The much-anticipated National Automotive Policy (NAP) revision is currently yet to be tabled, but things should be finalised by year-end, according to Minister of International Trade and Industry Datuk Seri Mustapa Mohamed.
The 100% tax exemption for hybrid and electric vehicles ends on December 31, 2013, which is just a couple of weeks before the NAP announcement is supposed to be made, between January 10-15.
To a question on what would happen in the interim period, the minister said in a press conference at the ongoing KLIMS13 that “they are working on a solution.” We expect that since the timing is that close, the current exemption and prices might carry on until the new hybrid tax structures are announced in the NAP.
He also confirmed that the Goods and Services Tax (GST) announced in Budget 2014 does apply to cars. As such, the existing 10% sales tax will be abolished and replaced by GST, which will be 6% when it comes into effect in April 2015.
The exact mechanics of the tax structure have yet to be defined, Mustapa said. This could well result in new car prices coming down. By how much? Your guess is as good as ours.