afford to pay 30k deposit and 1270 ringgit for 40 years….
Jus to afford a good car and a medium sized house a person has to churn out all his life savings and has to be in dept for many years to com…..
That is y everyone wants to c the car prices go down…. The extra money they we pay in excise duty in cars can be used in other expenses to make our life a bit better…Even a 10 to 15 k drop will make many Malaysians happy… The living cost in our country is booming buy our salary remains low
I know this is a car blog…. But for those who feel my pain u will understand…. I love our country and would like to c the rebirth our this lovely nation… c
i agree. the taxes are ridiculous. up till today, looks like the govt has no intention at all to lower the car taxes. and to say that our car prices is cheap, to our faces, is down right insulting! The AP thing is definitely an abuse of the system. The problem is, if excise duties reduced, the 2 Ps , especially P1 will close shop. Their production cost too high. They say they are paying excise duties too? yes, they do, on paper. but every year they take back more from the Automotive fund given by the govt. Even without excise duties, they still have to sell at current prices. and interestingly, their prices are even increasing!
Aiyah susah lah DATUK….
Do you know that ap holders add no value to the entire system but just make d car price more expensive? Other than excise duty, each car still have to pay d robbers for some kind of permit that only exist here.
I am waiting for the day these robbers eat tyres for a living.
nevermind let the DAP to announce tax free car from ASEAN and let it be a history from now on.
we are suffer enough for this kind of sweet talk.
and it’s a good time to change for our better future.
the so called dato or politician as totally disgusted since they never leave a normal life
MAA & Pekema….
Your idea and voice are like flatulance.
You syiok sendiri when release it, the gas is highly foul and everyone hate both the gas and the person who farted.
I still maintained what i said earlier.
If one just own mid exec saloon like 2.0 Accord range and another small car it is still cheaper to drive and LIVE in this country despite the high car taxes.
You may vote (dislike) me until Limit Down also ,it won’t alter my findings.
banyak kali dah terkena, aku dah x percayaaa!!!!!
I wonder if these ‘dirttooks’ consider cars cheap in Malaysia due to many cars being sold every month which majority either Viva, Myvi, Saga, Vios !
NEW WORLD ORDER = Where does money come from?? + Abuse of entrusted power for private gain+ Regulate policies for their self interest = MONEY MACHINES,
Do they hear us when we cry?
How long will this suffering last?
…It is only a matter of time
1. Abolish excessive tax.. remain other tax.
2. Abolish all tax for local car to give affordable car.
3. Bank only give loan 70-80% loan.
4. Petrol remain same so ppl don’t use unnecessary,
5. toll need to reduce.
Anybody can help me:
Our import car price is more cheaper than which country? other than singapore
Paid 70k of tax for my car why? All malaysian should have the ability to choose whichever car they want without paying xtra tax
Why govt did not support biodiesel? The cost of biodiesel would be cheaper by now vs petro/ diesel price without subsidy
A big portion of the car loans are for the import taxes, which are subjected to bank interest. To reduce the import taxes in short term may be difficult as the automotive industry does involve a lot of people and this may affect their livelihood and the industry itself.
What the gov could do is give car owners a tax rebate based on the car loan. Right now its like a double tax -one by gov and another by the bank. Paying interest on the actual car value would be fair. The loan for the import duties should be interest free.
Protecting Proton is just an excuse.
Cheap? means mazda cx-5 and mazda 6 will reduce the price? hope they reduce the price. let everyone own luxury car.
PEKEMA…hmm..why does it sounds like some foul language?
Exise duty for cars 2-lit and below should be reduced at 10-20% a year until 50%. Rate of excise duty for Small pick up trucks, single cabin pick up and small vans should also be reduced by 50%. A great help for Rural people and low income group
It’s confirmed Bermaz will not pass on the savings to it’s customers. Apparently they claimed lower taxes already been factored in. Anyone can confirm what Bermaz said is true? If it is not, even with lower taxes, price stays the same, just like the Mazda6.
of cos that datuk said our car still cheap..cos he no need to pay extra to buy a car…certain parties gave him. ask him to eat la..