A “Youth First Vehicle Scheme” was proposed by Umno youth chief Khairy Jamaluddin last week, where the idea is that young people earning under RM4,000 a month can buy their first car without paying tax on it. This will allow a young person just starting out to be able to afford a new locally-assembled car with less strain on the person’s finances.
But how much impact would a duty-free first purchase actually have on a first time car buyer? We decided to calculate how much being able to buy your first car duty free would save you every month in terms of monthly installments, based on a 10% downpayment, 3.5% interest and a seven-year loan structure.
We pay three different kinds of tax on our cars – import duty, excise duty and sales tax. All three types of taxes are exempted in duty-free zones like Langkawi, so we decided to compare Peninsular Malaysia and Langkawi prices for each car to get the effective duty-free price.
For Perodua cars, we had to compare Kota Kinabalu and Labuan prices because we could not find Langkawi prices on Perodua’s website. Both KK and Labuan prices will have East Malaysian transport costs built in, so it’s a more appropriate apple-to-apple comparison than comparing Peninsular Malaysia and Labuan prices.
We picked a few Protons, Peroduas, Honda and Toyotas for this exercise, with the cheapest and most expensive variants of each model included to establish some kind of ‘range’. Looks like you’ll be able to save between RM30 to RM330 per month, based on the choices of cars above.
The price difference between the normal price and duty-free price of Proton and Perodua models are – as expected – not that huge, with the lowest being 4.25% and the highest being 13.9%. But what’s surprising is that the gap between the normal and duty-free prices for the Hondas and Toyotas are quite different.
The City and Jazz generally have a 17% gap between the normal and duty-free prices, while the Vios has a 25% gap on average. Does this mean a Toyota buyer is paying more taxes on his car, though? Maybe Honda has more incentives because of more localisation, or maybe not. It’s hard to know why. You should treat the table above only as a guide, because we don’t know how much the transportation costs contribute towards the Langkawi prices.
A few years ago, Thailand launched a first-car scheme, under which the buyer had to be at least 21 years of age and own the car for at least five years. The car had to be completely built in Thailand and not be worth over one million baht (RM102k). Its engine had to be smaller than 1.5 litres, and the purchase had to take place between September 16, 2011 and December 31, 2012. Once these conditions were met, the buyer was eligible for tax refunds with a ceiling of 100,000 baht (RM10,200) per unit.
Thailand’s scheme didn’t quite work as intended, leaving more than 100,000 indebted customers defaulting on their loans because they couldn’t actually afford the cars in the first place, Reuters reported. The cost of purchasing a car may have become cheaper, but the benefits of travelling with your own personal roof over your head comes with higher costs such as fuel, service, insurance and tyres, just to name a few.
The first car scheme’s tax breaks cost the Thai government US$2.5 billion (RM8.37 billion), according to World Bank estimates. How much does the Malaysian government earn from car taxes every year then? The grand total is RM9.8 billion in 2013, comprising of RM480 million in import tax, RM7,308 million in excise duty, and RM2,039 million in sales tax.
Malaysian household debt levels are among the highest in the region, and giving fresh grads more of an “excuse” to buy a new car may be bad for their financial health – for example, removing RM1k a month off from their take-home pay means that they won’t be able to afford a house, which is of course the biggest complaint young people have these days.
Also, lower car prices won’t mean they’ll have more money to spare – there’s the likelihood that buyers will just max out their budget with a more expensive car. Will a First Car scheme work for Malaysia? Let us know what you think in the comments section.
Looking to sell your car? Sell it with Carro.
Who cares about youth? Ever thought about poor folks ferrying 3 kids on motor bike to school? Whos gonna fight for their rights?
It’s for their votes which is so blatantly obvious.
Why doesn’t he talk about improving public transport? This way they don’t need a car and can save even more.
Liar. Who is LIAR?
Fresh in our msian memory that the PREVIOUS Genetation HONDA JAZZ full spec only cost MYR 36000 at LANGKAWI and hit 500 booking in a day.
It totally not make sense of MYR 70000 DOUBLE UP for the new gen, pls filter the data prior distribution.
36000 x2= 72000
2013 tax free honda jazz 36000
2014 tax free honda jazz 70000
NISSAN ALMERA only cost ~ MYR 45000 in US.
Now you see!!
Foreign cars are expensive thanks to the tax (a.k.a. PROTON PROTECTION).
Our Vios is actually cheaper than Persona!
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Dear teamsleepnine.
your Engrish i cannot brain..BWAHAHA!
In the beginning, it was for Proton protection, not any more!
Now, they are desperately needing the people’s tax money in cash (paid by the banks) and then the poor people spread the tax into 7-9 years period.
Why must PROTON’s name there?…
Nothing to do with it ler kawan….
Even if VIOS is cheaper than persona but the spec is still same, I rather buy a picanto than a VIOS. In term of space, both car is just lebih kurang except for the rear boot space.
Hey bro,you better buy the Iriz than the Picanto.Room space,safety,power belongs to the Iriz.Think twice!Cheers!!
Sorry to proton. In this stage, Proton still cant defeat KIA in my heart. Sorry to Proton.
Lol any car ckd in boleh still has excise tax..oni cbu car are exampted from excise tax. ckd oni exampt from import tax n sales tax…previous gen jazz is cbu (later ckd)..this is stated in Excise Act 1976
what you talking about? we talk about all extra pay in a sum, that’s tax; Or paultan statement is confusing us?
IMPORT DUTY CBU:30% CKD:10%
EXCISE DUTIES: from 75%
SALES TAX: 10%
If you would like to breakdown and talk about TAX alone -SALES TAX, which it carry 10% applicable all CKD CBU.
WHY the TAX in CHART posted above not a standard 10% apply all brand CKD CBU???
AGAIN, WHO IS LIAR???
I you talking about TAX alone which is SALES TAX 10% across all.
WHY TOYOTA VIOS J MT taxed 26%=myr19000
IN FACT Without TAX those B segment (for 3rd country vehicle) only cost around 2Xk-45k, eg HONDA CITY, HONDA JAZZ, TOYOTA VIOS, NISSAN ALMERA, SUZUKI SWIFT, etc…
WHY is NOT SALES TAX 10% as declared? WHY DOUBLE STANDARD?
Gentlemen, please go to dutycalculator(dot)com and tradecarview(dot)com to calculate the imported used vehicles into Bolehland. I have tried to calculate a used Subaru Impreza WRX valued at $14K (RM44K) but the tax alone is worth RM93K. Total car price is RM145K. Ha-ha-ha
Khairy is having a puberty
This shows very clearly that this ass$$$$ can only borrow failed ideas from others, never able to innovate from itself cos he is too thick to think good. Never ever able to and intend to do anything for the people, this ass$$$$ will want to confuse and injure the masses to get a name for himself just to show that he got a mouth, a big one that is! But we the people know better.
ass$$$$, go get a real life job, instead of being a leech. Karma will look for you and the rest of your gang sooner than you thought.
Last time he aksi a lot. He thought he was the DPM. Then Mahathir kicked Badawi out. Khairy crawled under a rock. Now, he is out again spewing venom and causing hatred amongst the kaum kaum.
Khairy, you should declare all your assets and cash to the public. Public want to know how a small kid like you, cannot even piss straight, can have so much of money.
only if public transport dont keep increasing their fare, better still, without even announcing it to the public before hand despite the high percent increased in fare..
Mat rempit gets promoted !
If KJ has a functional brain, he would have use the money to improve public transportation, widen the roads, fix the god damn traffic lights and ensure a strict law enforcement on errant drivers who disrupt traffic flow with their haphazard driving and parking senses.
Then only we, the normal rakyat will feel less urge to buy cars. The number of cars on the road are growing each day and this beachhead turtle is promoting more car ownership by meagre tax cuts.
No tax means less income for the gomen. Less money for education, infrastructure, health etc. And now the gomen have no money n yet still want to cut tax some more? Not so smart as being hyped
my version is, no tax means less income for cronies, be-end ministers, and less luxury goods for the hippopotamus….
The reason they tax high, high is because there are lots leakages of money in the B.N. Gomen, they should fix the leakage 1st! Once the leakage is fix, then they can start to see the excess money save and therefore can reduce tax after than.
For that to happen, many of them should be thrown to jail 1st.
govt stupid
If you think that letting the G rip you off is right, feel free to contribute to their tax and support local cars. The G should allow a double tax system for people like you who like to contribute more tax(patriotic mah!) and a tax exemption system for the rest of us
who cares if the targeted youth max out their budget if the skim get carry on,because ultimately at least people can drive a better,finer,safer car,rather than a secondhand viva kancil saga
its about improving our standard of living
This is exactly the mentality that ruins thai programme, youth like you want to ‘improve’ standard of living. lol. since when standard of living ties to car?
Since when proton is introduced. If no proton, standard goes up
whole nation has to suffer exorbitant priced car because of few youth dunno about financial planning.
we have to pay extra 30k for a honda city just to avoid few idiots over spend their money
way to go malaysian,masa depan cerah
standard of living doesn’t ties to car,yeah rite
you still driving 1992 kancil?
if not,why you change?kancil is perfect for point A to B no problem
You live in stone age?
Think deeper! It’s somehow true that owning a car does increase your standard. But maintaining a car is another issue. Petrol, toll, insurance and service, all these would easily cost you few hundreds per month. If the government is smart enough, the public transport system would have been improved. Taking public transport would definitely make a lot of saving compare to owning a car. With the saving, youth could have a greater purchasing power other than just spending on just maintaining a car. This is called INCREASE in standard of living!!!
Ever thought of contraceptives? Seriously if you can only own a motorbike why breed that many kids? You obviously can’t afford a good quality of life for the children so why make the children suffer? Stop at one child. Use your brains. Just cause you’re poor doesn’t mean your children have to suffer. Tak mampu jangan beranak ramai la.
you sir are being ungrateful with the god gift. This matter of children, marriage, earning are the same as death, they are unknown to us. No one know the future.
Yeah, but they could definitely learn to use condoms.
moral of the story : dont have so many kids
Don’t Manja Manja kan the young generationlah…take MRT if you can’t afford to buy a car..already too pampered with smartphones, iPad etc etc..grow up lah…
He is the sports & youth minister so he speaks for youth and sports la….
Swear to the right ministry
You… and ppl like you who always ask who to do this, who to do that… but you…
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That..is the d*mbest F*CKING opinion i have ever read in my entire life. Please don’t reproduce.
Lol.. Didn’t mean to annoy anyone.. Peace. :)
Basically what I meant to say is that some incentive (tax exemption, etc) should be given for consumers to choose local makes instead of foreign ones. Those who chose to buy foreign cars that are below 1600cc should be taxed higher because there is an alternative local product in the same segment. This will create a win win situation. Local cars will be cheaper and tax revenue will not drop drastically.
see. die die want to buy foreign cars.
great idea. local is much cheaper to maintain as well. youth with small income should not be allowed to own fancy cars beyond their financial means. If they still want something fancy, there is this ‘abang’ shop to ah beng things a bit.
I think the tax exemption scheme is a good idea. However, it should only be implemented for foreign makes i.e. everything besides Proton and Perodua. This will give an incentive for consumers to purchase foreign cars instead of local makes. Furthermore, the tax on local cars which are less than 1600cc (Saga, myvi, saga, myvi, saga.. etc) should be increased. This way the tax earned will still be roughly the same and foreign models can achieve economies of scale. :)
haha take it easy bro, he was just having a bad day
Gotta thank our “terrific” education system for producing guys like Jxn!
Haha… There actually is an element of truth in your statement… Our education syllabus is indeed tailored to instill values of patriotism into young minds.
You mean brain washing like National Service?
I think the tax exemption scheme is a good idea. However, it should only be implemented for local makes i.e. Proton and Perodua. This will give an incentive for consumers to purchase local cars instead of foreign makes. Furthermore, the tax on foreign cars which are less than 1600cc (City, Jazz, Vios etc) should be increased. This way the tax earned will still be roughly the same and local models can achieve economies of scale. :)
I concur. Please save our gene pool.
I smell BS
maybe you are trying to be sarcastic, but enough protection given to local brands. we all talk about globalization, please give us an open market!
Support kaw kaw, if want to produce car please make it competitive enough, not play a role in local market only.
malaysian are FORCED to buy proton and perodua in this way!
i was forced to own a proton before and this humiliation made me work so hard, now i am so proud that i am capable never never go back to proton again, so do my kids and my grandchild.
let proton rottened in deep sh*t and dont bother to look at them at all.
Well, look at the bigger picture. Proton probably employs about 10,000 to 12,000 people. Not including the dealerships and what not. So these people drive the economy as well. Please open your brain and think of cash flow of a household and then relate to macro economics. If you can’t find the relation, please do study a bit more. It’s gonna be too long to reply. And hence, that’s why proton cannot go anytime soon. We need them. Despite all your desire to have expensive car for cheaper price, Proton is needed in Malaysia. Losing out proton means there might be huge number of unemployment that needs welfare and benefits to survive on month to month basis. So use your head….
Someone shoot him before he time travels back to the 1980s and tell a young Mahathir his brilliant plan.
LOL.. yeah.. am a fan of the DeLorean too.. but if i could get back in time.. you know how’s going down first.. by the way KJ, r u politicians retards? Do you guys realise this is not ATlantis.. there r people struggling just to keep afloat living in despair.. go help em out & you’ll get my vote..Pls do what’s neccessary & forget about the accessories..
I’ll be back
its a 2 sided sword brah
benefit of such plan is to help local producer,but downside is we artificially promote the inefficient player.
we used to support proton for many many years,almost all household used to have a proton in their home.But help don’t come for free,we suffers for many years using inferior product,gas guzzling and unreliable cars with limited safety equipment.
enough is enough,just liberalized the car market,let the local car manufacturer LEARN FROM COMPETING, if they can’t succeed,why should we be continuing to support them? anybody support you when not being competitive or productive in your office?
and…who say malaysia must have own national car? making cars is not our strength all along.
Well, look at the bigger picture. Proton probably employs about 10,000 to 12,000 people. Not including the dealerships and what not. So these people drive the economy as well. Please open your brain and think of cash flow of a household and then relate to macro economics. If you can’t find the relation, please do study a bit more. It’s gonna be too long to reply. And hence, that’s why proton cannot go anytime soon. We need them. Despite all your desire to have expensive car for cheaper price, Proton is needed in Malaysia. Losing out proton means there might be huge number of unemployment that needs welfare and benefits to survive on month to month basis. So use your head….
Let proton burn itself out.
Because of proton every body pay for it.
Ladies and gentlemen, presenting Jxn, the by-product of “excellent” education system.
Jxn – Did U take your medicine on time? Maybe you should know how many percent going for local product vs Jap/Kor product.
Unless U = P1/P2 sales person.
Not we not supporting P1 but is due to it quality also price is too high for Malaysian as Product of Malaysia.
Lol… You have a good albeit mean sense of humour… ;)
To be very honest, I am just a final year medic student (pelajar tajaan kerajaan)… I have no working experience and neither am I a P1/P2 sales person… However, I believe that Malaysians should show a little more support towards local products be it cars, electronics, etc. Unfortunately, it has become a trend nowadays to ridicule things made in Malaysia. This habit is especially rampant among the younger generation. Hence, it is important that the youth first vehicle scheme should focus on increasing the popularity of local makes among the younger generation. A good way to do that would be to remove the tax on local models and increase the tax on foreign ones. Peace.
Btw, before I get shot at (again), let me state that: Yes, I drive a Persona. Of course this was a gift from my parents but the point is; I believe in practicing what I preach. Cheers. :)
I honestly think your idea in focusing the first vehicle scheme to local cars are good. The youth shouldn’t max out their debt at such a young age.
The problem that people are having with your idea is that you are suggesting the government to ADD MORE tax to the current EXORBITANT tax on imported cars.
its just make me feel ashamed that u jxn declared urself as a medical student.later when u become a Dr,ull know how much our gov love their people as eventhough ure a doctor,ull b very grateful to have a persona and a plain flat with ur salary.that is to tell u what nowadays Gov Dr can afford,not even other rakyat who doesnt have proper work eventhough with degrees in their hands
Try ask your parents how much were cars before the tax was added. Don’t forget to ask them why the locals ridicule local makes too! Maybe then, you will realize.
“pelajar tajaan kerajaan”
Eating popcorn
Haha, no youths would buy local car. So it aint gonna happen.
Umm, the youths wont but their parents will, also there are hondas and toyotas in there so i dont know what you are on about.
Smart parents also won’t buy proton cars. Will you buy a car with 5% savings or a car with 25% savings?
Agree. Langkawi people are smarter than us!
I will buy whatever i am able to afford, nobody gives a rat’s a*s about how much i can save.
If a ferrari has 90% saving but still cost half a million whats the point if you cant afford it anyway.
if ferrari 90% save i buy ferrari. new car price is less then 5 million, mean if 90% save it not gonna cost more then half million……matt…..
Exempt ALL !!
Max the budget, for sure…
Overall, i dont see its bring any benefit for youth. Most youth they prefer they have free education /half subsidy education fees. If this program running, our country’s youth brankupcy rate sure getting higher.
He’s supporting debt for sure…
i think its absolute ridiculous to buy a car in ur 20s if u r making less than 3k. Even though ur monthly payments can be as low as RM 500 the maintenance of the car can be huge. Pls dont make the mistake that most youth malaysian do which is buy a car(brand new myvi or saga mostly). We do hv public transport which is crappy i admit but it may safe u a fortune or get a cheap 2nd hand car for around 20k or use ur parents old cars. Dont get urself into a useless car debt.
No doubt,agree…if we dont afford to buy a new cars we can consider to buy a cheap and reliable cars depend on your budget,nowadays malaysia got tons of good second hand cars comes with reasonable price just to make sure find a good dealer or owner.For a youth i recommend buy a secondhand cars like kancil,wira or sunny etc that comes with cheap maintenance and better fuel consumption.Try not to involved in bank loan especially buying a new cars,we still young IF WE DONT HAVE THE ABILITY TO PAY THE LOAN,BETTER DONT STARTED(BUY) IT.Dont mind the people how they look in your cars.Remember alots of rakyat still carrying their two children even more on a single bike,we should appreciate we can affort to buy an used cars.
PS:I never own a new cars but i do have an old mighty saga aeroback,still going strong ;-)
Good old Mitsubishi days. With a good mechanic, dirt cheap to service too.
Check out Perodua’s website, Axia’s service cost is not what I consider cheap, and that’s their cheapest entry level model. What’s the point of saving fuel if all is lost to cutthroat service cost?
Worse, Perodua lies to us saying they’re giving better value with 5 year warranty. It’s only better for them cuz they can continue slaughtering us. 3 year free service, even if only for engine oil, filter and labour, is still much, much better value for us consumers.
ah wai dgn shaq ni bagus lah! (Y)
Aye. 20k is pretty high actually, under 15k can already get lots of sensible used like Viva, Myvi, Corolla SEG.
People should learn to drive manual too. Don’t be lazy, traffic jam is no excuse to shun it. European roads have traffic jam too, yet they can drive, men, women, young, old. Auto is seen as luxurious rich men’s gearbox. Malu lah we so young, so healthy but dunno drive manual.
Malaysians are ranked pretty high among fattest Asians, if not Aseans, so driving manual is good way to slot in exercise in your busy life. Not only you don’t need to pay to exercise eg going to gym (farking expensive), it saves money to buy (also means less to lose in depreciation), better fuel consumption, cheaper service, more reliable, disciplines you to be better driver too.
Got a Dr going viral he say he feel cheater by paultan cuz he bought Iriz, when I read, most his bitterness comes from CVT being crappy gearbox. See, none of his issues would’ve happen if he drives manual. That’s the price to pay for convenience during traffic jam, but for all else manual is superior. Deal with it!
Only stupid + brainless will believe that the tax % is such low.
People in Langkawi don’t buy proton unless they are sohai
I somehow feel, even then it doesn’t make sense. For one, under this scheme, I can purchase a CKD Peugeot 208 for example (my personal favourite besides the Jazz and City as far as CKDs go below 100k), keep it for 5 years, then what? at the end of 5 years, the earning capacity is unlikely to allow the person to upgrade to a decent C segment non national car like a Golf/Focus/Jetta/Civic.
Instead, abolish all these nonsense. After all, now no more subsidies what for petrol, the billions “saved” should be used for their admin costs etc, so they don’t need tax money for our cars then….
I agree, the government now has abolished subsidies yet choose to keep all these excise duties and other nonsense just to feed their pockets.
Look at how much the Toyotas are worth. LOL!
i think the tax-free car that paul mention above still include excise tax in langkawi since all are CKDs car (excise tax waived oni car manufacturer outside bolehland)…tax free should be even more less than that..
Yes. That’s why CKD Inspira (with excise duty) is more expensive than CBU Lancer (without excise duty).
What’s mysterious is EEV status benefit. Axia which enjoys it still get taxed higher than Protons that don’t enjoy such incentive.
Even weirder, lowest spec Axia taxed higher than highest spec Axia.
And these are just figures with limited info we have, just how much more tax there actually is…
Hey Paul, can u please relook at ur tax-free prices of the cars above? How can a tax-free saga flx cost as much as a tax free VW golf mk7? The CBU car I bought from VW Malaysia gave me a breakdown of the taxes I paid…
Volkswagen under declare la. You forgot Passat cc and polo gti price went up cos of under declare?
EEV Axia have higher tax than non-EEV Iriz, what’s this? Perodua penipu scammer?
Axia E is taxed 10.86%, vs advance spec 10.22%. Govt no shame tax more on poorer people who just want basic transport? Why tax less on Advance, meant for suckers who spend nearly RM20k extra for GPS, tissue box holder, anti-snatch hook?
Give Free Education, Not Tax – Free Car.
UMNO- YOUTH leader – So Materialistic Guy!
It’s be like another PTPN loan fiasco. Use first, worry about repayment later. Or just don’t pay. Encouraging bankruptcies. Khairy should learn from our Thai counterparts.
he is grad from Oxford and London…you think he doesnt know?
more bankruptcy youngster…so they will forever working to repay their car in the life time…
we might as well offer 2 generation car loans like the housing loan..
join umno….settled
UMW conveniently added more profits after the cars are taxed.
Because they’re Godcar. Jangan persoal.
Sure one of the fellows family not earning much… Must b to benefit own ppl
The issue for reducing monthly installments for car purchases is actually two-folds that is 1) interest calculation should be reducing balance not straight-line method 2) lower taxes on cars means cheaper car prices which lowers installments. Any other suggestions is insincere.
come on. think before you speak.. he’s the minister of youth and sport. So catering to sports and also youth is his prerogative. and for tuition fees.. local public uni are partially subsidized. if not, tuition fees itself would be no less the 7k per semester. not the 2k they are paying.
For others issue, try addressing the appropriate parties involved. its like asking TM why our electric charges are expensive. how the heck should they know. go and ask TNB.
Politician cheap talk! Rakyat income burden by BN policies! . Malaysia n youth should decide what they want. Not by BN politician!!!
From promoting that youth scheme, it is 1000% better to improve our public transport. I’ve been to other country like Korea, the public transport are so effective that make me choose to walk for few minutes to get to subway or bus stop rather than riding or driving or taking a cab. Plus, Malaysian people can get healthier.
Ayo vios J 52k saja tanpa tax…..aduh…hbs seluruh hidup ku bayar tax beli vios …hutang pun tak hbs lagi….kerja gila…..
If no body buy proton pun….they still can alive all this tax can go to them…..ayo…lg byk beli vios lagi kaya gov…lagi kaya proton…betul ka?
I welcome any effort to reduce people’s expenditure.
why not crunch some numbers
How much it will contribute to traffic jam, accident rate and double parking rate?
Don’t forget household debts.
Already Msia is one of the most obese nation in south east Asia, now lessen the use to public transport and increase of bad traffic jam? Cmon, for sure % of bankruptcy amongst the youngsters are hiking up like crazy too
Malaysia minister u think Malaysia ppl got no brain. look at our neighbour country our car is the most expensive beside Singapore.
8 billion on brim but only 500mil for gov servants quaters to divide among the ministry of health, education and police…???
Had they put in more money to build quarters for gov servants who mostly has no say on where they have to serve, this can also improve the service and morale of the workforce…
For example
Lots if doctors are leaving the service for greener (Benjamins) pastures…
good for youth, but unfair for others !
All I see is the protection given to P1 and P2 is ridiculous. All in the name of national automotive industry. In a county of 30 million ppl. What a joke. And now we want to promote a scheme which essentially allow ppl who can really afford a car to own one. Great brains there….
Great article Paul ! I didn’t know cars sold in Langkawi / Labuan didn’t get excise tax. o.O I thought all cars had excise tax, and only import tax and sales tax was waived in Langkawi / Labuan. This would mean some of my older posts in 2013 were misinformed. I’d like to apologize for unknowingly propagating false information in the past.
What interests me more though in this article is how Proton and Perodua stack up with the locally assembled, foreign brands like Honda and Toyota above. It’s quite surprising that the tax on the B-segment Jazz / City is more or less double when compared to the B-segment Iriz… that’s not so bad, I thought it was much more. And the Vios is triple !? But why ? The Vios is assembled by ASSB in Malaysia, and yet it’s still a lot more expensive…. maybe the local content of the Vios is much lesser than in the City. Who knows. The fact that even Perodua and Proton are taxed clearly shows that our government can’t be bothered about the rakyat. Even the Axia bajet spec has over 10% tax… like really ? It’s supposed to be a people’s car lah, so sad…
wow P2 car enjoy the least tax among all and even less tax than P1…eventhough P2 not braindchild by local.
while P1 and P2 got better tax compared to foreign car….I think it is quite reasonable, banks do the opposite by incur less interest on foreign car than interest imposed on P1 & P2..
On the hand, …I do agree..the govt in improving public transport…but then again..we really need for efficient mode of transport…..hope govt implement BRT throughgout Malaysia..not just Klang Valley only..always Klang Valley meh !!! adoii!!!
how much money can you actually save? Don’t buy car now! STOP IT! Invest share oil company now! im sure will up soon.
its not that, maybe its something else he want to reveal
Many youths, fresh out of college, are only earning so little. On top of that they have a student loan debt. Before they can earn good money they are already carrying a heavy debt burden. Now some smart aleck want them to add a car loan.
Due to the lousy public transport system a car becomes an expensive necessary evil.
We teach our people wht we must have. .. As a material world… never mind the debt…. i grew up first 15 years… owing bank all kinds of loan … car loan credit card loan housing loan insurance payments. .give money to parents. .. at the end of it 15 years later…I only have my epf money balance. .. my pocket still empty. .. at this point I realize I should not have. .. buy a car house … have any loan at all..it had made ny life too challenging …. chasing for money everyday … We are all working for the banks in one way or the other once we think we need bank loan .. 80pc of the the money we earn goes into this… house if lucky not sold ….. then today you are OK an do well… If not most people still working for the banks… as a youth my advise is why don’t you think of yourselves as the banker .. non borrower. Average saver… invest in every possible opportunity..spent more on education… everything buy based on rewards from opportunities gained…be a responsible person… All this will never put your life in uncontrolled circumstances at the mercy of banks..my life change after 15 years when I realize I should not follow what society tells me to do… Instead dictate what I tell society to do….For me … life must hate gain. . Money.. education.. family religion. .compassion.. and watch how others appreciate what you done for them…. so please be careful all young people think rationally. .. khairy is not giving the full picture here… car is not an asset… you are the asset
By far the most valuable comment here…*Claps*
That unfortunately is not what the youth of my time wants to hear
They want the latest and greatest at the expense of debt or decreased savings for rainy days
You’d be worried at how these people are being brainwashed to be wasteful, look at the comments here about resale value as if it’s a dollar or a few cents that is insignificant to them
And you’d wonder why the 99% complains or envies the 1%
Imagine how much the rich parents can save buy buying premium cars using their children names
Brilliant idea, now the new graduates could get some commission by selling their names for temporary purchase
Could use the commission to buy a motorbike in cash
Khairy are you inline with the government strategy or you try to confuse the rakyat?
Malaysia government is looking and focussing on the public transport and try to reduce the number of passenger on road and to ease traffic congestion. This is whole reason, from beginning impose high tax to the car, high petrol price, toll rates and parking rates. Aren’t all this is to discourage the people to use private car and use public transport instead?
If this is not the case, why in the first place, imposed those tax?
So if you want us to use public transport, please provide a convenient and good public service for us.
If no,
Please reduce those I mentioned above.
i tot gov hate giving subsidies?
Better give free education than tax free cars. Benjamin Franklin said the return of investment is in education.
Our tax is used to protect Proton and not because of to offset fuel subsidy. In the pass, ppl will argue our high tax is for the G to sudsidise the fuel. C’mon la, we produce our own oil, whats there to subsidize? furthermore, now our petrol is floated. So please tax off the tax for imported cars. Its time for Proton to compete globally and if it can’t sustain. Close it like some other brand does.
We should teach our youth financial planning first. They are so spoiled with their starbucks lepakking and their branded cloth wearing.
I think this first car plan should inclusive the 4×4 variant, since the road connecting the cities in Sabah and Sarawak is no better than Papua New Guinean road condition. Malaysiam Government needs to take action to these 2 places since in term of automotive, they are suffering with poor road maintenance and high tax and shipping cost. Don’t mind Labuan since those are Free duty area, and not everyone is fond the idea to buy a car from Labuan, only to drive/ferry it away to KK, and every three month needs to drive to Labuan just to get to the Custom’s there for routinely check. Its a hustle and it’s not economical either, and I’m not talking like Penang to Seberang Prai distance here. I’m talking about hundreds kilometers here. Heck have KJ even tried to travel from Labuan to KK and back, I don’t think so.
Take home salary RM3000 (Fresh Tomato) (Live@GreaterKL /w GreaterParents)
Basic
——
– Local car 9 years @ RM 600/M = RM 2,400
– Petrol @ 1 Week RM 60 @ 1M = RM 240 = RM 2,160
– Makan @ 1 day RM 30 @ 25 Working days = RM 750
– Education Debt = RM 300
(RM 2160 – RM 750 – RM 300) = RM 1,110
Bal From Basic (RM 1,110)
—————
Weekend Jolly (Sat & Sun) Assume RM 200 x 4 = RM 800 = RM 1,110 – RM 800 = RM 310
Bal From Extra (RM 310)
—————
Good Obedient Children gv $ to mama = RM 100
Bal RM 100
—————
Cheapest Insurance Protection = RM 100
calculation not included
————————-
– Inflation
– Rise of commodities
– Sexy Girl Friend
– Dataplan subscription
that list excluding tax, car service, telephone bill, internet bill, etc etc etc
Very very shallow thinking from a minister. Make cars cheaper so that more fresh grads can buy more cars?
Instead, rebates or tax incentives should be given for higher education to make it accesible to more low income people.
That way, ppl dont hv to take up PTPTn loan and accumulate more debts.
The 2 important necessities is a house and a car. And these 2 items costs the most and would put a normal Malaysian in debt for at least half of his/her life.
A house may last more than a person’s lifetime, but a car would be difficult to do that. If someone buys a new car every 10 years, this person would be in debt for almost his/her entire life.
Ministries should go about researching on how to improve the lives of the people and how to make this country better, and then formulate policies that would do just that.
Rather than just formulate policies to make sports at all levels better, our dear Sports Minister is on a campaign trail doing events instead. Such events has been done many times over in the past and all come to a dismal end. So is this event performed to make sports better or to make a person more popular?
This Car for Youth Scheme may work if the car buyer has a guarantor that is of family and not friends, other than that I could foresee the government would come to the rescue with tax payers’ money.
If youth go to buy Vios, no more future for Malaysia because all send to grave
Take home salary RM3000 (Fresh Garlic) (Live@GreaterKL@alone)
Basic
——
– Local car 9 years @ RM 600/M = RM 2,400
– Petrol @ 1 Week RM 60 @ 1M = RM 240 = RM 2,160
– Makan @ 1 day RM 30 @ 25 Working days = RM 750
– Education Debt = RM 300
(RM 2160 – RM 750 – RM 300) = RM 1,110
Bal From Basic (RM 1,110)
—————
Good Obedient Children gv $ to mama = RM 100
Bal RM 1010
—————
Cheapest Insurance Protection = RM 100
calculation not included
————————-
– Summon
– Rise of commodities RM350
– Dataplan subscription RM 100
BAL –
if this really takes off, i bet most would go for the hondas & toyotas ^^
I would suggest not to give instant cash rebate. Instead, put in special account (EPF account 3? – at least entitled for dividen) which can only be withdraw for special purpose.
– Pay their PTPTN loan
– Down payment for house, legal fees, MOT, etc
– If they don’t have above, it can be withdrawn when they fully paid their loan.
There are many other option as well. It’s just government have to really honest that they REALLY want to help young people, not just for the sake of gaining popularity.
1. KJ was just trying to make himself look good in front of the segment that matters to his votes (i.e UMNO youth)
2. Even though there were flaws in the estimated tax-free price, it is quite evident that UMW have been raking in profits from marked up prices.
3. Most here agree that it is not a good idea. There are more pressing matters and any savings should be across the board. In my personal opinion, first time car buyers have it better than those 15-20 years ago (don’t talk pre-Proton era ok). I pity those who still cannot afford housing though, 20 years ago it was reversed. So get your priority right KJ.
Cut all these crap KJ. Tel ur master to take off the tax. Excise duty retain half la since u all wan makan suap. But import tax please cut it off. With no tax and a lower excise duty. Everyone can buy better car be it Tycoon or First timer. =)
And BN will be getting more support. Thats a win win. U do what we ask, we will support u. Dont treat us like a subject and give us what u think u want us to have. Its 21st century with rapid globalisation.
Luckily i still haven’t buy a car yet eventho already work for almost 3years.. i hope my wait isn’t wasted
Those haven’t start working, didn’t pay tax get to buy tax free car.
Those contribute tax over the years continue to pay car tax!!!!!
Genius la, love this kinda thinking
no worry guys..it won’t happen in deep… this K.J is a very clever guy, he create this just a proposed n he do know Gov. won’t approve on it.. he create this, just for he own good, so that the “Youth U****” will think that… u tengok la ketua kita do that for us n care on us young U**** so next time we gone vote for him again… that the real story behind… Everybody knew that, only the U**** guys don’t….
a question of financing.
Would the banks approve loan for those earning below RM 4000 for Honda City and Toyota Vios? Considering few banks have their own calculation before lending on these young people.
A tax free persona at 50K and Toyota 1.5 J at 52k,which graduate would forgo Toyota ,and just blindly buy proton?
Wah,if I have children just 21 and 22 years old ,just starting to work,they buy Toyota Vios and Honda Jazz for me and my wife to drive,while my proton old junks given to them to smoke,wouldn’t this idea be great,Same Lorr?
Will KJ be the law enforcer to actually see who is behind the dutyfree car?
KJ,are from Oxford or Ulu Kelang University?
So you know now which car is over priced?
yaa…i know already. The Toyota is overpriced, G, UMW and SA tipu banyak
Vios shitty is B segment, fuel guzzler tin milo underpower junk
Even handling is bad
AXIA is overpriced
what will happen if they buy the car with no tax and resell it to the open market at higher price?
This country always do things terbalik…. Public transport lousy but car tax high.
Young people can’t afford house, instead, you help them own cars!!!
young fellas, fresh grad… ride a bike or take d bus la…
It’s those with families who need cheaper & safer cars!!!!
All problems started from Proton existence, without Proton all the rakyat’s can afford cheaper cars and the Government can collects more duties/taxes from frequent changing of cars after several years on the road. Then the rakyat’s can spend their income on basic necessities and the cycle can circulates more smoothly and the Govt can collect more taxes from biznes.
Just because of Proton, all the cycles have been changed and to the worst now that the Govt is out of touch and can’t cover the wrongdoings. This resulted in various doomed measures churning out without success and bring more hardships to the rakyat’s.
There will come a day that the policies and measures collapsed and the rakyat’s will bear the brunts.
Poorly conceived idea by an Oxford graduate.
Khairy Khairy, does people in their youth has a car back in UK? No… mostly people just travel by public transport, even the car is cheap there.
Even you give them discount for car, are you next going to suggest to give them subsidy for petrol and 80% Insurance NCD? They simply can’t afford it.
What they need is a good public transport system and some good politicians and minister to bring up the standard of living, not inflation.
help them to get their first home is more like it.
Focus on your sports ministry will you? Our sports sucks. ..
Looks like I have to depend on my son to buy my first car when he graduates…. need to borrow his name to que for tax free car…
Wish KJ thinks for old poor fart like me also
I wont buy new car in Malaysia, unless you know what happens in the next general election… See u later….
U use Thai as example to tell, the plan itself doesn’t really work (or will fail). It sounds like KJ didn’t do any study before his proposal and now even paultan can think better than a politician. C’mon, kj graduate from Oxford. …
Oh wait…
I just don’t understand why can’t the government put more efforts to improve our oblivious transport system. Take Singapore or Thailand as example.. They don’t really need a car to travel to work or to school! Their public transport system can be reliable on punctuality! Unlike KTM, The Star or Monorail and also Rapid buses.. always late and have technical problem or machinery problem. Speechless…
Yea, i got this prob b4….waiting for d rapid bus..late and traffic jam, lagi worst! The lrt everytime has a technical prob…like rainy days during morning..imagine so crowed in d lrt and hav to wait how many rounds of lrt to hop in… Ini Malaysia boleh…apa pun ada, apa mana pun boleh… [Sigh]
Change this government 1st and then we’ll see cheaper cars They lied to us before the election, so who needs them(Liars)
Is he trying to be a bigger clown!…stop all this excessive tax on import cars!! just open the market teach this pampered fools to be competent and competitive in the open market! enough spoon feeding! unless waiting for it to become worst stage then MAS! that’s if it isn’t already… or continue to be the nations jester and wait for next GE14..BOZO!!!
I think it should be fine as long they tighten minimum individual requirements. This can be a big deal for people around age 25-35yo whose never owned a car.. And for the monthly income I think they should set a minimum Monthly income to prevent individual fail to do monthly repayment.. If you notice to the lowest monthly installment is around rm400 or lower then I think the minimum monthly income is around RM1100 . This may of course costly but this lead individuals to be more pro active and mostly in certain area or major city individual may find it’s hard to earn higher income opportunities due to transport matters which many high earnings potentially located far and individuals had to just stick around that was caused from public transportation issues.. It’s the matter if the government is to invest in it, Malaysia Boleh ma.. Mustahil tak ada yang tahu@pintar..
Ps : I faced the same issue’s too so I know what Im talking,,
THing is simple.
As long as CKD in Malaysia.
It’s consider national produce car.
Should enjoy tax free. Only charge GST/Sales tax.
So, it can create local supply chain, more entrepreneurs, more job opportunities instead of using all malaysian tax payers’ money to cover Potong losing money business.
See Potong, even well said 100% Malaysia.
but the price is damn high!.
Conclusion, change the Government!
We never know Change is good or bad, but no change sure mati cepat
Agree
Everywhere also tax, price should be dropping, if not, how the youth gen could afford? Lrt always crowded, wometimes the lrt would hav technical problems. Why not u get ur ownself a car? But the problem now is d price of a car is too expensive… a lot of youths can’t afford it.
wao, i just realized the proton and perodua, our nation car selling for 62k standard lol……
Hey,before I start my speech,can I ask why you guys always blame Proton and then when Khairi do this plan,you guy say that the Government is forcing you guys to buy Proton.First,you guys say Proton is using Rakyat money.Please,hear this.First,why you guys always say that Proton is using Government a.k.a Rakyat money?Actually,all the car and Rnd project is 100% paid with Proton money.But if you want to know,the foreign car manufacturers use the Government money.Why?Because got many VIP (Very Stupid Person) from the Government support Honda,Toyota,Mercedes and e.t.c.They know if they support Proton,maybe will not `laris‘ because of you guys didn’t support Malaysian products.That’s the truth.Second,you guys always say that Goverment forcing you guys to buy Proton and Perodua.Actually,no!Let’s say you want to buy Honda car.And you must to pay tax.Why?Because it’s imported!This is normal.Proton in other country also like that like UK.People at there also buy Proton car with tax.Please guys,I say this not because I want to defend Government,but that’s the fact.I am not BN macai.I vote PKR.Please ah Proton Haters,if you want to critics Proton,find a truth mistake.Don’t invent a mistake just because you want to Protect foreign car manufacturers and critics Proton.Another one,please Mr.Jxn,don’t spoil other people brain just to critics Proton.Think first before you say.GoGoProton!!
P.s.-People in UK,Australia like to buy Proton daripada other car manufacturers.But here,Proton Haters Fuck like hell,
I hope this scheme is implemented soon! Definitely going to get the Iriz if I’m posted to a place with less public transport. =)
Nice choice!I must to say if you buy Jazz or Vios,if got one of the parts broken or damage,you will get in trouble.My father friends,own a Jazz.Until now,he is waiting for new suspension spare part from Honda.Already four months.Because they say don’t have spare parts and must to wait it ship.Anyway,hope you achieve your goal to buy Iriz.Go go Proton!!
until today there is no Proton Iriz around KK city, I’ve seen only 2 Suprima and so many Axia ….so what the Proton Dealer will do?
Great comparison with the Thailand case study. I suppose if the government could include ways to avoid what happened with Thailand’s car scheme, it would be viable. However they are working against the consumerist nature of the people, and that is a tough job.
I’m very doubt on the % of tax imposed on each of the car listed especially the imported model.
even students graduate from a good university can be ignorant. I mean come on, study loan, bills and others needs have left them to be stress how they are going to manage to pay all those. A car is a good to keep around for emergency. Cut off the bullshit AP tax and help every Malaysians for a car price that is affordable.
May i know how much is actual for the first car buyer for toyota vios 1.5 trd sportivo at?