Import duties

More from PEKEMA – the Malay Vehicle Importers and Traders Association of Malaysia has urged the government to consider abolishing the RM10,000 levy imposed on holders of approved permits (AP), according to a Bernama report.

PEKEMA president Datuk Zainuddin Abdul Rahman said removing the levy and reducing excise duties will allow the people to buy imported cars at cheaper rates. “If the levy is abolished, the price of imported cars will go down and at the same time, PEKEMA will bring in high quality cars,” he told the national news agency, adding that he hoped the soon-to-be-tabled Budget 2015 would decide in PEKEMA’s favour.

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Although local financial institutions provide flexible car loan repayment periods of up to nine years to allow the people to easily own cars, it was still a hefty debt for the common household in the long run, said Zainuddin. “Based on the Financial Stability and Payment Systems Report 2013 released by Bank Negara Malaysia, car loans contribute to 20% of the total household debt,” he said.

Meanwhile, National Consumer Complaints Centre (NCCC) board of trustees member Muhammad Sha’ani Abdullah said the board anticipated a drop in vehicle prices once the Goods and Services Tax (GST) is enforced in April next year.

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“Currently the sales and services tax (SST) is 10%, but the GST will only be 6%,” Bernama quoted him as saying, adding that the government does not determine vehicle prices, which are still dictated by the automotive manufacturers.

“Through the GST we do expect a shift in the price of vehicles, unless the government introduces other duties to maintain the prevailing rate,” he added. Since January 2010, Open AP holders have had to pay a RM10,000 levy for each Open AP they get.