MICCI wants gov’t to reduce tax on hybrid/electric cars

Tesla Model S 85 drive-4

The Malaysian International Chamber of Commerce & Industry (MICCI) wants the government to reduce the import duties by 5 to 10%, as well as relevant taxes to encourage the usage of hybrid/electric cars in the country, according to a report by Bernama.

Datuk Wira Jalillah Baba, president of MICCI, said a study by the Energy, Green Technology and Water Ministry revealed that transportation was a major contributor to the country’s pollution at 70%. “We want to encourage wider usage of electric cars on the road, but what’s stopping the consumers is the higher import duty, excise duty and approved permit (AP),” she told Bernama.

As a comparison, she said the Tesla electric car sells for around US$70,000 (RM289,551) in the United States, but in Malaysia, it carries a price tag of RM500,000. It is reported that Tesla cars are subjected to an import duty rate of 30%, plus an excise fee of 65%, while the Goods and Services Tax is 6%.

Therefore, Datuk Wira hopes the government will consider cutting import duties and other relevant taxes in the upcoming Budget 2017. “If we can reduce carbon emissions contributed by transportation, why not? By doing this, the government could (also) attain its commitment to the United Nations of reducing carbon emissions by 40%,” she explained.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • pinkcherry on Sep 21, 2016 at 12:19 pm

    Cheaper autonomous-driven Tesla..

    Like or Dislike: Thumb up 5 Thumb down 0
    • Mana boleh, Gov wants money only. Who care about air pollution.

      Like or Dislike: Thumb up 15 Thumb down 3
      • George Abdul on Sep 21, 2016 at 4:39 pm

        Govt just care for the extra $$$, Rakyat health and living cost/expenses yet their just ignored and keep on increasing price !!!

        Like or Dislike: Thumb up 9 Thumb down 0
    • Madani on Sep 21, 2016 at 4:53 pm

      Hybrid/electric cars come under the purview of NAP 2030.

      Like or Dislike: Thumb up 0 Thumb down 0
  • paparadzi (Member) on Sep 21, 2016 at 12:22 pm

    They need to look at the road tax for hybrid cars as well. My fuel savings (and therefore carbon emission) on the 2.5 liter Camry Hybrid is taken up by the extra cost of the road tax.

    Like or Dislike: Thumb up 12 Thumb down 4
    • Free road tax for hybrid cars – Camry Hybrid, BMW i8, S400, 330e, X5 plugin, XC90 T8…

      Like or Dislike: Thumb up 14 Thumb down 3
  • Sammy Loo on Sep 21, 2016 at 12:31 pm

    Tax free EV and Hybrids should be expand to CBU cars as well like once we have it few years back.

    If government wants to promote green environment, it should not be limited to only CKD cars. Green environment is benefit for everyone.

    Like or Dislike: Thumb up 23 Thumb down 3
    • Ahmad on Sep 21, 2016 at 3:08 pm

      Too bad our gomen care more about the $$$, not the rakyat’s health and the rakyat’s burden

      Like or Dislike: Thumb up 22 Thumb down 2
      • Gov already give CKD EEV/hybrid incentive, so why still no price drop? Look like the dealer care more about customer $$$

        Like or Dislike: Thumb up 8 Thumb down 0
    • Its polluting when u need to hire a ship to bring the CBU car in, so this negates the eco-friendliness of the car itself.

      Like or Dislike: Thumb up 4 Thumb down 4
      • waters on Sep 22, 2016 at 11:19 am

        Good argument!

        Ocean going ships are extremely polluting. Should research this a bit more.

        Like or Dislike: Thumb up 0 Thumb down 0
    • 1Pekema on Sep 21, 2016 at 4:50 pm

      Sale of hybrid/electric cars should only be entitled to Recond car dealers. This is also to ease usage of AP…

      Like or Dislike: Thumb up 0 Thumb down 0
  • 5~10% is small dedak. If EV car makers CKD here and apply for EEV, the savings is much much more. But then how much the makers want to “makan” that saving is another story

    Like or Dislike: Thumb up 12 Thumb down 0
  • offisial wan on Sep 21, 2016 at 12:55 pm

    Yeaaaa, come guys let’s bagi syok kat rakyat. No need to take action la. We can continue this topic after 3 years & repeat this formula for the next 50.

    Like or Dislike: Thumb up 23 Thumb down 0
  • Fatimah on Sep 21, 2016 at 1:01 pm

    All thanks to that Proton creator who started all these mess. BN has my vote if all car prices reduced further by 20-30%

    Like or Dislike: Thumb up 7 Thumb down 8
  • C. P. MOHAN on Sep 21, 2016 at 1:01 pm

    How can especially if got interest in Petronas and Palm Oil industry, they call it “Conflict of Interest”.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Rather than import, why not the local carmakers manufacture electric and hybrid vehicles.

    Like or Dislike: Thumb up 3 Thumb down 1
    • Ahmad on Sep 21, 2016 at 3:46 pm

      Cannot, cause we are far far away from that level. We can’t even get our power windows right.

      Like or Dislike: Thumb up 6 Thumb down 1
      • BMW and Mercedes already manufacturer PHEV (Half Electric and Half Petrol). Japanase manufacturer also already manufacture hybrid car.

        Like or Dislike: Thumb up 0 Thumb down 1
        • Anyway, hope to see Malaysian electric vehicles in the near future.

          Like or Dislike: Thumb up 1 Thumb down 1
        • Ya but no price reduction even got incentive. Wonder why.

          Like or Dislike: Thumb up 1 Thumb down 0
          • Rajib on Sep 23, 2016 at 12:21 pm

            Manufacturer see this as excuse to rake more profit, as there is no method to protect user if this happen.
            In the end, if not gomen, carmaker (Honda, toyota, audi, merc, bmw, etc) will get us.

            Like or Dislike: Thumb up 0 Thumb down 0
  • Silthice on Sep 21, 2016 at 1:13 pm

    Re-enhance the EEV status by including the emission standard. Less emission means less tax as well. Should be enforced by 2018. In ASEAN meeting highlight about vehicle safety, fuel consumption and emission. Make a standard for ASEAN countries like EURO does and make the car company to obey minimum standard, either car cannot be sell in ASEAN or will be penalized. The car companies have been taking advantage in ASEAN markets due to no common interest and standard rule.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Boboy on Sep 21, 2016 at 1:51 pm

    Gov got no money. By raising taxes, they can get more money from the buyer/citizen

    Like or Dislike: Thumb up 3 Thumb down 3
  • Middle Age Driver (Member) on Sep 21, 2016 at 1:52 pm

    This clearly shows the govt is not concern of the environment and more interested in protecting revenue from oil usage when hybrid and fully electric cars are more environmental friendly.

    Like or Dislike: Thumb up 6 Thumb down 0
  • Just remove taxes for electric cars like before. Unfortunately, government is so poor now that they wouldnt care about issues like pollution. on Sep 21, 2016 at 2:26 pm

    Neutral

    Like or Dislike: Thumb up 4 Thumb down 0
  • After less tax then what? Extra profit margin while all the taxless RM soglap by the distributor without any price reduction to customer? Why not you check all the ckd eev/hybrid if the manufacturer reduce price or not while got the incentive from gov.

    Like or Dislike: Thumb up 6 Thumb down 0
  • So smart la this fler. The Tesla’s price range even if it was one-to-one with the US puts it out of reach of the majority. What you need is a policy to encourage carmakers to launch electric or hybrids for the masses. THAT will impact the pollution generated by fossil fuel vehicles. If you register 500,000 vehicles annually, but only 500 are non-fossil fuel, you think you’d breathe cleaner air?

    Like or Dislike: Thumb up 5 Thumb down 0
  • Ahmad on Sep 21, 2016 at 2:58 pm

    How I wish our gomen will listen to MICCI.

    However quite impossible, our P1 sales is bad enough, if gomen reduce tax for Hybrid and Electric cars, P1 sales will fall deep down into the earth’s crust. Gomen confirm won’t be able to get back its RM1.5billion, adding on maybe need to give P1 more loan in the future.
    Like this lose lose situation for the gomen, our gomen confirm will care more about their money over the rakyat’s environment.

    Looking at P1’s development, obviously they are no where near producing hydrid or even electric. I mean come on, they don’t even have money to design a car on their own.

    Hence, rakyat have to continue to bear the high cost of vehicles thanks to our underperforming national car. And also inhaling dirty air.

    Like or Dislike: Thumb up 6 Thumb down 1
    • If u want cleaner air, stop breathing and use upcoming MRT

      Like or Dislike: Thumb up 3 Thumb down 4
      • Ahmad on Sep 21, 2016 at 4:56 pm

        Indeed I’m using Lrt for now. Thanks for the advice.
        Too poor to own a car. Have no time for all these excise duty and import tax bullshit. All this money will eventually be transferred to P1 anyways if they are not improving any further.

        Like or Dislike: Thumb up 4 Thumb down 0
        • Gud for u! And thats exactly what Najib wants more pipu to do, use public transport. Unlike a certain old man.

          Like or Dislike: Thumb up 3 Thumb down 1
  • Tz1234 on Sep 21, 2016 at 3:41 pm

    Pls ban all outdated diesel especially on those trucks and buses that produced thick black smoke first. Then only talk about cleaner emission on road car.
    Not just selfishly want cheaper ev sportier by lowering tax.

    Like or Dislike: Thumb up 8 Thumb down 0
    • Yokohama24 on Sep 21, 2016 at 4:57 pm

      Freaking Metrobus!!!! Ban them all !!!!!

      Like or Dislike: Thumb up 4 Thumb down 0
    • Henry on Sep 22, 2016 at 7:31 am

      I see them so often. One of those freaking old junk diesels will negate a hundred Hybrids/EVs.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Stupid people comment and stupid people reply.
    Duty and Tax for Electric Car (Tesla) shoud be Import Duty 30%, Excise Duty 10 and Gst 10.

    Like or Dislike: Thumb up 1 Thumb down 3
  • Say no to corruption on Sep 21, 2016 at 4:22 pm

    The govn doesn’t care about issues like pollution lah. They’re only interested in $$$
    This govn has got all their priorities wrong in the first place. That is why despite our oil riches, we are lagging behind countries with no natural resources.

    Our automotive sector has been totally screwed up by the BN govn since Mahathir’s era. Two generations of Malaysians have had to suffer paying ridiculous car taxes, only for the govn to squander all the tax revenues.

    Like or Dislike: Thumb up 0 Thumb down 0
  • passion on Sep 21, 2016 at 4:55 pm

    NATO – no action talk only.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Mikey on Sep 21, 2016 at 5:18 pm

    Yes, the gov should reduce tax on hybrid but I betcha if the gov reduce tax on Hybrid cars, they will have to increase other taxes bcos the gov coffers are empty. This is a chicken & egg dilemma.

    Like or Dislike: Thumb up 0 Thumb down 0
    • Rajib on Sep 23, 2016 at 12:23 pm

      Do you even know how much tax you paid for your car? Bear n mind, its NON-Value-Added, meaning you pay that much and you get nothing in return.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Ckleon on Sep 22, 2016 at 12:06 pm

    How does EV is more green in Malaysia? lower emission? think about the power generator in Malaysia (majority are diesel powered), the production of the battery (by Lynas??)

    Like or Dislike: Thumb up 2 Thumb down 0
  • Rajib on Sep 23, 2016 at 12:18 pm

    1) NAP 2014 breeds non-hybrid cars. Honda Malaysia no longer make Jazz Hybrid (even with strong and very promising sale in 2013). CRX price increase like Najib’s admin national debt.
    2) Our CO2 commitment to US is only dedak. It is NOT crude emission, but Emission intensity per GDP. Meaning, as long as GDP increases more than co2 emitted, malaysia fulfill its commitment. This creative solution can only come from someone used to swindle people.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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