The government has yet to reach an agreement with regards to the restructuring of excise duties, but car prices will not increase drastically, as much as 15-25% as reported, according to finance minister Lim Guan Eng.
UPDATE: The story and headline has been amended following clarification from Lim Guan Eng’s office.
Lim said that changes, if any, will be gradual “Should there be any changes, it must be made gradually and not abruptly. We are holding discussions regarding the matter to ensure transparency (in terms of reporting) so that we can continue to meet our obligations to the World Trade Organisation (WTO),” he was quoted as saying in a Bernama report.
Speaking to to reporters after the launching the Budget 2020: Government Guarantee Schemes for SMEs by Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) event in KL today, he urged the public to wait for an official announcement from the government instead of taking market speculation as the final say.
According to the Excise (Determination of Value of Locally Manufactured Goods for the Purpose of Levying Excise Duty) Regulations 2019 – prepared by the MoF and gazetted on December 31, 2019 – CKD locally-assembled vehicles could attract more excise duty because of the methodology of how the open market value (OMV) of a vehicle is calculated.
The OMV is the final market value of a CKD vehicle ex-factory, before the government imposes excise duties on it. An assortment of components determine the OMV, and these include the cost of the CKD pack, cost of manufacturing and components as well as assembly and administration charges.
The gazette adds new components into the OMV calculation. Under the new regulations, the computed value to determine duties will now take into account not just the profit and general expenses incurred or accounted in the manufacture of a vehicle (ex-factory), but also of its sale.
According to a source familiar with the matter, the “and sale” clause also now applies to areas such as engineering, development work, art work, design work, plan and sketch, royalty payments and license fees (patent, trademark, copyright), raising OMV and applicable excise duty.
The gazette isn’t explicit though, and it depends on interpretation. As this is a developing story, we’ll attempt to get feedback from the Malaysian Automotive Association (MAA), the umbrella body representing car companies. Earlier today, Perodua president and CEO Datuk Zainal Abidin Ahmad said that this new ruling comes as a surprise to Malaysia’s auto market leader.
“We have very frequent engagements with the government, particularly on items in relation to the development of the local automotive industry. But specifically for excise duties, no, we were not consulted. That’s why we are in discussions with some of the members of MAA to try to evaluate what is the impact of this,” he said.
Looking to sell your car? Sell it with Carro.
Open market value (OMV) of Honda Accord and Proton Persona is same , RM40k.
Won’t be same. Honda Accord increase while Proton not increase
Yeah Foreign cars not same while national cars will be same
This what happens when GLC based CKD car companies in Malaysia cheat and under declare invoices the past 30 yrs.
Salah siapa? Salah pemalas kat GLC yang menipu LHDN selama 30 tahun dengan under declare tax
You mean proton?
unlikely, because abang2 are, according to you, too stupid to cook the books. Only educated ahpeks2 know how to cook books, and we all know how they rebelled when GST’s tranparent system made them unable to cheat.
heck, they even try to cheat their god during burial time…
Dont care tipu but we have lower car prices. Now? Everything Price Hike. PH go to hell!
Proton should not be classified as a National Car because they are now a full China company. Milik China.
China controls Proton completely, so I don’t know why Proton is given National car privileges and status.
I also don’t know why Perodua continue to get national car privileges, status, incentives and tax deductions when they are just a car rebadger for 25 years. MACC should look into their status as national car maker as they clearly don’t make their own cars since day 1. Enough with the intrusion into other people’s privacy, go do your job and quickly pull back Perodua status as a national car maker.
Perodua – other than engine, all done by Malaysian, price difference between labuan and other states is below 5%. Im saying all products.
Proton – other than logo, all done by China, price difference between labuan and other states is more than 30%. I’m saying the X70.
That’s why Proton national car privilege should be pull back.
Legit?
You are so far way off the mark Dave.
Perodua- everything except the reskinning job is by Daihatsu & Toyota. You see Aruz and it looks near exact to Toyota Rush. Axia also is from Toyota Ayga. Their cheapest and most expensive range and everything in between are rebadges from Daihatsu a& Toyota.
While Proton- all products except X70 are truly national cars. Even with X70, they did a lot of reengineering to convert into legit RHD, so they had done a lot of work for it to deserve national car status.
Legit yes?
Kencing kuat…
BN dan PH sama2.
Give it 60years. PH must proved it better,
Given PH 20 months and their corruption level is already worse than BN of 60 years. Give PH 60 years and we probably got sold to some other country and recolonised again while they enjoy their taxpayer robbed wealth in US, UK, Aus, Canada.
Yeah PH has already proven better bro.
Better at corruption.
Better at race-baiting.
Better at killing the economy.
Better at destroying the country.
Better at fooling the rakyat.
Better at robbing the rakyat.
Better at making excuses.
Better at non-fulfillment.
Better at lying.
Better at trolling the rakyat.
Better at BN being kicked out sooner.
oh yeah, but better than buying Birkins bro….lol
What is wrong with buying Birkins anyway? I bought a couple for my wife so what?
same abang abang running the Government bro. Only Cabinet has changed. All those Sec Gen, Pengarahs etc all remain the same. Lazy to the core and want everything easy and free.
Dulu dedak sekarang pun dedak bro
Bukan salah mereka tapi semua salah kepala. Siapa kepala? Kepala nobita ni lah!
i see the the need to cantas some local perasan bagus ahpeks so that they sedar diri sikit.
60 years of corruption has made our car prices the highest in the world.
Why our cars naik harga? The answer is very clear. All our car companies are Government owned. Except for Tan Chong and a few others, all are Government owned.
For 40 years, Government squeeze us maximum kaw kaw to feed their GLC staff
Honda – DRB
Toyota – UMW
Proton – DRB
Perodua – UMW
BMW – Sime Darby
Hyundai – Sime Darby
Ford – Sime Darby
60 years of corruption has kept car prices lower
https://paultan.org/2020/01/17/new-malaysia-excise-duty-regulations-introduced-for-2020-could-see-ckd-car-prices-rise-by-up-to-15/
Time to vote BN back again. Real sick of PH now.
Now here is an interesting conundrum. So many comments are slamming LGE and saying “you think we’re stupid ah?”. Here’s the interesting part.
Well he is the minister because he got elected, and as for the 2nd part well… you peeps did vote for him & his gahmen which got him elected, no?
Of course CKD car prices will rise. Who does LGE think he is fooling…?!!
Erm…. their still remainder diehard PH supporters? Because obviously the rakyat no longer trust PH anymore, looking at their rejection from both sides of the South China Sea.
Government needs the money to feed the 1.6 million overbloated staff in Putrajaya. In actual fact, we only need 300,000 Government servants. But because of minum teh 8X sehari attitude, productivity is low so we need more manpower to serve the system
One good example is Proton. Proton has 12,000 workers but produce 60,000 cars per annum
Mitsubishi in Thailand has only 6000 workers but produce 350,000 cars per annum
This is 10X productivity because of hard work and less goyang kaki
Majority of the “bloated” civil service is in the police, or teachers in schools or doctors and nurses in hospitals. Is 300k is enough when people dont have enough policemen doctors and teachers.? Talk is easy.
we have 500k civil servants says ceupacs.
https://www.nst.com.my/news/2017/02/212733/malaysia-has-500000-civil-servants-not-16-million-says-cuepacs
and mitsu in thai only assemble cars from components supplied by local vendors and japan. they assemblers, not manufacturers.
liars like you need to sent to the morgue ASAP.
Malaysia 1.6mil civil servants, no raging bushfires.
Aussie 250k civil servants, out of control raging bushfires. 1 bil animals died.
Kepala jubo overbloated.. balik tmpt asal la jibauk..
It was gazetted and yet he is denying it? Wow he seriously thinks we are all fools.
Even though discussion of resolving car prices, still will increase gradually since excise duty regulations was approved end of last year because of OMV
LGE pui
Boiling katak gradually, isn’t?
Very good. Pls keep your words.. We’re already paying a lot to own a car.
Berani dia deny sebelum jadi. Pls learn from your RM1.50 petrol drama.
This is fake news spread by Cybertrooper John and his BN friends
Fake news. LGE has confirmed that if PH were to fulfilled all their GE14 promises, the country would truly be bankrupt. This tells us, they had in fact made those promises and there are Youtube videos to prove it, not just written words but from their own mouths.
“Gratually” also mean price will go up eventually right..
Exactly! Politician with his twisted tongue. Who he think hes trying to fool?
Not just politicians but their cybertroopers as well. You can ady see one here trying to deflect blame from his incompetent minister.
Satu lagi Manifesto PH…..Getting rakyat screwed today, and eventually more screwing in the future.
For those who is cost conscious, I would advice you to stop buying P1 and other makes….and buy Merc instead becoz it is cheaper to maintain, ya?
betul. PH dan BN sama. Dua dua ada majority yang pemalas dan suka bantuan kerajaan dan suka kelentong.
Beza besar.
BN tak kata janji2 manis tapi tetap melaksanakan bagi faedah rakyat.
PH pulak banyak janji2 manis tapi satu janji pun yelek.
Lagi baik BN naik balik laaa.
Betul. Dua dua ada majority politikus yg korup. BN punya member2 korup sekarang dah pegi PH. Tiba masa utk bagi BN naik semula.
“Should there be any changes, it must be made gradually and not abruptly. What actually he is thinking of when he utter those words???are we the rakyat really dumb and cant digest his words above?@or he is the dumbest person who cant really understand before saying something???correct me if im wrong..the word gradually for sure referring to incresing of the price..isnt???changes can be refer to something that will not remain the same….overall=price increase..
Good game.
I hear this:
X70 has pushed HR-V naik Harga RM10k.
next? delayed Civic pricing approval?
now, all price naik harga to protect China Man Company.
Good one. All actions are to protek Proton and make China richer. China already rich but now, we make them richer
This new PH Gomen is totally w/o integrity.. Before GE.. “We will make the life’s of Rakyat less burden” but after moving into Putrajaya different story.. Toll not abolish extent another 20yrs.. Now semua harga
naik.. barang makan naik, minyak (petrol) naik, harga kereta naik.. Fcuk probably the only thing didn’t naik is minimum pay.. Totally hopeless PH Gomen (likely 1 term if this goes on)
Govt has yet to reach agreement regard the restructuring???? because everyone caught in surprise in the auto industry went to him to discuss/opposing… -_-” affecting car salesman rice bow now. CKD now later June another wave which will affecting CBU & recond car. wtf govt doing now? they want to discourage foreign car maker to invest in thailand or indonesia instead??? highly suspect all this is about protecting the 3rd national car which going to kill the p1, p2 and other non-3rd national car!!!!
true brader, Tun & PH r on track in their back stage a long time ago B4 PRU, rakyat is just their pawn to gain power … now rakyat only knew they were being con
No wonder foreign companies reluctant to invest heavy in Malaysia auto industry, Malaysia’s simply too unpredictable
My vote will be for opposition on next general election if the car price increase.
Gv us cheaper toll price but take bc the $ from car price… think malaysian are stupid…
“I deny car price increase by 15-25% as of tomorrow.but will increase gradually within this year.but again i deny increase.but will increase gradually up to 15-25%”.and we voted for him.yeay us!
How gradual is gradual? 1% per 10 years? Or 1% per week?
Bodoh sungguh nobita nih
Go up means go up. what difference does it make abruptly or gradually? You think people buy car everyday izit? Please grow a brain la Minister.
Kerajaan sepenggal.
The same thing you say about SST and GST.
You claim prices will come down but in fact it went up doubled…
After that you claim prices will go up gradually but it didn’t again…
After that you claim our GDP is good but it’s going down…
Everything you say seems to be the opposite…
Why should we trust you this round?
Still making noise on car price increase? Hello, even a rich Malaysian can buy the infamous yacht named Equanimity. Apalah sangat minimal price increase due to the new tax structure done to cover up previous years by years Naza’s duty escapism practice.
Naza is atok crony remember
I wish we are at that level where everyone could buy an Equanimity then we won’t have to complain about car prices and traffic jams, we will only complain about boat jams. If PH can do that we will have 1 less to complaint about. Can PH pls do that?
Shhhh … Naza kroni kita, jangan di persoalkan. Kroni kabel tebal woi. Syukur Msia Aman.
Nothing else to talk about?
Pls participate intelligently or you’ll just sound like a fool.
Zaman BN harga kereta mula turun sikit2. Zaman PH harga kereta mula naik sikit2. Nak jaga kereta nasional ketiga atok94..
PH and BN tak sama. PH ada banyak pakar2 formula dari BN.
Con-lan-firm price increase.
Syukur Msia Aman.
macam toll juga…gradual…
OIC…..gradually 15-25% then ah? TQ TQ TQ TQ
STFU!! Think we are stupid?
True story is because protect National cars, these two then non national car owner have to feed them.
There’s no 1way ticket. what goes up, will fall down. Keep pushing the price up hoping the sales continue to grow is a dreamer. if the govt is not focusing on FDI and jobs growth then, don’t expect the citizens to afford high prices on all consumables or cars. The property market is a great example. The perk of it is achieved and its free falling, none of the govt perks can conceal the fact. Rental properties have weaken greatly as well. So our govt must be anticipating cars market will be up and away huh… Time will tell…GL