Import duties for cars from Japan and Australia will be gradually reduced to zero by 2016, Minister of International Trade and Industry Datuk Seri Mustapa Mohamed has said, according to various reports. The issue of excise duties, which forms a significantly larger percentage sum in the scheme of things, is reportedly under consideration, even though it was stated last year that there were no plans to reduce the excise duties on cars.
According to Bernama, import duties for cars from Japan and Australia currently stand at 15% and 13.6% respectively (supposedly, the gradual reduction will be in made in a five percent drop annually, in the case of duties for Japanese imports, so by 2016 this will be down to zero).
Another source reports that this reworking of the import duties covers vehicles of up to 2.5 litres engine capacity, and that currently, vehicles from Japan with an engine capacity of 2.5 to 3.0 litres are already fully exempt from import duties. The move is said to cover around 21,000 CBU units from Japan annually.
Meanwhile, Mustapa said new car prices have started dropping by RM2,200 to RM17,000 since last year, depending on models. Further price cuts would be possible with the liberalisation of the automotive industry through the implementation of Free Trade Agreements (FTA), he added.
The minister told a media conference in Putrajaya yesterday that Malaysia is currently talking to the European Union, Turkey and Bangladesh about signing FTAs, and that the government has been working with car companies to voluntarily reduce prices.
He added that any liberalisation should be gradual to allow the industry to adapt and to ensure its 300,000-or-so employees are not adversely affected. “Plus, the second hand and resale market alone employs about 100,000 people and the revenue from car taxes has helped to subsidise the cost of fuel and other amenities,” Mustapa was quoted as saying.
In related news, Proton has issued an official response to the MITI announcement, and here are excerpts from that statement:
“Proton Holdings Berhad welcomes the announcement made today by Datuk Seri Mustapa Mohamed, Minister of International Trade and Industry pertaining to the Government’s views and intention to gradually have new policies for the automotive industry in formulating ways to reduce the prices of cars in Malaysia.
As this involves the entire ecosystem of the industry, Proton will further study all aspects relating thereto and the possible impact it has on not only the company but the entire local automotive industry, to ascertain its next course of action, future plans and directions for not only the company, but also the entire ecosystem of the industry vis a vis our domestic and international markets.
Any decision on this will be made after due discussions and consideration with all our stakeholders, which include our vendors, suppliers, dealers, pre-owned vehicle operators and of course, the consumers who have all along been supportive of Proton cars.
Nevertheless, just like all the other automotive industry players, any policy shifts towards market liberalisation has already been anticipated by Proton, and the company is optimistic that it can compete in a fully liberalised market with affordable and good quality cars for our customers.”
Response to MITI’s announcement from other industry stakeholders such as MAA and Pekema here.
Looking to sell your car? Sell it with Carro.
“Any decision on this will be made after due discussions and consideration with all our stakeholders, which include our vendors, suppliers, dealers, pre-owned vehicle operators and of course, the consumers who have all along been supportive of Proton cars.”
How are they going to discuss with the “consumers”?
This is how Jaguh Kampung No.2 “discuss” with consumers and the outcome: –
1) Local consumers – Poor Kampung folk life is cheap but Jaguh Kampung No. 2 car is expensive!
2) Export Australian market – Mat Salleh life expensive but Jaguh Kampung No. 2 car is dirt cheap and load with good specs together with 6 airbag and 5 star ANCAP rating!
Hidden due to lowcomment rating. Click here to see.
MITI NATO NAPping.
That sums everything up. Oh wait, your username should be added to the list above.
hi dude, welcome to Malaysia, and congrats for 1st day walking out from jungle
This will only benefit few car buyer that could afford imported car, we need the exemption of excise tax, not import duties!! And, after election, will Be-End proceed as what they promised? I dun think so.
can extend maaa.
some few people ask for extension can extend til 2000020000022200000. when close to that date can extend again.
they will abolish the tax. next next next year. they’ve been saying that for the last 50 years.
you don’t like can go venezuela.
engine capacity of 2.5 to 3.0 litres are already fully exempt from import duties…
and smaller capacity cars will most probably be fully ckd soon, so what’s the point ?
The point is…. GE
The traditional role of NAP are protect Jaguh Kampung No. 2 (i.e. read cronies) and AP Kings.
Now they extend this “hak istimewa” to the rich! Let the poor people buy expensive car, but their life is cheap!
hmm, no import duties, great.
But the one that actually kills us the excise duties…
and….any car produced in Australia? i can only remember HOLDEN (Chevrolet).
Import duty or excise duty? Dont play the game and reduce car price now and fast!!!! before election.
Why Australia ?? what care are we bringing from there ? or is it for the benifit of proton – exporting cars to Australia ?>????
clearly u don’t understand FTA. it will be 0% import tax for both ways, from Aus to My or from My to Aus. so yes it will benefit Proton in a way. if you can afford to pay roadtax of 4litre car, then u can now import it from australia.
Back in October 2012, Datuk Seri Mustapa himself said the Governement will not review the import duty. Now here is the ‘U-Turn’. *ROFL* A direct response to what was published inside the other factions’s manifesto?
Anyway, good news for those looking to buy Japanese/Australian imports within the next 3 years, with the biggest winner’s possibly those who could wait out til’ 2016.
you still believe that?
i can’t remember from how long they’ve been saying they’ll reduce and eventually abolish the high car prices.
they say next year, then next 5 year, then next next year. afta here, afta there, extend here, extend there and yet still after dunno how many years still the prices is sky high.
the tuns and tan (sri)s won’t even touch the cheap, everyday car that most people are forced to live with. they value their life. so they drive porsche and bentleys.
they average joe must live with 1 star BLM and 3 star myvi and even 0 star ex5 and kriss so they themselves can live with rolls royce and bmws.
yeah you say i’m a lazy bum and must work extra hard to afford the 5 star cars. compared to me who’s actually working my a$$ off, who’s the lazy bum compared to those AP kings who got AP for free and sell them off for RM20k a piece?
AP are now sold for RM2k. i have RM2k, can i walk to a MITI office and buy an AP for RM2k? i wanna import a used porsche cayenne for ~12k pound from the UK and use it to drive my family for balik kampung.
can i?
Dei don tell grandmother story la, so much time to sweet things up why wait until now only do.
cukai import baru 15% and 13.6%. tapi cukai eksais bermula setinggi 85% bagi kereta bersaiz bawah 1,800 cc dan mencecah 115% bagi kereta bersaiz atas 3,000 cc dikenakan ke atas setiap kereta tanpa mengira asal pengeluaran.
cukai import baru 15% and 13.6% tapi cukai eksais bermula 85% bagi kereta bawah 1,800 cc dan mencecah 115% bagi kereta atas 3,000 cc dan dikenakan ke atas setiap kereta tanpa mengira asal pengeluaran. Pakatan rakyat mahu menurunkan cukai eksais ini dalam tempoh lima tahun secara berperingkat dengan kadar penurunan 20% setiap tahun.
So kita semua tau macam mana undi ia?
Since 1985, nobody cares for us (sorry, I am excluded, I don’t need their care in terms of buying luxury cars).
We need PPublic RRelationship.
This is bullshit, this import duty thing has minimal impact to most car buyers let alone takes 3 years to implement, a car CKD in malaysia enjoys this as well, e.g. Mazda pre and post CKD model thats the price difference.
WE NEED TO EDUCATE AND LET ALL MALAYSIANS KNOW WHAT IS THE ADDITIONAL HIDDEN COST ON THE PRICE OF CAR THEY ARE PAYING
The current Approved Permits (AP) issued to UMNO cronies is also a major cost as are the excise duties at between 75%-105% of the cost if the vehicle and the 10% sales tax.
A high end BMW 5 Series sells in Europe for RM190,000 before tax
A less well specified BMW 5 Series sells in KL for RM 598,800.
The Calculation:
Brand new BMW 5 Series in EU before tax:
= RM190,000
+ Shipping: RM3000
+ Insurance during shipping: RM1000
Customs Value: (RM190,000+RM3000+RM1000)
= RM194,000
+ Import Duty RM194,000 x 30% = RM58,200
+ Excise Duty RM194,000 x105% = RM203,700
+ Sales Tax @10% x (RM194,000+RM58,200+RM203,700 = RM455,900)
= RM45,590
Total RM501,490
AP Costs (given to cronies for free) and added to the end consumer as an additional cost
= RM97,310
BMW sold in Malaysia for a Grand Total RM598,800
16% of the cost of a new car goes to the AP holder.
To the current ruling Malaysian government.
Q1) Can you please be more transparent and show us in detail on what exactly we are paying.
Q2) What are the additional costs contributed to the exorbitant prices of Malaysian cars?
Q3) From the tax collected on each car, what have the government done or where does the money go or are spent?
Q4) The road conditions and public transportation are still unsatisfactory.
Thank you for your kind attention.
i agree wat you said, ,be more transparent…..but they wont care about u….zzzzzzzzzz
@cisitalia:- I like this figures you posted, it gives a clearer picture of our car pricing. Now let’s see how BN may answer you questions. Let me imagine:
Q1) We are already being transparent, that is, depending on how we defines transparent.
Q2) The additional costs are directly proportional to our pocket costs and needs.
Q3) The money, of course, goes to our “Perbendaharaan Negara”. How do we spent? It is treated on a need to know basis and you all don’t need to know.
Q4) Our road conditions and public transportations are superb! Compared to Zimbabwe, of course,…
Thank You,
Kami yang menjalankan tugas,…
I have lived in Zimbabwe for 4 years, Harare to be precise, and I can tell you that the roads there are so much better than here. When i came back here the road conditions really surprised me. Buat rosak suspension je jalan sini.
Continued
5) The extra monies collected from poor consumers needed to finance our cronies, AP Kings and the boot-lickers super luxury lifestyle with 4 wives, bungalow (i.e. collapsed at Titiwangsa lost one also tak rasa), benz, ferrari, Lambo, etc line the garage.
6) We needed political fund to finance purchase of USD 24 Million ring, Birkin bag, oversea official trip for “tour-and-shopping”.
7) We also need to finance project IC so let million of illegal vote to preserve our power.
8) We also need to finance cyber-trooper together with our “poor and ugly” loyal blind supporters to brainwash (i.e. PT Blog) the consumers that Jaguh Kampung No. 2 is our sacred cow need to be defend, it is iconic project, national car, create job, transfer of technology or whatever craps can be spew from their filthy mouths!
9) To be continued ………
fully agree on wat u mentioned.
pls abolish AP although i still cant afford to buy luxury car.
Its shows in this country we are so poor that we need to borrow money (car loan) to pay huge taxes (i.e. excise duties on cars), on top of our cars.
over here the gov don’t care about the average people.
must teach them a lesson.
You’re mostly correct. But it’s not only for UMNO cronies but MCA and MIC as well.
Totally agree with you. Why must excludes those corrupt Chinese and Indian businessman or political figure? I’m not sure those opposition leaders can afford much with their MP allowance eh?
Totally agreed with you. Please spread this link around:(http://www.ice.gov.it/paesi/asia/malaysia/upload/173/Automotive%20Sector%20Overview%20-Jan%2012.pdf). In this report if you turn to page 12 & 13, you can clearly see that even European cars assembled by Crony Companies eg DRB HICOM & INOKOM. What if we open our market and let the manufacturers themselves directly invest in Malaysia and manage top to bottom. Allow them to manage accordingly.It will surely bring down cost further.We as consumer can then monitor, study, compare and purchase their product in an open transparent market environment.
…but where’s the distributor profit?
Sigh~~and now they make reduce import tax the best thing to happen for the NEXT THREE FREAKING YEARS???
how does that affect the car prices?? And why should we feed the cronies even knowing that they are cronies??
I support Malaysian Made cars~~but with all those CRAZY taxes to protect them~~how can we improve??
so what cars frm japan will be cheaper? wish? estima? alphard?
Let us vote pakatan and let them reduce the duty
in one stroke instead of dragging it for years and
years and get it over with.
It will only be a one time pain.
Don’t tell me you are not going to buy cars in the
future or your children are not going to buy cars.
At list Proton, their are willing to participate on the changes…it’s about time…you f…..g!! vendors deal with it…
Whatever announced, the more important question is whether it will reduce price or not? Or, sellers will get more profit margin? Or, excise duty will be increased?
then, have to wait until 2016 to change my ride arr…
U see? How they treat middle class and lower class income citizen?all upper class can njoy exemption on higher cc car..0% import duty!! Who d hell rakyat miskin like us gonna buy 3.0 l car!!? This is what we called capitalism..change!
Decrease import duty but increase excise duty to compensate the difference.. yeah, we heard this a few years ago! hahahhahaha dicapati
To Paultan Admin,
the like / dislike buttons are disabled?
or did you get a request from “someone”?
I just noticed it, for all stories, actually. We’ll get on it. Thanks for the heads-up.
i’m searching for a car this year.. or maybe need to wait until 2016 hehehe
buy now.
no point in waiting as i’ll be just like previous years. they’ll keep on extending.
or just wait till after GE. see if someone else got the power. if it’s the same people most likely there’s not gonna be a change to the policy, just like the past 50 years
so, you still live in the 60’s ? just because there is no changes for the pass 50 years in your opinion.
wait till election result. if it’s still the same people, just buy without waiting.
most likely it’ll be extended just like before.
What’s the engine cutoff size? I just checked with Mazda as I booked the nwe M6, they told me it is up to 2000 cc but I can’t find definitive results from the net that it is up to 2000 cc ONLY. Paul Tan’s website said another source covers until 2500 cc.
I dont care what u wanna do…
Reduce import tax ka? reduce excise tax ka? reduce sales tax ka? reduce bullshit tax ka?
If i didnt reduction of selling price or if rakyat still need to use 9 year loan to buy a car… this is merely lip service….
When the buying stop, the killing can too…
When we work together, we can win this…
I dont care what u wanna do…
Reduce import tax ka? reduce excise tax ka? reduce sales tax ka? reduce bullshit tax ka?
If i didnt see reduction of selling price or if rakyat still need to use 9 year loan to buy a car… this is merely lip service….
When the buying stop, the killing can too…
When we work together, we can win this…
i agree but unfortunately majority of m’sia want to LOOK GOOD badly.
i agreee.
but unfortunately majority can’t put a side the need to LOOK GOOD.
We cannot afford CBU cars from Japan even though import duty will be abolished. Majority of us cannot! Take example of Mazda 6 2.5 (one of the cheapest CBU cars offered in Msia) at almost RM190,000. Without import duty it will be around RM165,000? Still hard to own one. What we need is abolishment of excise duty + AP while maintaining import duty at 15%. Then introduce a flat GST rate of 15% on all goods. In the mean time, reduced on income tax rate.
until the storm settle, i don’t put high hope that the final selling price will reduce. reduce tax could mean higher profit margin for the cronies.
yeah, I have a feeling we will be capati-ed by MITI once again after the election. Afterall most of the car importers belong to the cronies. So they can maintain the price with higher profit margin, increase excise duty, increase AP cost, etc etc.. However, whether this promise is kept or not in the end it still don’t give me any benefit. I still cannot afford CBU cars, let alone better CKD cars.
This is related to the FTA signed with Japan and Australia a longgggg time ago and now MITI just announced on their action plans to reduce the import tax till Zero in 2016 just a week after PR announced their manifesto. Wow! So fast transformation from MITI.
How about motorcycles???
102k compared to around 50k for Yamaha R1.. Go figure.
http://www.yamaha-motor.com/byob/r1/13r1.aspx?mid=6
funny, why suddenly decide to reduce tax? so that you have excuse to raise road tax or insurance? there’s always a catch, and even if they don’t raise the cost on other things. Why not instead of giving us discount on new cars, why not give us back our tax money back from all the previous cars? if you can suddenly reduce tax how come this didn’t happen 20 years ago?
there is always something fishy or hidden in any “looks good” policy change by B-eNd.
This is an insult to Malaysians
Wonder what will happen to my incoming CBU Mazda CX5 price.
“until the buying stop, the killing will not stop”
similarly, ”
until the buying stop, the price will not come down”
I called Bermaz a while ago to confirm. They said CBU 2000 cc marginal cut only. When I asked for MITI guideline, he said don’t have BUT the he made the conjecture based on his reading on the internet. Yeah, right!
Pengumuman MITI Tidak Bawa Kesan Kepada Harga Kereta
http://bm.harakahdaily.net/index.php/headline/17089-pengumuman-miti-tidak-bawa-kesan-kepada-harga-kereta
i am not very optimistic the price will reduce proportionally. the damage is done to the maximum since very M’sia has the pride of having a national car. the dealers aka cronies are going to benefit the most from whatever import/excise duty reduction.
don’t forget supply & demand determine the market price. luxury or big car is not a NEED but is just WANT. unfortunately majority want to LOOK GOOD.
Totally agree with u
Can anyone provide a list of CBU Japan cars available through authorize dealers in this bolehland?
Yesterday said no plan to cut…
now said they wanna cut~~
how can a government be so inconsistent in their policy…pressure from other parties? or just trying to cheat rakyat again?
Import duty reduce? increase excise duty?
sigh~~hopeless policy, lets wait and see what will happen next…but i am really tired of waiting~~
One of the biggest joke of the year.. Yes, they do give goodies, but they’re very insincere(CBU From Japan and Australia?? They all are premium cars).. And giving out goodies when the election is nearing? Prrfttt.. I’m not impressed. No vote for Gomen from me on next GE..
What car is imported from Australia and Japan?
other than mazda I can’t think of others!
BN did not forget the high middle income people for their Tax contribution. now you can enjoy CBU car @ cheaper price. yeah!
2016, good that’s when my current ride’s loan ended..so I just be patient aahh
Lets buy proton cars then
Free fr any duties
Lagi mau TIPU
Great idea actually. Other than not buying new car at all, buy a Proton or P2. Buying an AP car makes you a great supporter of cronies. Don’t make sense? Think about it.
All should read carefully.. this is import tax not excise tax. Import tax was fix at 30% while excise tax will still be imposed and the amount vary from 70% to 105%. the other tax was sales tax which is fix at 10%. do your own calculations and you will find out theres nothing much to cheer about.
spot on ….
this is just a screensaver la…look so nice. with blink2 words that bouncing here and there. but when you ‘on’ the PC, you realize that you still using window 92 software?
what kind of car from Aussie do we import? our ford import from thai. plus engine 2.5 above??? so most of JDM car is not eligible even the hybrid car.
and i believe that this only effect to franchise importer only, grey importer not include.
so who will benefit from this?
Im not too sure if Pakatan will stick to their word on reducing car prices to levels mentioned in the so called manifesto, as the problem runs much deeper as simple as it sounds on the surface. Low car prices, low fuel price, terrible roads and useless public transport system. Sounds like a recipe for disaster to me. Heck, il be in support for Pakatan this time around, but i only can hope they are capable of running the economy and malaysia as a whole. It is a gamble indeed
I just want to throw one idea to those who are still not aware. Imgine, you buy a Honda city for 90k..the car price is just 50k in langkawi.that is inlcuding dist profit..dealer profit..with small amount of tax. Meaning that you r paying extra 40k with interest imposed on you monthly to gov. Which you dont know where they spent. Then ur car is not like a house..your car value will depreciate 5 -10% every year..then aftr 9 years, ur car got no RV..n hve to buy new car whch will b d same thng..repeating..again n again..until you die u r still paying for d tax..just imagine if we dont hve this protective policy..our live will b better..more money to spend to fmily…edu..food…hmmm..poor malaysian.
Cannot do this cannot do that, impact too huge, because too many friends are involved, nanti hilang kaki kerusi saya. For a new rule, all this kaki kerusi are his enemies, no need to care too much as long as it is right thing for the rakyat. Sila melancong ke Pulau Pinang.
Hi @on the fence,
VOTE PAKATAN SINCE WE HAVE NOTHING TO LOSE BUT EVERYTHING TO GAIN.
Since we known the gomen have been insincere, dishonest, perompak, etc since Merdeka, we the citizen should say “YOU ARE FIRED”.
So Ford Malaysia will bring the Australian ford. Chevrolet will bring a re badge Holden Commodore. Wonder how they will tax a 6.2 V8. Road tax alone sure die.
Only benefits the rich. What about the majority people. No benefit? Neglected
I hate Naza. Proton. If none of them, we will be driving safer and better cars. And cars CHEAPER than saga.
initially i was like you. hate p1 especially and the high tax. later only i understand dealers still can sell at high price and still make huge profit even with high tax.
CONCLUSION:
“Until the buying stop, the price will not go down”
BUT
“Until the LOOK GOOD mentality stop, the buying will not stop”
All this are just WANT and NOT NEED. Demand and supply determine the selling price.
how about perodua??r u perodua salesman?
It is excise tax that make cars expensive in Malaysia.
enough craps from our current Government…
how much will hybrid cars cost when the excise duty and import duty kicks in??
is the comments closed?
“Nevertheless, just like all the other automotive industry players, any policy shifts towards market liberalisation has already been anticipated by Proton, and the company is optimistic that it can compete in a fully liberalised market with affordable and good quality cars for our customers.” ?????????
WTF? Car from Australia? well, as usual this is one of the G trick to sapu vote by misleading us. We dont even have Australian car brand, talk bout reducing car tax from Australia huh… plain bullshit. Bring in Holden and Ford performance vehicle then u r talking. but im all cool with tax on Japs car. at least we still can have GTR lexus and infiniti at lower price. but from news that even they reduce tax, car price wont reduced by much. they will find many ways to korek duit rakyat.
wait…wait…wait…until 2016….haiya….reduce the price NOW!!! see only the rich can afford hybrid!!!
Er.. cheaper recond car? Wish, Estima, Alphard…
i don’t think so, Japanese Yen has been dropping so much but i never see those japan recond cars prices are coming down, whatever savings the car importer get from the import duty will only go into their pocket as extra profits!
That’s why we need Public Relationship to open up the market, there is a chance.
They somehow still got another way to ‘tax’ people’s money….reduced the tax but increase the loan interest…just wait n see…say no to BN!
MITI,
PLease dont bullshit the rakyat……
The more you talk, the more BS comes out.
You only make yourself a bigger fool than you already are.
Think before you vote BN, G said that they will not reduce the excise duty else the country will bankrupt. So they rather the rakyat suffer from paying 9 years loan than to reduce conies income? How many Malaysian got bankrupt from this? For those saying PR is the same, how you know if you don’t let them try? It is time to change. Don’t be afraid of change.
As long Proton is still around, this will never end. Don’t tokok.
Proton, tutup demi Malaysia lah…
Proton, when you tutup kedai? Tutup demi Malaysia lah…
my fellow malaysians.. how long more are you going to let the current government lie to you? think….
when there is no tax and duty proton will no survive.they keep postpone and postpone as we can see here.everytime election they will bring up this and after election they will postpone.
In places like Austraia – Australia made is promoted so much to keep ppl buying Australian products. In asia that culture of buying local does not seem to exist.
Don’t talk craps – you don’t buy I-phone or other smart phone, just used the fix-line Made in Shah Alam Panasonic phone supply by Telekom Malaysia!
Don’t try to insinuate that we should support Jaguh Kampung No. 2 expensive yet low quality product. Buying is not culture dude! It is spending behavior!
what choice do we rakyat have really? our neighboring country in the south are also being haunted by the high price of motor vehicle but at least they have a very efficient public transport to rely on.. with a larger land area we certainly need better coverage of the public transport network across the country.. not just focusing on the big cities.. and with the sky-rocketing price of houses these days makes it even worse.. you can only buy or rented affordable houses which are usually located far away in rural area..
nowadays majority of us rakyat buy cars using loans from banks.. although everyone knew that the car price already included all the duties, not many are aware that actually we are being forced by the gov into paying the taxes using loans, not from our direct income!! let me rephrase it.. TAKING LOAN TO PAY TAX!! how absurd is that!!
It look like MITI is doing a good job for rakyat… but it all seems as wayang. Pls read this:
http://rafiziramli.com/2013/02/pengumuman-miti-tidak-membawa-kesan-kepada-harga-kereta-menguntungkan-golongan-kaya/
Better change the govt.AP ‘s had been given to the kronis. They have make enough money from us.In Myanmar cars are more cheaper and can import direct.
Cheaper than Malaysia.
I am truly fed up with the current policy.Hard to change them.Change the govt and the corrupts will be accounted for.
ENOUGH is Enough
Indon,thai,myanmar all got cheap cars,but is everyone can afford to buy cars?some not even have motorcycle.i support the move to remove excise tax and alll,but please dont compare with other countries.
Yup, Import Duti down gradually. How bout Excise Duty?
Good evening.I would like to know if a dealer can import a car for me.It’s almost impossible at this point or I’m not going to the right people.I want to import a used car,BMW e46 318i 2.0 MSport sedan with sunroof,year of make 2005.I can’t seem to find it here.Please advise or share your thoughts,thank you.