Rahman-Brothers

The International Trade and Industry Ministry (MITI) has been urged to reassess the current Approved Permit (AP) fee structure applicable to car importers, in light of current economic conditions.

According to Kumpulan Rahman Brothers Sdn Bhd (KRB) executive chairman Datuk Abdul Rahman Ibrahim (second from right), the high AP fee is making it difficult for car importers to keep their businesses profitable. The devaluation of the ringgit was cited as one of the reasons behind the increased operating costs.

Speaking to the News Straits Times, the AP holder said “Syarikat Rahman Brothers Motor has paid RM48.24 million in AP fees since the policy was implemented. We also pay import tax, company tax and the latest Goods and Services Tax (GST).”

nap-2014-ap

“As a result, our ability to generate the capital to diversify our businesses has decreased. Therefore, we hope the ministry can consider waiving or at least reducing the payment until the country’s economy stabilises,” he continued.

However, Datuk Abdul Rahman Ibrahim did express his support for the continuation of the AP system. The AP system, Open and Franchise, was supposed to be discontinued by December 31, 2015 for the former and December 31, 2020 for the latter, under the National Automotive Policy (NAP) 2009. The arrival of NAP 2014 has now left those dates open ended.

The Malaysia Automotive Institute (MAI) has clearly said it is in favour of terminating the Open AP system, saying it does not contribute to the development of the automotive industry.

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