MAA hopes excise duty exemptions for CKD hybrid, electric cars will be extended in Budget 2015 – report

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Above: Proton Iriz EV prototype in South Korea

Budget 2015 will be tabled in Parliament this Friday, and ahead of that, the Malaysian Automotive Association (MAA) hopes the government will extend the excise duty exemptions given to locally-assembled (CKD) hybrid and electric vehicles, reports The Star.

The latest iteration of the National Automotive Policy (NAP 2014) officially brought an end to duty exemptions for all electric vehicles (EV) and hybrids with engines displacing under 2.0 litres.

The tax breaks are now reserved instead for those that are assembled in Malaysia (this time with no engine size limitations), with those for hybrids set to expire on December 31, 2015 and those for EVs set to end on December 31, 2017. Only two cars currently qualify for these tax breaks – the Honda Jazz Hybrid and Mercedes-Benz S 400 L Hybrid.

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Above: Honda Jazz Hybrid – the first hybrid vehicle to be assembled in Malaysia

“What the MAA is requesting is for the time period (for the tax exemption) to be longer so that it can be more viable,” MAA president Datuk Aishah Ahmad told StarBiz, adding that she hoped there would be incentives to encourage electric vehicle- (EV) related infrastructure, like the setting up of more charging stations and reductions in battery costs.

MAA statistics say 51,125 vehicles found Malaysian homes in August 2014 – a mild leap from 51,106 in the same month last year – while 444,534 units were sold year-to-date in August 2014, representing a 2.7% jump over last year’s 433,025, The Star reports. A few months back, MAA raised its 2014 total industry volume (TIV) forecast to 680,000 units – 10,000 more than before.

So what can we expect from Budget 2015? Last week, Malaysia Automotive Institute (MAI) CEO Madani Sahari said that Budget 2015’s auto-related matters are likely to be aligned with NAP 2014’s aspirations. Budget 2015 is also expected to yield a list of zero-rated or tax-exempted items with respect to the upcoming Goods and Services Tax (GST) – will our petrol and diesel be GST-ed?

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Jonathan James Tan

While most dream of the future, Jonathan Tan dreams of the past, although he's never been there. Fantasises much too often about cruising down Treacher Road (Jalan Sultan Ismail) in a Triumph Stag that actually works, and hopes this stint here will snap him back to present reality.

 

Comments

  • Excise duty exemptions for CKD hybrid? Why not just excise duty exemptions for ALL?

    Really feel like flipping tableS when I see these new stupid policies.

    Well-loved. Like or Dislike: Thumb up 85 Thumb down 3
    • Anti-Establishment on Oct 09, 2014 at 11:31 am

      For your economy bestsellers like the Vios & Jazz/City – you may be surprised to know that excise duty is not that big. Looking at the price difference it’s 20% so you have to ask yourself one question – are the high car prices solely tax or more profit margin than anything else?

      Like or Dislike: Thumb up 3 Thumb down 0
      • Same L0rrr on Oct 09, 2014 at 12:43 pm

        Our Prius C used to be excise duty exempted – RM97k. Now it is RM153k.

        Thanks to government and protection king – Proton.

        Like or Dislike: Thumb up 5 Thumb down 0
  • autobarbarian on Oct 08, 2014 at 5:59 pm

    good news for Mercedes. Dato and Datin can start queuing up for the S400L Hybrid again.

    Like or Dislike: Thumb up 21 Thumb down 0
  • Reason after Reason & Reason after Reason.. Car price wouldn’t go down but keep increasing…

    Last time Govt claim, can not reduce car price coz we have Fuel Subsidy but this excused can’t use anymore, it going to abolish near future.. But Govt already have/find new excused – “Protect National Automotive Industry”..

    Then intro GST, Govt told to whole Malaysia after implement it, car price would drop by 4%. But now it look like Car Manufacturers has find new excused not to reduce car price – “Exchange Rate”..

    Govt play around with Protect National Automotive Industry – Not to reduce excise & import (CBU None Afta members) duty…
    Car Manufacturer play around with Exchange Rate – Not to reduce car price & increased value (Spec)…

    Malaysia Oh Malaysia….

    Well-loved. Like or Dislike: Thumb up 87 Thumb down 2
  • BeemerFreak on Oct 08, 2014 at 6:09 pm

    Why not just extend it indefinitely….stupid policy to implement for 2 years then take back. Clear lack of foresight and planning. Stupid people sitting in the office.

    Like or Dislike: Thumb up 28 Thumb down 0
  • AVH (Member) on Oct 08, 2014 at 7:16 pm

    “MAA hopes excise duty exemptions for CKD hybrid, electric cars will be extended in Budget 2015”

    ….MAA hopes excise duty exemptions for CKD hybrid,….

    ….MAA hopes excise duty exemptions

    ….MAA hopes

    ….Hopes

    Wow, everytime when theres a slight hint of price drop, ‘hope’ is the word often used.

    And why is there an expiration date anyways. Toyota is already witholdings its Camry Hybrid CKD intrduction because of this, and probably so is every other car manufecturer. Mercedes actually stop selling S400 hybrids, in anticipation of a probable price height after Dec 2015.

    I suspect the person who proposed the excise duty exception was probably saying something in the lines of : “We shell give the citizens excise duty exception…..[Crowds cheer]…..until Dec 2015, because I am a merciful overlord”

    Like or Dislike: Thumb up 11 Thumb down 1
  • cendol (Member) on Oct 08, 2014 at 7:23 pm

    Its just like Oreo biscuit, Now you see it, Now you don’t
    Or rather like roti prata, Policy flip here flip there.
    Hopefully I can get A6 Hybrid this time around-

    Like or Dislike: Thumb up 9 Thumb down 1
  • Uncle_Sammy (Member) on Oct 08, 2014 at 7:39 pm

    How hard is MAA fighting to get these exemptions? Methinks highly unlikely they can get their voice across before the AP holders start crying again.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Semi-Value (Member) on Oct 08, 2014 at 9:36 pm

    good…can buy more s class

    Like or Dislike: Thumb up 3 Thumb down 1
  • M’sia can have the excise duty exemptions are simple…change a new government next election!!!!!

    Like or Dislike: Thumb up 12 Thumb down 3
  • abdul Munir on Oct 09, 2014 at 3:27 am

    Here we go again year after year hoping that
    car prices will head south.
    Fat hopes guys with people from MAA & MAI
    don’t expect anything forthcoming :(

    Like or Dislike: Thumb up 4 Thumb down 0
  • Yours Faithfully (Member) on Oct 09, 2014 at 6:51 am

    Quote :Only two cars currently qualify for these tax breaks – the Honda Jazz Hybrid and Mercedes-Benz S 400 L Hybrid.

    The next one coming is the E300 Bluetec Diesel Hybrid.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Honda guy on Oct 09, 2014 at 7:30 am

    So Crz hybrid and civic hybrid was never under tax free bracket ma? Why is it quite cheap la?

    Like or Dislike: Thumb up 0 Thumb down 0
  • sigh….. that’s why education is so important…

    Like or Dislike: Thumb up 1 Thumb down 0
  • Jilbaber (Member) on Oct 09, 2014 at 9:35 am

    It’s just a hopes meh…in similar way politician said “It’s in Manifesto meh” during campaign…so don’t expect too high le..

    Like or Dislike: Thumb up 2 Thumb down 0
  • Lauyiahchia on Oct 10, 2014 at 9:47 pm

    If I buy the S400 Hybrid now at RM500k then I sell to towkay at 30% below the new car price after 31/12/2015. Make profit at least RM200k and nobody can say I under-table lor…(Poof!!! Wake up from the dream)

    Like or Dislike: Thumb up 0 Thumb down 0
  • Time and again I will say NAP 2014 which “supposedly” to promote EEV, will actually kill hybrid cars. How can such a policy announced in mid Jan to be “backdated” the effective date to Jan 1st, and only valid for 2 years? Investment of a car assembly line is a major decision that no company will take it lightly. From strategic planning till actual actions normally take years. This couple wil the relatively small market of Malaysia, which car company will really bother to look into it? Jazz hybrid was already locally assembled before NAP while Mercedes move was quite a surprise. But look, have you really seen any new hybrid car on the road this year?

    Government still more interested in protecting the AP cronies, that they need time to “review” again on when to abolish it.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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