The government’s stance on excise duties were made clear today at the National Automotive Policy (NAP 2014) announcement – its current fiscal position benefits from the revenue obtained from charging excise duties, so excise duties are to stay.
However, MITI minister Datuk Seri Mustapa Mohamed said that the government is constantly reviewing its fiscal position and is open to the possibility of reducing excise duties when the fiscal situation permits it.
Excise duties currently stand at about 65% to 105%, however many car manufacturers pay much less than that thanks to the various mechanisms in place in exchange for car localisation. According to Mustapa, the average excise duty being paid per car is about 50%.
“I’m just sharing with you why it is not possible for us now, under present circumstances, to consider reviewing some of these taxes. Last year, we were estimated to have collected RM480 million in the form of import taxes, because as I said, from ASEAN was (subject to) zero percent, while from many countries taxes are low, and hybrid is also zero tax, therefore taxes we collected in the form of import duty are small.”
“The auto sector is a very important contributor to the government’s coffers – 75% of the duties collected from the auto sector comes from excise duties,” he said.
“On excise duties, the position of the government is as follows. Given the current situation of the budget, it is not possible for the government to review excise duties, but the government, of course, in the next few years, will review the fiscal situation. And as the fiscal situation improves, the government will consider looking into the possibility of gradually reducing excise duties.”
“At this present moment, it is not possible for the government to consider any reduction in excise duties. Going forward, the government will be monitoring the fiscal situation, and in the event the fiscal situation is conducive, the government is open to the possibility of gradually reviewing excise duties. As you know, excise duty is now between 65% and 105%, although many car companies, through various policies, pay a lot less than that. We estimate that car companies pay about 50% on average,” Mustapa stated.
“If the financial situation improves, the government is open to the possibility of reducing excise duties gradually over a period of time. This is an answer to many proposals coming from the public and parliament especially in the run up to GE13. I hope this will put a closure to this contentious subject,” he concluded.
Excise duties provided the government with revenue of about RM7,308 million in 2013. In addition, RM480 million was collected in the form of import tax and RM2,039 million in the form of 10% sales tax.
Looking to sell your car? Sell it with Carro.
put fuel tax instead of duty tax. put GST on the cars instead.
it doesn’t punish people who needs to buy a car and consumer will be taxed based on consumption, not on necessity..
What perfect common sense. But unfortunately the G doesn’t have any.
Where is Najib’s promise of 30% reduction in car prices over a period of 5 years? Najib promised before the election that if we voted for him and BN, he would ensure that he would match PKR’s offer to reduce car prices. Najib himself quoted saying that the BN government would reduce car prices by up to 30% gradually over 5 years and we should trust BN. Infact he said BN always keeps to their word. 7 months have passed and nothing has been done. He promised last year!
Infact companies like Toyota and VW have increased their prices. Does not matter now whether a car is EEV or ELV. What matters now is where is Najib’s promise?
Madani, please ask your boss Najib to honour his promise. This basic thing also MAI cannot do, how can the rakyat trust MAI and the BN Government?
The reduction in your chart is Superficial. Got no meaning at all or any real savings to the rakyat. It is unfair, while we rakyat are told to eat Kangkung, the Minister’s wives are buying Birkin handbags costing RM100,000 each. And that also one person got berpuluh puluh Birkin handbags.
And the AP robbery is still going on. 30 Million rakyat suffer just to benefit 20 or 30 crony AP holders, all related to the Ministers.
First of all, only 47% of Malaysian believe in Najib the Kangkung Razak. (Don’t tell me you are one of them)
Secondly, whatever promise by Najib the Kangkung Razak before election, either not full fill or go the other way round. (like lady, if they said no means yes….)
We dont demand 100% reduction in excise duty, start off with 20% reduction is good enough for us. Stop the government corruption, then u get the surplus. Unfortunately, this is Malaysia. “Tak suka? pindah la…”
Where promise of Pakatan give free education? Instead, close Giat Mara. Dont make yourself slave to politician dude. They all liar
Saudara, saya amat berharap bahawa taik perisa kangkung yand dicalit di muka saudara enak sekali. Begitulah janji BN, bukannya harga turun, sebaliknya taik dicalit di muka rakyat. Syukur, harga kangkung dulu naik, sekarang dah turn.
Abuya, BN is in power and running the country. Use your head a bit. This is the brain drain in our country
GiatMara is a land ownership issue, it can easily be resolved by buying or applying the plot ofland or request for a transfer of the same size. What you need to ask yourself if FGVH IPO netted billions why Isa Samad wants to close 5 colleges Yayasan Felda which only costs RM15 million annually. Use your brains, FGVH IPO is bigger than Facebook.
Janji sudah di CAPATI for real!
Yo bro.. the car still subject to gst.. see they tax u left and right
Rob from left right up down… And yet promise is just a promise. Haiz. Tinggal duit cukup makan kangkung saja
good idea…i really like it. But remember ,once fuel price increase..other thing increase too .and more kangkung story come. But OK lah,at least one akujanji met to ” reduce car price “
Is the decrease of income from import duty due to FTAs?
I think the figure shall be in Billions instead of millions.
lol same meaning…1000 million = 1 billion same as 1000g = 1kg
1kg kankung!
Billions of hard-earned money getting songlap.
“open to the possibility of reducing excise duties when the fiscal situation permits it.” Haha! Bila harga minyak dunia naik dia ikut, tapi bila turun ada dia turun? Come on lah don’t fool rakyat macam kanak 3 tahun…
The only way to teach the government is to stop buying new cars completely . Only then then government will budge . Otherwise we’ll keep buying at astronomical price disproportionate to our salary
At that time.. Gov will impose eol policy..see u still can tahan or not. Ride bicycle lor.
Agree…action will become most effective sound of rakyat
Cars sold last year was about 600,000. Means there were about 600,000 Malaysians who bought new cars. This year, if we can persuade about 600,000 would-be car buyers to hold their purchases until next year at least, I think that would hurt the govt a lot and make them hear our voice. 600,000 from 30 Million people is not that many. Show them the power of the consumers. Come on let’s start the campaign. No new car purchase year 2014.
So, if say the fiscal position is not good, means the excise duty will be here la.
In other words, we ain’t gonna get rid of excise. Carry on folks.
Im confused.. isnt the excise duty supposed to help local auto player.. now they said as one of the main source of revenue? Kena con ka? Now very clear this govt has little interest in developing local auto industry.. why? Conflict of interest.. if local industry progressed means less tax revenue.. might as well leave the it to current sorry state, force people to buy imported car and pay tax… noble intention to have rakyat car gone with the time.. now its a huge con play to squueze people
Actually it served as both purposes, to generate revenue and protect the local. However as the industry and revenue growing, the gov has become hugely rely on this industry as 1 of their main source of income(just like the tax on gambling).
If gov can finally reduce or even cancel this tax, I bet there’ll be another policy to cover this deficit.Rakyat still suffer in the end.
So, buying national cars are not patriotic because paying less to the gomen?
Buying imported cars is patriotic because paying lots of taxes to the gomen?
No wonder can see lots of imported cars in the BN ministers’ houses, they must be very patriotic.
So come on, stop blaming the BN for being corrupted, their true intention is to help gomen to collect more money for taxes!!!!!
Also stop saying the BN’s ministers are brainless!! They are most probably the cleverest bunch of ministers in the world to be able to come up with this twisted way of collecting taxes.
go BN
So bad… they earn so much of tax revenue!
Buy proton also die… give them $$$
Buy other brand also die…
Better open kangkung sdn bhd produce kangkung car lol…
This really is a no brainer announcement. ‘Open to possibility…’. Its like opening a letter from Reader Digest stating that you are the selected one with a GUARANTEED OPPORTUNITY not CERTAINTY to win RM1mil. Boleh caya ka?
Excuses! Every year the government is “not making money” and that the country’s coffers are “in the red”. So if this goes on for another 50 years, do we have to still continue paying excise duties?
Tanah air kita amat kaya dengan sumber Alam. Kalau duit diguna tanpa bazir..saya caya kita talk perlu bayar cukai ..malah ada elaun ambil juga.
So long BN rule. You expect the same excuses for next 50 years, and on.. and on.
There are many dumb out there make their right choice. So prepare to stretch your pocket further… a long 5 years of suffering. Those long house people in east MYS should wake up.
“Possibility to reduce duties if fiscal position allows”……the way the G is run now will never allow for our fiscal position to improve…..in another words….NAP will not do S**** to help anyone to buy cheaper cars!
AT the way G is spending, how to improve fiscal position? A cow also will be milked to death! If G can tackle the inefficiencies found by the Auditors General, I think the fiscal position will be improved 2-3x.
Until gov talk bazir lagi susah daripada seorang seorang pelajar nak dapat telor dalam ujian
Those who likes to question our car price tax structure PLEASE TAKE NOTE THE EXCISE DUTY!! 65%-105%. Don’t make fool of yourself again.
Pui Pui Puiiiiiiiiiii
if our country is in deficit, why still give out BR1M? start saving from everywhere. dont save here spend there. it become meaningless.
Bodohla. Bantuan rasuah tarak kaitan dengan cerita ini
Saudara, BR1M untuk rakyat yang memerlukan dari rekod kerajaan. Tak kiralah sama ada rakyat tersebut mempunyai seorang pemandu yang memandu Merc S-Class yang menghantarnya untuk mengambil BR1M. Yang penting rakyat tersebut memerlukan BR1M. Syukur.
OK, got it. If gov is poor, car price stays high, if gov is less poor, car price may go down.
Pikirla.. Mana gov do dunia ini tak poor.
Gov poor…Gov officer kaya…rakyat still poor
Gov rich…Gov Gila Kaya….rakyat lagi poor
Knew it already, another pusing2 get u no where policy yet again.
Government should make more money from automotive industry company tax, by creating competitive and friendly business environment. Not forcing the poor Rakyak to fork out big sum of money for buying car…That says Gov will discourage good public transport so that people will continue to buy CAR???!!!!!!
don’t make promises if u cant fulfill it…this is what our government had been done..they already know about the economy condition but still want to make promises…they just want to challenge with opposition that they also can do it..some of them dont even know regarding the taxes they had implied..so “jilat balik ludah sendiri’ la..they make comparison price reduction between cbu and ckd some more..aiyo come on la…
Pads mass ITU.. Kalau u nak bulan says pun boleh JANJI bagi u. Sikarang haha.. Cerita sang kancil n buaya. Dah lupakah? Anak I pun tahu takkan u orang tak sedar.. Ishh ishh… Hahaha
Hen and egg story . Which come first ?
Lower the taxes . GOVT fiscal deficit will get bigger . This will becoming a never ending story . Moral of the story. MALAYSIA PEOPLE will Suffer !!!!!
I really like the phrase, “If the government fiscal position improve…” then may revise the excise duty…it means no hope at all… since when the government fiscal position improve ?
This is not the right way to say iF, it means they have no target at all to improve the fiscal position, no minister ever being remove for non performance, and there’s no responsibility ever in our government agency people being sacked for non performance, even corruption never been penalized, how are we going to “if fiscal position improve…” ??? The whole NAP like No Policy at all..and we got to wait for another session to decide on the fuel for euro 4 etc.. long way man..
all this just a trick, as G what they always impose is HOPE or WAIT, every year even decade they always talk this shit again and again, repeat and repeat
With all the leakages and mega projects by you know who….of course the country’s fiscal condition is down the toilet.
Dok menunggu macam nak rak NAP baru ni sampai berbulan2. Sekali bila announce…ek elehhh. Basic je. Nothing solid, no time line, no action plan, just a very generic wish list. Waste time je menunggu. Nak jadi hub EEV but Euro 4 fuel implementation pun xde target date. Baru terhegeh2 nak panggil consultant buat study. Apa da?
All the completed documents has been taken away by the smart guys in G and left the office. Left only stupid people with no idea how to do the work.That’s what you see now.
According to the data, it shows that on 2013, more people are buying local car than other years. You can see the lower revenue of import tax but higher revenue on excise and sales tax. It shows that our local car are heavily tax to. Sorry for my bad english.
bro, sorry to say so. actually the drop in import duty maybe caused by hybrid car as well. as a result, rakyat buying more hybrid and local cars that cause the drop of import duty.
any how, the usual kangkung jib still kangukung style.
looks good outside, but empty inside…sometimes u can find worms living inside too.
Well, that dude whom is saying cannot reduce price, what car is he driving?
“the government will consider looking into the possibility of gradually reducing excise duties.” we must pray for this to happen accordingly. if drastic change it may cause our current car so cheap when do trade-in or no value at all.
Wow! That’s the problem with you macai. We must PRAY, we must HOPE, we must TRUST. Let me give you a hint, God helps those who helps themselves. No amount of PRAYING will get you anywhere. The Minister has sold you a bag load of crap and you sir still bought it thinking it is gold. If there are no plans to action then it’s all talk. So go on PRAYING!
did u guys watch the TV ads where the G try to make the ppl to accept and understand the need to cut petrol subsidy for the good of the nation?
Here is my analogy.
“I take a knife, slash your hand and say is good for you because it will bleed out the bad blood”
“review fiscal position” = never ending story…
Hahahahaha… Janji Ditepati Mah!!!
stop buying new cars for 6 mth..see what happens
Malaysia goverment rape the citizen everyday.. stupid brainless najib kangkung bn….
naik sana, naik sini, goverment suruh rakyat bijak berbelanja dan cari duit lebih.
kurangkan excise duties, goverment mau bijak berbelanja and cari duit lebih?
What is excise duty?
An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is a tax on the production or sale of a good. This tax is now known as the Central Value Added Tax (CENVAT).
“Though the collection of tax is to augment as much revenue as possible to the government to provide public services”, over the years it has been used as an instrument of fiscal policy to stimulate economic growth. Thus it is one of the socio-economic objectives.
do our G use this TAX right ??? See our Public Transport compare to Singapore and Hong Kong ? can u use MRT to anyway u one just one MRT (we have to USE LRT, KTM, MORORain, and more!!!!) or using TouchNgo 1 cards to any Public Transport ? G compare lah! alway think u doing something but all money had use to family and friends ald! so sat BN
If ur G cannot do it, just let go. Let the other G do it.
Babi NAP + No Automotive Policy = Tipu All The Way!!! Sial!!!
Goverment can not give up the excise duty and cronies also can not give up the AP.
So, who is the one to suffer? 47% of the rakyat has asked the BN to maintain as per status quote.
Good ti hear that and keep sucking the poor rakyat to enrich the cronies. Hidup BN.
Tak suka, pindah la!
APs make sooo much money, how to give up?
Better than printing money.
Wait until the world stop spinning also cannot give up!
Since so much had been said (or crapped) by MAI but nothing really concrete can be done on the prices of MOST cars. What we as consumers can do is to buy less. We don’t really need to splash the cash when we are not getting our end of the bargain do we? Unfortunate for all car lovers but yes, that is the only option I guess.
Bored of lame excuses all the time. No hope on them!
5 years to come up with this load of crap?!? Obvious lack of substance, all the important and crucial issues that can help the burden of the ordinary rakyat like AP and exsice duty…. status quo or simply say need more study. What then have MAI been doing all these past 5 years?!!? Gagi butakah? I wonder how many staff does MAI employ and how much they have paid to overpriced consultants just to come up with this rubbish??!
As one journalist in a local daily said “Thai Government change parties many times over in the last 20 – 30 years but their Policies don’t change. But in Malaysia, we have one Party Alliance ruled this country since Day 1, but policies keep changing all the time.”
Soon – RMB will be 1 to 1.
Now it’s 1.85
Keep this NAP policy and soon other countries will be well ahead of us.
It will be too late then – and some of us, already Pindah and driving nice cars in other countries.
Malaysia is a country rich with natural resources and also human resources. If the country was managed efficiently and cleanly, I don’t think that we’ll need to collect so much tax money/excise duty from cars as we’d be making money from other sectors instead. If the nation’s money was spent wisely, we should have enough money to channel them back for the good of the rakyat. Instead, people are spending their hard earned money on taxes to fund the Gov for things that are being questioned. On top of that, we are over charged for cars we need as a necessity because the public transportation is just not good enough at the moment. It is the duty and responsibility of the Gov to make the lives of the people easier and NOT harder. That is why they are put there to run the country. If wasting money and taxing your people more to clean up their wrong doings is the way of running the country and the automotive industry, then any tom, dick or harry can do it. So until the Gov get their act straight, don’t expect too much from NAPs.
The Government is very smart and reduce the excise duty (30% only)before the GE 14 (2008). The sweetenner will con the rural folk again during the GE 14.
PR reduce 20% excise duty per year and in total 5 years the duty tax will be abolish (0%) and toyota camry only cost less than RM 90K.
Only the stupid fellow will get con by the Nasji’s manifesto.
Hidup cronies and at the same time, mengeringkan pocket rakyat.
Inilah manisfeto yang menipu.
Only BN macai’s will still believe your story. Come before GE-14, empty promises will be made again to lure macai’s for their votes and after that, they will ask you to wait for another 5 years for the reduction of car prices due to unfavorable fiscal position. History repeats itself!
Same old thing. Just a bit change here and there. Walah, new policy but still with same hidden agenda.
Not car companies pay! We pay you stupid rotten piece of kangkung!
apa lah bodoh sangat ni polisi macam ni….putting a lipstick on a pig…it is still a pig
Instead of putting tax burdern on rakyat why dont just open Malaysia for outside investment? More profit like this.
No choice, bee end um no selfish
tutup proton, ubah perodua..
my fiancee saga flx premium rosak lampu dlm. suda tukar masih rosak lepas beberapa hari.. then ABS not functioning without any reason after 1 and a half month. then, they provide with weak car battery. mau service 3 bulan pun belum sampai suda mcm2 masalah. -___- PROTON?