Toyota Prius and Prius c buyers saved a collective total of around RM496 mil in 2013 with their purchases

05-Prius-Exteriorb1
The Toyota Prius – used to be RM143k, is now RM216k

Did you know that Malaysian Toyota Prius and Prius c buyers saved an estimated collective total of RM496 million last year in terms of import and excise duty exemptions when they bought these two hybrids? That’s just for the two Toyotas, and doesn’t include the amount in duties saved with the purchase of other CBU hybrid vehicles that qualified for exemptions, such as those sold by Honda, Nissan, Lexus and Audi.

At about half a billion ringgit, it’s a fraction of what the government earned from vehicle import duties and excise duties in 2013. It was revealed at the NAP 2014 announcement that the government earned about RM480 million from import duties and RM7,308 million from excise duties in 2013. So total income would be about RM7,788 million – RM480 million is just 6% of this amount.

With total government revenue estimated to have reached RM208.7 billion in 2013, the total import and excise duty income of RM7.8 billion represents only 3.73% of the pie.

nap-2014-tax-1

We derived the RM480 million number based on the 1,449 units of the Toyota Prius and 6,941 units of the Prius c sold in the country last year, multiplied by the estimated import/excise duty. We simplified the calculation by assuming every unit of the Prius is the more affordable non-Luxury spec.

For the Prius, the estimated duty paid based on the difference between the duty free price and the new 2014 prices is RM73,400.52, while for the Prius c, it’s RM56,170.43.

Incidentally, these buyers would also have saved more in the form of car loan interest that would have been charged on a higher selling price brought about by the full duties. We would have also liked to calculate another set of figures based on Honda’s hybrid sales numbers, but the new prices for the company’s CBU hybrids with taxes have yet to be announced.

Prius_c
The Toyota Prius c – used to be RM97k, is now RM153k

These are all ‘what if’ numbers, of course – if the Prius and Prius c were priced as high as the new 2014 prices in the first place, sales figures wouldn’t be as high as they were. So the amount that the government would have earned from the duties for these two cars would be lower.

But then again, TIV is pretty much constant, and if a buyer doesn’t buy a Prius, he or she would be buying a Camry or a Corolla Altis at that price point instead. So no matter what, there is a certain duty that will be earned per unit of car sold, and the government lost duties for 8,390 Toyotas.

Does a reduced need to subsidise fuel make up for lost excise duties?

The Toyota Prius and Prius c are cars that are far more fuel efficient than a similiar sized model. So, the government would be getting savings in terms of less fuel to subsidise at the pumps.

Based on data from Fuelly, the average fuel consumption for a 2013 Toyota Corolla is about 7.7 litres per 100 km (official figure is 6.9 L/100km). The average for a 2013 Prius is 4.8 litres per 100 km (official rating is 3.9 L/100km). Based on a 20,000 km per year commute (industry standard warranty mileage cap per year), this represents a savings of 580 litres per year.

fuel-subsidies-june-2014 091

Based on the June 2014 Subsidi Oleh Kerajaan note found at every fuel pump, the government subsidises RM0.71 per litre of RON95 sold. This means a Prius driver would save the government just RM411.80 every year in terms of fuel subsidies, which is really not much in the grand scheme of things when you take into consideration how much in duties the government has foregone.

Just take note that generally people who bother contributing data to Fuelly are more likely to drive in a very fuel efficient manner, which is why they are part of the community and contribute data in the first place. So these reference consumption numbers are likely to lean towards the lower side of things.

So, the exempted duties and the reduced subsidies don’t really balance out positively for the government, but does everything they do have to be “profitable” when it comes to the rakyat? And think about it – can you really put a price to a better environment?

Can you put a value to reduced emissions for a better environment?

A Toyota Prius is rated to emit only 89 grams per kilometre of CO2, while the new Corolla Altis emits 160 grams per kilometre of CO2. That’s almost half the amount of emissions, and while a Prius is stuck in a traffic jam, its combustion engine wouldn’t be running at all, helping reduce the amount of smoke that pedestrians have to breathe in.

Hybrid incentives still exist, but import duty and excise duty exemptions are now limited to locally-assembled hybrid cars from 2014 onwards. The Honda Jazz Hybrid and the Mercedes-Benz S 400 L Hybrid are currently the only cars that still qualify for the duty exemptions in Malaysia. A locally-assembled Nissan Serena S-Hybrid will enter the market soon, but stock of the duty-exempted CBU version is still available.

honda-jazz-hybrid-yorii 009
The 2014 Honda Jazz petrol has already been launched – we’re now waiting for the hybrid

Hopefully, these cars will be joined by more cars that the general public can afford. The Jazz Hybrid is still the last-generation model – it’s set to be replaced by a new Jazz Hybrid soon, and this will eventually be joined by a City Hybrid. Toyota will be offering a locally-assembled Toyota Camry Hybrid this year, but that is expected to be priced close to RM200k. UMW Toyota doesn’t really have a replacement for the Prius c, which was affordable to a lot of people with its sub-RM100k price tag. It looks like the Jazz Hybrid will be the sole competitor at that price range.

Still, is the idea of more affordable hybrids in our market wishful thinking? The situation remains much the same on the electric vehicle front, but there’s some speculation coming about that import and excise duties may again be exempted for electric vehicles this coming Budget 2014, which would be beneficial to car companies who have invested in bringing in EVs like Nissan, Renault and Mitsubishi.

Electric vehicles were only introduced towards the end of the CBU hybrid incentives period, so there wasn’t really much time for the market to get to know them. They are however a more expensive proposition than hybrids, so the take-up might not be significant.

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Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • Stupid 200k car

    Like or Dislike: Thumb up 52 Thumb down 23
    • burong on Aug 01, 2014 at 11:33 pm

      Lets vote like-remove car tax, remove fuel subsidy. Dislike – remain current situation, n gov use excise duty small % pay the fine to penalty of not following the afta agreement.

      See, gov do the math, better kena fine by speeding rather than drive 110km/h. N where does the remaining goes?

      Well-loved. Like or Dislike: Thumb up 88 Thumb down 4
      • Obviously (Member) on Aug 02, 2014 at 3:40 am

        If the fuel subsidies are removed, then the demand for fuel-efficient vehicles (because then, the savings would really make a difference) would actually go up but it’s not just the hybrids that are fuel efficient. There are some fuel efficient small cars available at the moment like the Mitsu’s Mirage-Attrage, the Kia Picanto and the Perodua Viva. But yea, they’re really smallish.

        In the end, it might also cause people to change their living habits too to save on fuel.

        Like or Dislike: Thumb up 38 Thumb down 0
        • Government Fail its People on Aug 02, 2014 at 11:30 am

          The people of Malaysia should not beg for clean air. To breathe clean air, it is our right. All over the world, governments are moving to hybrid to give their people cleaner air.

          In Malaysia, government blackmails us to get clean air. One day tax incentive is on for hybrid, then another day, tax incentive is off for hybrid.

          The Government of Malaysia blackmails its people for the right to breathe clean air.

          UMW is government and government is UMW. Both are one entity. So whatever UMw does, it is the government is doing because UMW is purely a crony company.

          The whole purpose of a government is to look after the well being of its rakyat and provide the rakyat security. That is the definition of a government. A government collects taxes from the rakyat, in return, they provide a safe, secure country for its tax paying rakyat.

          In this case in Malaysia, Malaysians have been suffering with dirty fuel and higher emissions for over 15 years when all over the world they have upgraded their fuels to give their people cleaner air. They also promote cleaner hybrid engines to provide cleaner air and they give their rakyat cleaner petrol and diesels that emits very low Co2.

          Don’t talk about cars now. Lets talk about the health of a nation. Because of the dirty petrol and diesel and not promoting hybrid cars, the air pollution is so hazardous to the rakyat, it is the result of countless of cases of lung infection, cancer and respitory illnesses. All our hospitals are full daily mainly because of respitory illnesses. Older people suffer most because of polution by the low grade fuel given by our government.
          Have you seen your old mother and father pant and gasp for air?

          That is because the government of Malaysia has failed its rakyat giving them cleaner air to breathe. They don’t care for the 30 million people suffer and the environment. They want you to use more dirty petrol and fuel and pollute the environment.

          The Environment Ministry and the Minister has no balls. His job is to ensure a cleaner environment.
          All over the world, the oil companies are so scared of the governments and they comply with all the Euro5 regulations imposed by their caring governments. But not in Malaysia. Government does not care at all about the Environment at all. Besides Hybrids, government must ensure all companies come out with Hybrids to promote lesser emissions into the environment.

          The Government of Malaysia has failed its rakyat in giving a clean environment, safe and secure country for the rakyat to live in. The government takes the tax payers money in vain here. It is not doing it job. It is as bad as some African war torn country. Don’t be fooled just because Malaysia has no war and is supposedly peaceful. The dirty air and environment itself is war on your lungs and respitory system and this war is far worse than your physical war of guns, mortars and tanks. It is a silent killer. The dirty fumes emitted from vehicles because of the dirty fuel and non hybrid promotion kills more people per annum than any war will.

          It is even worse when not only we don’t get clean fuel, but in the capital city, we cannot even get clean and uninterrupted water as well as our women cannot even walk safely in the streets without feeling fear of snatch and rape. But our Government has time for big projects like Iskandar etc but not bothered about the cleanliness of the air, water and public safety.

          Our government has time to play a chess game with people’s lives and health in Malaysia, gambling their lives away with their lalang attitude towards hybrid tax incentives.

          Well-loved. Like or Dislike: Thumb up 76 Thumb down 6
          • Operation-Manager (Member) on Aug 02, 2014 at 5:16 pm

            Rancangan Malaysia ke-X: every 5 yrs

            Automotive Policy: change yearly. Flip-flop mixed planning indecisive no mission not so sure what should be next

            Like or Dislike: Thumb up 18 Thumb down 0
          • Doctor Car on Aug 02, 2014 at 5:57 pm

            Actually smoking at public places, second hand smoking kills the lung, the elderly n the children. exhaust fumes from cars to a certain extent can kill you, but they actually kills us less than the smoke from the cigarettes.

            Like or Dislike: Thumb up 17 Thumb down 0
          • Heng Lee on Aug 04, 2014 at 5:00 am

            ‘All over the world, governments are moving to hybrid to give their people cleaner air.’

            Neither Europe, nor South America nor Russia are ‘moving to hybrid to give their people cleaner air.’

            Define ‘All over the world’.

            Like or Dislike: Thumb up 5 Thumb down 8
          • albert on Aug 04, 2014 at 11:22 am

            well written and argued!

            Like or Dislike: Thumb up 0 Thumb down 0
          • Habis lah Hybrid Owners! on Aug 04, 2014 at 11:42 am

            Habis lah Hybrid owners!. My buddies in Honda and Toyota already confirmed Hybrid Battery going back to full price. Something like RM12k to RM13k.

            The Electric Coil and Eletric parts also going to naik so much. Toyota Prius Eletric Parts cost more than the battery!

            Like or Dislike: Thumb up 1 Thumb down 2
          • Hybrid Cars = BMW prices on Aug 04, 2014 at 11:48 am

            Soon hybrid owners are gonna pay BMW prices for the parts. Maybe the Lexus CT200 guy got money but what about the Prius C and Civic hybrid owner?

            Like or Dislike: Thumb up 1 Thumb down 2
          • Same L0rrr on Aug 04, 2014 at 1:15 pm

            The Prius has no timing belt, no timing chain, no aircond belt, no CVT chain, no power steering pump, what to change?

            When your petrol car travel 100k km, the engine rotated 130k km.

            When Toyota Prius travel 100k km, the engine only rotate for 70k km, another 30k km mileage is on battery.

            See whose car is more reliable and who need to change car first?

            The hybrid is changeable every 300k km only. With that mileage you properly already change new car. RM10k battery vs your new car RM50k, which one cheaper?

            Simple mathematics.

            Like or Dislike: Thumb up 7 Thumb down 3
          • Toyota Salesman Goreng Goreng on Aug 04, 2014 at 3:22 pm

            Already Hybrids had bad RV, now with this news, all Hybrids are going to lose RV like crazy. ALl this moving parts bull is from some Toyota salesman.

            The fact is, Hybrid owners now MUST top up their loan if they sell the car. RV has dropped so much.

            Car salesman in Used Car dealerships now begging people to take their Hybrids.

            Anyway, load of bull. Where got Prius got no timing belt, aircon belt etc etc? When running on petrol, what does it use? Pakai hotak lah salesman.

            Now Toyota sales are so bad, salesman come here and goreng gila gila.

            Like or Dislike: Thumb up 4 Thumb down 2
          • Toyota Top salesman Puchong on Aug 04, 2014 at 5:44 pm

            He is right. Prius is empty. That is why got nothing inside. No timing chain no CVT, no air cond , no engine, no sound system, no geargox. Nothing to change man. Can run more than 100 yrs maintenance free….. hurry before its too late. Stocks are limited. B

            Like or Dislike: Thumb up 0 Thumb down 1
          • Same L0rrr on Aug 04, 2014 at 6:07 pm

            Now you see how naive the Toyota basher are.

            Toyota Hybrid Synergy Drive (HSD) running on
            1. Electric power steering
            2. Electric air cond compressor
            3. Planetary gear
            4. Atkinson Engine

            Go learn more on Wikipedia, you think they sell you RM213k for nothing? These are the advanced and reliable parts. Not like the legendary dual clutch or the loud but powerless Campro.

            When you comment naively, you only show the world emptiness in your brain.

            When you complain Toyota hybrids are expensive, think deeper: Why!

            Like or Dislike: Thumb up 2 Thumb down 2
        • Ray (Member) on Aug 02, 2014 at 2:46 pm

          Yeah it’s a sad fact that our demand for larger vehicles are usually limited by the fuel consumption factor. As a result many of us end up with small Japanese cars that are either overpriced or uncomfortable. Those who have a bit more to spend will also go for Japanese C or D segments, which are reportedly more fuel efficient than their Korean/Continental competitors, the latter being a serious fuel burner. In a different topic, with similar posts and income levels, many of us can easily afford a large Camry in the US instead of sticking to small cars like the Vios. Blame it on our sky high taxes and excise duties.

          On a side note, the Viva is fuel efficient, yes, but not quite for its size. Mine does about 12-13 km per litre in city driving, which is about the same as my parents’ 1st gen Vios under similar driving conditions. My advise to potential Viva buyers: avoid it by all means. The 3-cylinder engine is a nightmare to drive, powerful for its capacity but it’s as loud as a steam powered train.

          Like or Dislike: Thumb up 13 Thumb down 1
          • Low Budget on Aug 03, 2014 at 9:44 am

            ..the latter being a serious fuel burner..

            Not really agree with your above statement, all 4 cylinder cars (asuming non hybrid or EV) with the same cc and kerb weight no matter what make will consume more or less the same amount of fuel per certain distance, though the differences could be around 10-15% margin which really are peanuts in term of money save on fuel.

            Like or Dislike: Thumb up 0 Thumb down 0
      • All HYBRID buyers Suffer Now on Aug 02, 2014 at 11:26 am

        What nonsense is this? All over the world, governments are moving to green and hybrid cars. It is to promote a cleaner environment. Give us cleaner air to breate. Why must Malaysians beg for the right to breate clean air?

        Malaysian government opposite. One day switch on, another day switch off the tax incentive.

        Current Prius owners are ALL crying. Because your insurance goes up substantially.
        You see, the market value of your Prius or your Merc Hybrid now has jumped up. So, if the car gets lost, the insurance company will pay you the current market value of the car to replace the car. You will soon pay double the premiums you have been paying.

        So if you bought your Prius for RM130k, now, you have to pay insurance for RM250k (the new price of the prius)

        The same with the Mercedes S400 Hybrid. The insurance will jump up to a RM900k car from a RM588k car. No matter how rich you are, you will feel the pinch to insure a car close to RM1 million.

        Second issue, parts will go up substantially. Now, the Hybrid battery also will go double in price to replace plus all the expensive electronics that deal with the Hybrid system

        Third issue, nobody is going to touch the Prius Hybrid or the Mercedes Hybrid in the 2nd hand market. Because it is like yo yo. People will think, if I buy now, government may reintroduce the tax incentive again and the car will drop in price or go up in price. Like YOYO. Now go to any used car dealer selling a Hybrid Prius, they will beg you to take the car. Last year before the tax was pulled, the action and don’t reduce a sen. Now they are begging you to take their Prius. I just went into a 2nd hand dealer, the guy beg me to take his 2012 Prius Hybrid for RM85k. What a big fall from RM139k.

        2nd Hand Market for all Hybrids now in big limbo and everybody is so scared to touch any hybrid in town. It is like a volatile penny stock. Anytime can go up and down.

        The Government has thrown shit on the faces of all Hybrid owners. At first, Government say NAP and EEV cars are the way to move forward, then when companies like MBM invest so much to CKD their S400, government do another flip flop and pull the incentive away.

        Government has thrown not only shit on the faces of every hybrid buyer but also on car companies like Honda and Mercedes who invested so much to CKD their Hybrid cars here.

        All Hybrid owners now, your saving on fuel go down the drain. Your insurance premium will go up, parts will go up and your car got no 2nd hand value. Yes you can get 800KM on a full tank but it can never compensate the loss you are going to pay now.

        Madani from MAI, please have some balls lah. You proposed all this EEV in the first place. Now just pull the plug. Now all the hybrid buyers are going to suffer. As I said above 3 factors will shoot up in price.
        1) Price of Insurance
        2) Price of Spare Parts
        3) Car depreciates like hell

        Like or Dislike: Thumb up 37 Thumb down 17
        • Operation-Manager (Member) on Aug 02, 2014 at 5:29 pm

          Mdni: sorry bro, out of my control. Both balls kept inside refrigerator freezing my sprms

          I have no choice.

          Like or Dislike: Thumb up 11 Thumb down 2
          • Same L0rrr on Aug 04, 2014 at 11:40 am

            You think Prius/ Prius C are expensive car? It help you save money on maintenance and taxes.

            Toyota cars are good and not expensive, government taxes make it expensive.

            Why government did so? You know I know everyone know even Proton fanboys know.

            Like or Dislike: Thumb up 2 Thumb down 1
        • Really ah, oh dear the sky is falling lets all go jump off a cliff like lemmings

          Like or Dislike: Thumb up 2 Thumb down 4
        • I suppose the spare parts does not have tax exemption…because i know someone replace her prius battery for 12k recently, previously also 12k right?

          Like or Dislike: Thumb up 4 Thumb down 0
        • Your comment is completely irrelevant.
          I’m a hybrid car owner, who is the deal with penny stocks and people throwing off stocks. That’s completely insane!

          Hybrid owners before 2013 are mostly relieved with their car that they have paid so much lesser in taxes to the government. In fact if I’m to buy another new car I seriously don’t know what to get cos my ct200h is so great and at 172k I seriously can’t find anything better.

          Get realistic, don’t never eat grape say grape sour. M
          Such a loser

          Like or Dislike: Thumb up 0 Thumb down 0
      • Kena Tipu Kena Tipu Kena Tipu on Aug 04, 2014 at 11:13 am

        Buyers of Hybrid cars kena back stab. I like most owners bought Hybrid to save money. I like most owners did not buy for environment but to save $$$ in my pocket.

        Now rugi so much. My Civic Hybrid November 2013 can only fetch RM80k with used car dealers. But Civic 1.8 Petrol can still fetch RM100k. I buy RM115k. Depreciate RM35k in 9 months.

        I am so angry with the gomen. Kena tipu 100%. Honda SC also told me battery also go back to full price.

        Like or Dislike: Thumb up 2 Thumb down 0
    • Which one better money well spent?

      RM496 million saved for car buyers ?

      RM496 million for BR1M drug addicts ?

      RM496 million for partly refund to Proton’s 1.7 billion request ?

      Like or Dislike: Thumb up 23 Thumb down 8
    • i live and work in kl..
      with the terrible peak hour traffic, hybrid car is a great form of transport..but now no chance to buy :(

      Like or Dislike: Thumb up 20 Thumb down 3
  • Limahpek on Aug 01, 2014 at 10:50 pm

    In summary, govt doesn’t care about long term environmental or financial well being of its people but pocketing every single cent possible from everything they could get theirs hand on…I don’t believe the petrol sold were subsidised completely as they claimed to be..

    Well-loved. Like or Dislike: Thumb up 59 Thumb down 5
    • Look how silly the excuse given to stop the zero duty for hybrid cars:

      “Mustapa said the import tax and excise duty exemption which had been given to hybrid and electric cars for the last four years had not brought much spill-over benefits to Malaysia, besides lower fuel consumption and emissions.”
      “The imported electric and hybrid cars did not create new jobs for locals in the manufacturing sector,” he said.”
      http://www.thestar.com.my/News/Nation/2014/01/21/Last-chance-to-buy-them-cheap/

      Like or Dislike: Thumb up 15 Thumb down 0
  • Anti Crony on Aug 01, 2014 at 10:51 pm

    Base on this, now i can imagine how much money the G squeeze from the rakyat with most of the vehicles with full duties, the amount is simply unimaginable, yet i still find it hard to believe our national debt is soaring high.

    Well-loved. Like or Dislike: Thumb up 54 Thumb down 1
    • Obviously (Member) on Aug 02, 2014 at 3:20 am

      Hard to believe? With poor wealth management, anything is possible.

      Like or Dislike: Thumb up 38 Thumb down 1
      • Operation-Manager (Member) on Aug 02, 2014 at 5:22 pm

        Totally agreed, leadership issue, captain can’t get right direction so all crews suffered

        Like or Dislike: Thumb up 8 Thumb down 0
      • Tongkang on Aug 03, 2014 at 1:08 am

        More & more people SUFFER from mis-management & THAT FAILURE they back charge to the innocent RAKYAT.

        and More & MORE people CURSE the GOMEN from day to day as intelligent grows.

        Gomen FAIL to understand BLESSING & CURSE asking people to WORSHIP them, instead work hard to serve the PEOPLE.

        Please find other WISDOM to create the economic growth rather than by Tax & DUTY.

        Do not allow the PETROL CARD from con-company DATA*niC dominate the Malaysian.

        EASY – big car already TAXED more than Kancil or EX-5. Big car purchasers has already done charity to help the POOR.

        What You need only to control the Country’s GATE & INSPECT BIG AMOUNT PURCHASE alert ONLINE from PETROL STATION especially the Northen Border/ make them JUSTIFIED.

        You will cursed by God by avoiding this message.

        Like or Dislike: Thumb up 1 Thumb down 1
    • Kangkung on Aug 04, 2014 at 9:27 am

      Let’s wait and see, getting more and more poilicy coming up to squeeze rakyat’s money.
      When most malaysian awake?

      Like or Dislike: Thumb up 0 Thumb down 0
  • biasalah malaysia masih aman

    Like or Dislike: Thumb up 9 Thumb down 29
  • sudonano (Member) on Aug 01, 2014 at 11:36 pm

    A very interesting and well written article I must say….

    The thing is, G cannot assume that manufacturers will immediately open shop for CKD hybrid production in Malaysia, considering our low hybrid purchase power (compared to non hybrid cars) and already high prices. If you see, they never gave manufacturers prior warning (i.e. a 5 year gap) that CKD hybrids will be the only hybrids that are to be sold with reduced duties. And the G also has to realise, many manufacturers are making a gamble here. No one knows what is going to happen at the end of 2015, will the duties be back? If yes, then the CKD hybrids are going to skyrocket in price like the CBUs…. Is anyone going to pay 150k for a Jazz Hybrid at that point? Of course not. This uncertainty is what is stopping many companies from committing, cause if it happens and no one buys hybrids, then how are the companies going to recoup the investment?

    Also the G must realise, it is not only hybrids that are saving the environment. We have some clean diesel cars like the BMW Advanced Diesel line with the 520, 320d that produce class leading emissions, and some of these conti cars have really low emissions and fuel consumption. Just ask any recent Mercedes Benz, BMW, Audi or Volkswagen owners… They’ll tell you on a light-normal foot, the fuel consumption is really low. More so when cruising thanks to all the tech. Auto Start Stop, tall OD gears, many gears, DSG transmissions, turbocharged engines, Brake Energy Regen, aerodynamic bodies, transmission decoupling etc. Yet, despite this, we still get charged fantastic road tax and import tax. Fun fact, a new BMW with a TwinPower Turbo N20 engine in the F30 3 series 328i, with the 8 speed automatic produces 147g/km. A Perodua Myvi 1.3 EZi (not even the 1.5 yet) with the 4 speed auto produces a whopping 151g/km, and mind you, the BMW has about nearly 3 times the power and 3 times more torque than the Perodua.

    Shocked? Go see the UK database. Chilling numbers isn’t it?

    It’s high time we get a new way for tax calculation to be done. Road tax should be based on your emissions, not your engine cc. Next, import duty should also be based on emissions. If the car you buy produces more CO2, you pay more, else you pay less.

    UK database link:
    http://carfueldata.dft.gov.uk/search-new-or-used-cars.aspx

    Well-loved. Like or Dislike: Thumb up 93 Thumb down 10
    • Krasher on Aug 02, 2014 at 12:26 am

      Are you suggesting a fresh grad who can only afford myvi should pay more road tax than a senior manager that owns a Beemer?

      Like or Dislike: Thumb up 16 Thumb down 13
      • sudonano (Member) on Aug 02, 2014 at 9:15 am

        Did I say that?

        Well no, what I mean is, if it was fair that import duties were based on the relative CO2 produced, then the young execs will not have to pay so much for the 3 series or equivalent, and fresh grads won’t be stuck with a Myvi cause more economical and eco friendly options like a Polo TSI or Fiesta 1.0 EcoBoost would attract a lower tax bracket, dropping the price significantly, to hopefully something bit more than a Myvi today.

        Like or Dislike: Thumb up 40 Thumb down 1
      • Sam Loo Sucks on Aug 04, 2014 at 11:25 am

        Who ask u to buy that overpriced junk myvi in the 1st place? You want to buy that guzzling n smoky junk u deserve to pay more road tax. Same like yamaha bikes that produce smoke like a lorry/bus.

        There are many options out there in similar price range that are cleaner n more fuel efficient than dino age myvi. Just open up your eyes and brain for once.

        Like or Dislike: Thumb up 4 Thumb down 0
    • lonelyobserve (Member) on Aug 02, 2014 at 12:49 am

      Good comment. I bet some of people gave thumbs down are just cannot face the truth on current automobile situation in this country.

      Besides hybrid, clean diesel vehicles, IMO are having low CO2 emission and fuel consumption. The problem is the fuel standard in this country still in Euro 2 (with over 300ppm of sulphur) and this makes almost impossible for new genereation of clean diesel engine-powered vehicles to reach here.

      Like or Dislike: Thumb up 20 Thumb down 3
      • sudonano (Member) on Aug 02, 2014 at 9:19 am

        That too, they really need to bring in decent diesel, not Euro 2 rubbish. Imagine if they brought in Euro 4 or 5 diesel, we could potentially get things like a Golf TDI or Polo TDI or even the Focus TDCi/Fiesta TDCi which are superbly efficient… In fact the Polo 1.6TDI equipped with a DSG only produces 112g/km and has 230Nm of torque!

        Like or Dislike: Thumb up 21 Thumb down 0
        • lonelyobserve (Member) on Aug 02, 2014 at 12:35 pm

          If these green and clean vehicles come in to this country with the availability of Euro 4 or 5 (preferably) fuel, national cars will take the heavy beating and surely will upset father of national car.

          P.S. This is totally IMO, if those green diesel vehicles are available, please introduce back old school manual transmission as standard equipment while automatic/DSG to be optional equipment. People are scared of DSG/DCT failure and it hurts very deep, although this issue happened to dry clutch DSG/DCT. At least with manual transmission available, people still can buy VW and Ford cars without concerning on transmission issue.

          Like or Dislike: Thumb up 10 Thumb down 1
        • jacksonljs on Aug 02, 2014 at 10:41 pm

          Seconded that, even for power hungry drivers still can go for diesel (eg. VW Golf GTD and recently launched Ford Focus ST Diesel) with amazingly low FC (both cars sips only 4.2 – 4.4 litres, in manual transmission form)

          Like or Dislike: Thumb up 2 Thumb down 0
          • jacksonljs on Aug 02, 2014 at 10:41 pm

            Edited:

            Seconded that, even for power hungry drivers still can go for diesel (eg. VW Golf GTD and recently launched Ford Focus ST Diesel) with amazingly low FC (both cars sips only 4.2 – 4.4 litres per 100 km, in manual transmission form)

            Like or Dislike: Thumb up 0 Thumb down 0
        • i recommend to stick to the jap brand as vw has some issues with their reliability

          Like or Dislike: Thumb up 1 Thumb down 1
    • Obviously (Member) on Aug 02, 2014 at 3:30 am

      Agreed to your points. They seem to be changing their policies all willy-nilly or they’re just too undecided about what they should be doing.

      The secrecy and mysteriousness with which the gov went about formulating the NAP 2014 is still fresh in mind. They gave many automakers a hard time by being so darn silent about their incentive packages that the automakers don’t know where and how to divert their resources and what they should invest in. Whether by luck or by wit, Honda is the only company that manages to cash and enjoy the full benefits of the incentives straight off the bat. And in the end, the policies themselves were vague because they are “customized” for CKD EEVs.

      This fog of secrecy has got to go. Transparency is paramount for efficient future development of the automotive industry.

      Like or Dislike: Thumb up 14 Thumb down 0
    • Low Budget on Aug 03, 2014 at 9:51 am

      Gamble on Gomen policies? Thats right! The Gomen is playing coin tossing game, flip-flop-flip-flop…

      Like or Dislike: Thumb up 0 Thumb down 0
  • iamcs on Aug 02, 2014 at 12:05 am

    “The Toyota Prius c – used to be RM197k, is now RM153k”, isn’t it RM97K?

    Like or Dislike: Thumb up 6 Thumb down 1
    • Toyota Top salesman Puchong on Aug 04, 2014 at 6:19 pm

      That’s what we actually hope to sell you. Prius C for 197k. Too bad you guys still got some brain. Otherwise I can get 50 months bonus.

      Like or Dislike: Thumb up 0 Thumb down 0
  • submarine on Aug 02, 2014 at 12:53 am

    If the G really has long term vision and really puts the rakyat first, just stop the protectionism and the corruption. Then slowly but surely things will fall into place sustainably.

    Like or Dislike: Thumb up 9 Thumb down 0
  • Anti-Fuel-Price on Aug 02, 2014 at 12:56 am

    After reading this blog, if I were servant of the PM, I will smash my head to the wall!!! Such simple mathematical and theory which can be explain in a A4 paper written by Paul Tan, can’t even sort it out by the Government. Yet so called “after studies”, “need to setup committee”, “whatever shit they call it”…..
    Now if Paul Tan were to “predict” it right for Budget 2014, tax exemptions, then is a GOOD move & NAP should be on the right track, BUT for car manufactures they will be thinking “kejap tax, kejap tak mau tax”, “jadi sekarang kerajaan nak menghala mana????”
    To the Government: PLEASE think of environment & tax on g/km INSTEAD of ol skol pattern cc form!!!!

    Like or Dislike: Thumb up 32 Thumb down 1
    • lonelyobserve (Member) on Aug 02, 2014 at 12:38 pm

      Current government on automobile is to protect national cars at all cost. So these so called NAP and tax revenues, etc etc elaborations are just to confusing the public.

      Like or Dislike: Thumb up 5 Thumb down 1
  • eric_ocy (Member) on Aug 02, 2014 at 1:32 am

    I think there’s a typo on “The Toyota Prius c – used to be RM197k, is now RM153k”, Prius c should be RM97k instead of RM197k previously.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Duit masuk pocket again…typical G.

    Like or Dislike: Thumb up 9 Thumb down 2
  • Hey Paul Tan
    “The Toyota Prius c – used to be RM197k, is now RM153k.”

    There’s an typo error on the pricing.

    Like or Dislike: Thumb up 2 Thumb down 0
  • RejimKejamGanas on Aug 02, 2014 at 3:58 am

    The govt can’t make their mind on what they want. They want to be the EEV hub to remain competitive and keep the duties high at the same time. Investors are not going invest in short term incentives, what is the point of setting up here if they are not welcome in the domestic market? Who would want to invest when the EEV incentives only last till end of next year? Is Proton going to be ready with EEV models by then?

    With more auto investments going to Thailand and Indonesia, we are going to miss the boat again. Nothing to be surprised of when our govt scrap their EEV plan late next year.

    Like or Dislike: Thumb up 9 Thumb down 0
    • RejimKejamGanas on Aug 03, 2014 at 7:15 pm

      Looks like I am not far off:
      “With the arrival of the AEC, the EIU said Thailand will extend its dominance as the “Detroit of the East”, as more manufacturers adopt the so-called “Thailand+1” strategy. The “Thailand+1” approach entails carmakers using Thailand as their manufacturing hub, with secondary plants in Cambodia, Laos, Vietnam or Myanmar — bypassing Malaysia in the process.”
      Source: http://www.themalaymailonline.com/malaysia/article/crutches-for-proton-perodua-will-hobble-malaysia-when-asean-opens-up-eiu-pr

      Like or Dislike: Thumb up 0 Thumb down 0
  • 4G63T DSM on Aug 02, 2014 at 4:07 am

    Good write….but a rather flawed conclusion. If these hybrids came in at full duties, they wouldn’t have sold this many in the first place.

    But I reflect the sentiments of most readers here. He flip flop nature of our NAP is doing our automotive players any favours. Even right now we still have no idea what the EEV nonsense is about.

    Like or Dislike: Thumb up 11 Thumb down 0
  • Old man on Aug 02, 2014 at 7:48 am

    Save? Should use the word “con less”.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Isuzuki on Aug 02, 2014 at 8:40 am

    3 types of taxes… Will there be a new GST brother?

    Like or Dislike: Thumb up 3 Thumb down 0
  • fuelburner on Aug 02, 2014 at 9:13 am

    if the govt really serious on reducing the fuel
    consumption and cleaner environment, pls bring in euro 5 diesel to malaysia. diesel car are cheaper than hybrid, drink lesser fuel, give more power and more robust.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Justice For Car Buyers on Aug 02, 2014 at 9:37 am

    Open letter to Paul Tan, MITI, MAA, JPJ, Bank Negara, Consumer associations, all rakyat in general.

    Suggestions to protect the car buyers’ right and revisions for car excise duty policy.

    For far too long, the car buyers in Malaysia has been taken for granted, short-changed and felt cheated by the ridiculously high car taxes and the laid-back attitude by most of the car makers. Government, especially through MITI, Finance ministry and Bank Negara should put stop to this nonsense and here’s how to do it:

    1. Impose minimum 10-Years Car Warranty with unlimited mileage and no question asked policy.

    2. Impose minimum 10-Years free car service (inclusive of parts and labour charges with unlimited mileage and no question asked policy)

    3. Impose minimum car safety features namely: 6 SRS airbags (dual front, side curtains both sides), ABS with EBD, Traction Control, ISOFIX and 5 Star safety ratings ASEAN NCAP.

    Shall any features missing (point 1 to 3), the car deemed unfit and illegal for sale until further improvements made.

    4. Revise car excise duty according to the car’s fuel efficiency and CO2 (carbon dioxide) level for cars below 1,800cc. Use the current excise duty rate 75% as the cut-off point. Example:

    10km/Liter and below = Penalty of extra 50% car excise duty (Eg. 50+75 = 125% excise duty)

    11-16km/Liter = Discount of 10 % car excise duty (Eg. 75-10 = 65% excise duty)

    16-20km/Liter = Discount of 15 % car excise duty (Eg. 75-15 = 50% excise duty)

    20km/Liter and above = Discount of 50% car excise duty (Eg. 75-50 = 25% excise duty)

    On top of that above rate, the CO2 level will also carry extra discounts or penalties. Example:

    100 grammes CO2/100km travelled or below = Discount of 20% car excise duty (on top of fuel efficiency rate)

    101-150 grammes CO2/100km travelled = Discount of 10% car excise duty (on top of fuel efficiency rate)

    150-200 grammes CO2/100km travelled = Penalty of extra 30% car excise duty (on top of fuel efficiency rate)

    200 grammes Co2/100km travelled and above = Penalty of extra 50% car excise duty (on top of fuel efficiency rate)

    5. A different set of car excise for fully electric car versus hybrid car. As hybrid cars still emitting CO2 and consuming petrol, its excise duty should follow the point No.4 as per normal engine car. However, the excise duty rate for fully electric cars should be based on the battery mileage range per single charge (but still using 75% rate as cut-off point). Example:

    0-100km mileage range = Discount of 30% car excise duty (eg. 75-20 = 50% excise duty)

    100-200km mileage range = Discount of 40% car excise duty (eg. 75-40 = 35% excise duty)

    200-500km = Discount of 50% car excise duty (eg. 75-50 = 25% excise duty)

    500km and above = Zero car excise duty

    (The reasons behind it is that as battery technology advances over time, the electric car with the most mileage should be rewarded with more tax discounts)

    6. Standardised, flat rate for car loan interest charges regardless the car is local or foreign brands. No more discrimination.

    7. Car loan interest charges only applied for ex-factory zero duty car price while the excise duty amount payable rendered interest-free in order to avoid being ‘double-taxed’ by banks and thus reducing overall car financing cost to car buyers. Currently banks are profiting such easy money on car loans being factored twice which is morally wrong but totally legal.

    The direct impacts and benefits from the above suggestions if implemented:

    a) Car makers will promote more fuel efficient, cleaner engine, better safety specs cars to car buyers at much more level playing field. It is also in line with the EEV policy that promotes such vehicles. Ultimately, cars with zero emission and best mileage rightfully should enjoy more discounts or zero excise duty rate.

    b) At least 10 years of worry free for car buyers in terms of car warranty claims and servicing. Car makers will be forced to produce better quality cars to reduce any cost of warranty claims.

    c) Banks can no longer profiting easy money on ‘double taxed’ car loans. Which means more savings for car buyers and help reduce the household debts level. It is possible also to use that extra disposable income for buying a house at much early stage of life and lead to earlier house ownership as well.

    d) As more and more cleaner and fuel efficient cars being promoted at more competitive prices, the government can slowly reduce fuel subsidy costs and move closer to introduce open market price for petrol. The petrol price itself eventually become the control mechanism (pay as you use basis) and buying fuel efficient cars can only become the most logical thing to do!

    e) Best of all, government still continue to collect car excise duties but with much fairer and more progressive tax policy. It is only fair to car buyers for paying car taxes at such level to get more value added cars. It is simply a win-win situation to all of us.

    Conclusion:

    Government should protect the rights of car buyers more than just listening to the car industry players that have been profiting such an obscene amount of money from the car buyers. Such nonsense must end once and for all.

    Yours truly,
    Justice For Car Buyers

    Like or Dislike: Thumb up 45 Thumb down 1
    • spock1976 on Aug 02, 2014 at 10:49 pm

      What does this have to do with Bank Negara?

      Like or Dislike: Thumb up 0 Thumb down 6
      • RejimKejamGanas on Aug 03, 2014 at 7:18 pm

        Read again about references to car loans in the comment.

        Like or Dislike: Thumb up 2 Thumb down 0
    • Realy hope government can saw your words.

      And stop importing Korean cars, they lied about their emission !

      Like or Dislike: Thumb up 0 Thumb down 0
  • Limahpek on Aug 02, 2014 at 12:15 pm

    NAP EEV vehicle policy must be written by Honda Malaysia executive.. Who owns Honda and proton in Malaysia? Have you not notice Honda making strong in road lately with plenty and I’m not surprise if they decide to merge Honda with Proton later years, the same owner also own Mercedes franchise here.. Businessman at work with politicians.. Who you closed to matters in Malaysia business.. Rakyat will be suckers in the end

    Like or Dislike: Thumb up 7 Thumb down 1
    • old dog on Aug 03, 2014 at 9:42 am

      Merc is by C&C, Hap Seng Star…Ah Mohk not much…we probably can say Merc is the less political related..so go buy Merc :)

      Protong, Honda, Kia, Chrysler, Peugeot, all sama sama…

      Like or Dislike: Thumb up 0 Thumb down 0
      • kl fella on Aug 04, 2014 at 9:17 am

        what smoke are you smoking? merc models are being CKD by you-know-who in which you-know-who’s state?

        Like or Dislike: Thumb up 1 Thumb down 0
        • Toyota Top salesman Puchong on Aug 04, 2014 at 6:34 pm

          I don’t know who!
          All I know is toyota is better than lousy Merc which has no class at all. Think about how grand you will feel inside a brand new Camry 2.0 GX. Merc after 6 months will surely kwai tai at the road side and you will melt n rot under the sun waiting for the tow truck to come. No class at all!!!

          Like or Dislike: Thumb up 1 Thumb down 0
  • ruffstuff on Aug 02, 2014 at 2:36 pm

    tiap tiap tahun jerebu, apa guna low emission?

    Like or Dislike: Thumb up 5 Thumb down 1
    • alldisc on Aug 03, 2014 at 3:18 am

      Jerebu @ soot, and NOx are 2 different things and can be just as hazardous.

      Proton hybrid/reev should be coming soon; hence the beginning of market protection. Can see the game now?

      Like or Dislike: Thumb up 2 Thumb down 0
  • mamatwhyla on Aug 02, 2014 at 4:40 pm

    Good saving to car owners in m’sia previously. But protong need $ to fund their non-profit hobbies, so G have to find $ by abolish the duty exemption. TQVM prootong.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Henry on Aug 02, 2014 at 5:09 pm

    If this is the case then the Gomen should continue to help car buyers save more by continuing with the duty exemption. Boleh kah?

    Like or Dislike: Thumb up 0 Thumb down 1
  • iluvproton on Aug 02, 2014 at 8:55 pm

    despite this, why the government didn’t announce how much import duties they collected 2013?

    Like or Dislike: Thumb up 0 Thumb down 0
  • car lover on Aug 02, 2014 at 9:27 pm

    RM153k for prius c, i might consider Camry
    RM200 for Prius………. :-(

    Like or Dislike: Thumb up 1 Thumb down 2
    • Sam Loo (ori) on Aug 03, 2014 at 11:30 am

      Consider a used Sonata instead.

      15 month old below unit for around RM50k

      Like or Dislike: Thumb up 5 Thumb down 2
  • Y gov dun subsidies the 97 petrol??since its same price with 95..does it mk sense??aren’t 97 a better petrol???even if 10cents more… I think ppl will choose 97 instead of 95..

    Like or Dislike: Thumb up 1 Thumb down 2
    • Bataman on Aug 04, 2014 at 1:38 pm

      Simple…because the ‘Harga Sebenar’ for RON 95 is really RM 2.10….you all kena tipu…there is really no subsidy….

      Like or Dislike: Thumb up 1 Thumb down 0
  • Sam Loo (ori) on Aug 03, 2014 at 10:07 am

    As long as its not a kimchi it will have RV

    Like or Dislike: Thumb up 4 Thumb down 5
  • ionlaw on Aug 03, 2014 at 10:43 am

    This is really twisted mentality… you don’t save a penny when you found that the car you bought is now overpriced.

    Like or Dislike: Thumb up 2 Thumb down 1
  • In car market,We give all money to government, but government give nothing to us. The next step is reduce petrol subsidy, gst, increase int rate, and many many more, try to enjoy it if you cannot change anything, like which people say before…………….

    Like or Dislike: Thumb up 2 Thumb down 0
  • why G don’t really encourage people to save environment? on the other side, why MM2H n REP people enjoy the privillage to buy duty exempted car?

    Like or Dislike: Thumb up 1 Thumb down 0
    • APKing on Aug 04, 2014 at 8:30 pm

      Easy, the G treat you guys like a bunch of cockroaches. Foreigners get priority.

      Like or Dislike: Thumb up 0 Thumb down 0
  • aji wan on Aug 03, 2014 at 7:00 pm

    more than 9.8 billion can be saved without imposed all the tax if government know how to manage expenditure and seriously get rid all the corruption

    Like or Dislike: Thumb up 2 Thumb down 0
  • Car_fan on Aug 04, 2014 at 7:47 am

    Paul Tan, let’s count how much the millionaires and billionaires in Malaysia would have saved buying the Mercedes S400 hybrid by end if 2015, ok?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Car_fan on Aug 04, 2014 at 7:48 am

    Paul Tan, let’s count how much the millionaires and billionaires in Malaysia would have saved buying the Mercedes S400 hybrid by end of 2015, ok?

    Like or Dislike: Thumb up 1 Thumb down 1
  • joyrider on Aug 04, 2014 at 11:36 am

    The duty loss of approx. RM480 Million is misleading in this article.

    IF hybrid incentives were not granted, the buyer of Prius C and Prius would most likely to have purchased a similarly priced vehicle, i.e. <RM100k (Probably Hi-Spec B-Seg Sedan) and RM150~RM170k (D-Seg Sedan).

    It is unlikely that these 8,390 owner of Prius/Prius C would have buy these vehicles at the price level with full excise duty because they wanted a hybrid Toyota vehicles.

    In that sense the alternative(B-Seg + D-Seg) vehicles excise duty tax would have been lost (not collected by the Government). However, considering that the popular B-Seg /D-Seg vehicles are majority being CKD, the taxation is not the full 75~90% (Depending on E/G Capacity) as imposed on CBU. The tax loss should be significantly less than the simulated figures of RM480M.

    Like or Dislike: Thumb up 0 Thumb down 1
  • Bataman on Aug 04, 2014 at 11:52 am

    Got which sohai wanna pay RM160k for a prius now? You pay RM80k extra compare to a similar B-segment car(ex: VIOS). RM80k x 3% loan for 7 years=rm96,800.

    Essentially you are paying almost RM100K of fuel uphand…i would rather take that RM100k and invest in property and buy a petrol engine car!!!!

    Like or Dislike: Thumb up 2 Thumb down 2
    • Toyota Top salesman Puchong on Aug 04, 2014 at 8:34 pm

      Shooo!!…don’t kacau my customers. I still want my 24 months bonus end of the year.

      Prius C is very prestigious. At 153k is still a bargain. RM is small nowadays you know? I go hawker center eat with my GF also easily spend RM80 for 2 of us.

      Like or Dislike: Thumb up 0 Thumb down 2
  • Samlok on Nov 07, 2014 at 7:53 am

    Worthy buy! It is a TOYOTA

    Like or Dislike: Thumb up 0 Thumb down 0
 

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