Budget 2014 was announced earlier by Prime Minister Datuk Seri Najib Razak. There was no mention of the status of the current tax exemption for hybrid/electric vehicles, which we’re discussing in a separate post. Here are other auto/transport-related points from the PM’s speech:
- Transportation services such as bus, train, LRT, taxi, ferry, boat and highway toll will be exempted from Goods and Services Tax (GST), which is set at 6%, when GST begins on April 1, 2015.
- The GST replaces sales tax and service tax. The current sales tax for cars is 10%. Does this mean that GST will reduce sales tax on cars by 4%?
- A sum of RM980 million has been allocated to refurbish and upgrade 437 km of rural road networks nationwide. Additionally, RM500 million has been allocated for the Pan-Borneo Highway Project.
- To address the shortage of parking lots at Hospital Kuala Lumpur (GH), a total of 1,950 new parking lots will be completed in 2014.
- Providing ‘park-and-ride’ facilities at LRT, KTM Komuter and ERL stations with an allocation of RM62 million.
- The implementation ofSistem Perkhidmatan Teksi Berpusat (centralised taxi service system) with an allocation of RM15.3 million, to ensure that taxis are distributed more efficiently to customers.
- Construction of the 316-km West Coast Expressway project from Banting to Taiping.
- Constructing the Ipoh to Padang Besar double-tracking project, and later, from Gemas to Johor Bahru as well as upgrading rail tracks across the country, with RM2.9 billion allocated.
- Refurbishment of KTM Komuter EMU (Electric Multiple Units) trains with an allocation of RM28 million, to improve service reliability and frequency.
- The building of city terminals (hentian akhir bandar) and the upgrading of bus stations in addition to drop-and-ride facilities with an allocation of RM28 million.
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I am willing to bet there is no change but I am hoping to lose this bet.
I’m hoping for the low, low, LOWWWWW, chance of us motorheads maintaining the no excise duty for hybrid cars..
The bigger picture is:
I give you 2100 so that you think I am good and like me.
Secara diam-diam, I am collecting it back by SGT 5%, I don’t care you are poor or not.
It’s like lets taks the papamiskin.
If a government does care for its rakyat, it should be a natural thing for the government to do ie promote hybrids to save fuel and money for the rakyat. Why should the rakyat plead and beg the government to save money?
Why should people beg the government for fuel efficient cars? Isnt this a natural thing for most decent governments to do? Most people can save half their fuel bills per month. I spend RM1000 a month now. If I had a Hybrid, my bills will be RM500. The RM500 saved can go to good food for my children. Doesn’t the government want this? Whatever money we save, we can use it to buy better food for our family.
As to Environment Protection, isn’t it a natural thing for any government to give us energy efficient cars which emits very little emissions. Why must we beg for this? Today’s lorries, busses emit thick poisonous sulphuric diesel smoke into the air which suffocates the rakyat. The government knows this. The ministers know this. They need not be told. The Environment Minister himself should be insisting on Hybrid and Euro 4 fuel so that the rakyat don’t get choked with dirty diesel fumes which in turn increases hospital expenses for the Government.
But it seems, the rakyat of Malaysia must beg the government for the right to breathe clean air and to save money using hybrid cars. This is utter nonsense. Government says it cares for the rakyat, is this how you care for the rakyat?
After all this drama, you will see one thing, nothing will happen. We will still be having dirty diesel and we will still be seeing thick black smoke emitting from our busses for the next 10 years.
Anyway, what happened to the gradual reduction of car prices up to 30% promised by Najib before the election? The government should honour their 30% reduction in car prices promise. It is the price of cars that have heavy impact on ALL Malaysians. The government promised this to the rakyat? Where is it? It is already 4 months since the Election and by now, there is no word on the reduction in car prices. Has the government played the people out again?
Those who voted for BN should have know this coming.
The Government made a mistake. They should call me to advice on car matters and RV issues for the Budget. My advice is always good and I am an expert and authority on RV. Also in the Budget, government fail to inform people that only Toyota is the only car worth buying in Malaysia.
What I hope for is the tax on EEV i.e. cars with low CO2 be reduced/exempt. Then we shall see those newer, more efficient models, like BlueMotion cars, Toyota Optimal Drive cars, Blue Drive cars and EfficientDynamics cars taking the centre stage. And manufacturers will have to bring in more advanced and efficient models. Including Proton.
But that will be a long shot for sure. 99.9% won’t happen. What to do. -.-
At least lets hope hybrid exemptions are maintained. And maybe extended to at least 3.0l engines too. (Again long shot…)
GST with or without income tax rebate?
If not, so we will get taxed when we receive our income and get taxed again when we spend money..
Double tax ??
Households with monthly income below 4,000 ringgit exempt from income tax. so if your income 4,000+, u get double taxed.
If 4000 fix will get tax?
Agreed,
It far worst if you manage your own company.
Corporate tax, income tax, gst and stuff.
Hopefully gov looking for ease burden on car price and also looking into possibilities to limit loan tenure for cars.
Kiri kanan atas bawah kene ketuk.
So, BN practicing Komunism??
Ripping off the rich to help the poor?
err…did i miss any announcement on hybrid incentives? @@
Nothing on hybrids. Does this mean that all the current hybrid prices (below 2000cc – prius, prius c, insight, civic hybrid) will increase significantly?
So no price drop or hybrid incentives starting next year or I just miss that point?
Nothing said about the hybrid tax exemption. What does it means?
What about fuel standard and emissions regulations ?
In 2010, ASEAN made a commitment to increase our petrol standards to Euro V by 2015, yet Malaysia is still using Euro II today.
Singapore is transitioning to Euro V, and Thailand has Euro IV. How is it that as an oil producing country, and the third richest country in ASEAN, we are still using Euro II petrol ?
Stupid questions. Go ask Proton why keep dragging entire auto industry down waiting for them to produce world class diesel and 25KM/Liter petrol engine.
How is it Proton’s fault that we don’t get better quality petrol ?
The CamPro IAFM+ used in the Saga and Prevé is Euro IV compliant, and the CamPro CFE is Euro V. The Petronas engines that Proton bought will be probably be Euro VI.
Meanwhile, Toyota, Honda and Nissan all give Euro III engines for their B and C segment cars.
I’m not sure about diesel, but AFAIK, Malaysians still don’t think highly enough of diesel cars. It might be true that the government wants Proton to have an edge in diesel and green technology, and that they are ‘holding back’ those sectors, but when it comes to petrol standards, I don’t think Proton is to be blamed.
Proton, bila nak tutup kedai? After bajet, still want to continue spending the Rakyat’s money for your so called ‘RnD’?
Terima kasih, Be-eNded and its stupid supporters.
Terima kasih to proton and its stupid supporters.
So do we get cheaper cars or not?
I have a feeling we won’t. True GST replaces sales tax, but I don’t know if GST will be taxed over the pre-taxed price of the car or include the excise duty and import duty.
I don’t like tax, it’s complicated.
So how does this new GST system affects our repairs bill? Currently, we have to pay Service tax on the labour charges only. And no tax whatsoever on spare parts.
With the new GST, does it mean we have to pay tax on spare parts portion, too?? That would have immense implications on our repairs bill!
Can any tax experts out there enlighten us, please?
Thks
Those parts already have 10% sales tax built into then. Means effectively less tax – now 6%, a drop of 4%.
Are you sure the tax of sales and service is 10%…if I’m not mistaken the tax have variant from 2-10%…if I’m wrong it a good news…
It is 10%.
A 4% drop is actually quite significant, but I don’t think dealers will pass on the savings to consumers.
Yep, and we all know that even those ignorant b…..ds, n we all know who they will blame…
wah..double tax is much burden for us..either i was a student right now can feel the high life-cost living…and that not an affordable right now for salary RM 4000 and above for blood-sucking economy..
looks like have to wait for next NAP announcement…
No announcement on continued 2014 on hybrid means next year price sure go up lo. so who want to change new car do it now and buy HYBRID ASAP as Toyota its still CBU Japan.
I think you guys really do not know what is the impact of GST. It affact every single transaction. The metal seller to the shock absorber factory, 6%; shock absorber to car manufacturer, 6%; Car manufacturer to end user, another 5%. It will be a panic buying of everything before 1st April 2015. Inflation definitely will hit us badly
yes.. in simple words yes…
but the tax is on the value adding part only.. not compounded like u seem to imply here..
All the AP cronies can relax now….spa time.
Bajet 2014!!! Pui~~~~~
we want cleaner fuel
The GST replaces sales tax and service tax. The current sales tax for cars is 10%. Does this mean that GST will reduce sales tax on cars by 4%?…..well, Pakatan politicians are already saying “EVERYTHING” will go up in price. They said that BEFORE the budget was announced. So someone go ask them for the answer when nobody know the answer. Either they have crystal balls or talking nonsense.
no GST exception for petrol & diesel, can we expect increasing price of those?
It’s clear, gomens time to collect & rip the people away this next 5years as they are on shaky ground & don’t know what will happen next election…be coz of failure to support the gomen, this is the heavy price the poor & middle income rakyat will have to pay & keep on paying making the gap between the rich $ poor even bigger than ever. All those comments given by the rakyat for the budget when unattended by najib, why waste time doing it. Guess a lot of people will be booking hybrid cars before year end.
Budget objective:-
1) To increase overal government income by impose various tax system
2) To avoid strong rejection on Rakyat toward BN government
3) to diverse the attention of public by committing on overall infrastructure development which will eventually drag to 4-5 years until next budgeting.
4) medical & education…? Better don’t touch as it will reduce or affected the income of GLC’s since they are the one supporting & funding us to win in GE / UMNO election.
Luckily till now, it is still generally accepted by not-so-smart Malaysian!
The solution is easy. If all of you ungrateful bast**** wanna keep complaining, just PINDAH NEGARA LA. All the other initiatives the gov had planned didn’t even get credited. Complain complain complain. Damn u people. And I’m pretty sure this comment will get a pretty epic thumbs down but who cares. This website is dominated by pembangkangs anyway… Nuff said :)
If we all pindah..guess you can only have grass as your food. Please use your brain more often.
you sure we only have grass? you GOD? Please use your brain more often.
If all unhappy Rakyat Pindah as what u hope for,
Coming next GE BN will win by 100% record.
No hope for u to get RM500/= already.
Even the Petronas not enough to feed the uxxx kroni, now they come with the GST 6%… how long 6% will sustain? another year will be 16% just like sugar price hike?
As usual, selfish Malaysians only think of themselves and complain, complain and complain, and hope money/subsidy will fall from the sky…
Money don’t fall from the sky, that’s why you don’t let Sharizat and her RM250 million lembus cabut, that’s why you don’t let 12 billions PKFZ scandal get away just like that, that’s why you don’t spend RM26 million on house expenditures. Don’t you read the recent Auditor’s General revelation? Membazir and more pembaziran from BN.
No mention of car price reduction up to 30% as promised in BN manifesto. Oh wait, they said, “dalam masa 5 tahun ini, kami berjanji akan…”, I’m hoping it will happen, but fat chance judging by the current state.