The authorities have made a U-turn on the increase in excise duty for budget MPVs. The excise duty rate for MPVs, SUVs and pick-ups below 1,500cc was increased from 60% to 65% in the “Excise Duties Order 2017”, but the rate will now go back to 60% with immediate effect.
In a press statement yesterday, the Royal Malaysian Customs Department said the decision to reverse the excise duty hike was made after taking into account the high demand for such vehicles.
“The new excise duty rates have impacted CBU imported vehicles compared to CKD locally assembled ones. Taking into account the fact that consumer demand for these CBU imports is still high, the government has agreed to readjust the excise duty rate for vehicles under tariff codes 8703.22 9010 and 8703.22 9090 to 60% effective immediately,” said Customs director-general Datuk Indera Subromaniam Tholasy.
“Retail prices must be maintained and vehicle manufacturers cannot raise the prices based on the increase in excise duty rate which have been gazetted through the Excise Duty Order 2017 on March 31,” he added.
With this announcement, we’re expecting prices of 1.5L MPVs from UMW Toyota Motor (UMWT) – namely the Toyota Sienta, Avanza and Rush – to return to pre-revision levels. UMWT was the first to respond to the Customs move, and raised prices by up to RM6,000. The Perodua Alza, Proton Ertiga and Honda BR-V would have also been affected, but the three carmakers were silent on the matter, so it’s status quo.
UPDATE: Prices for the three Toyota models have reverted to original levels, as shown on its website.
The original increase to 65% came about because of the streamlining of product category codes in the system, and the merger of tariff codes in the “Harmonised Tariff Nomenclature” gave the opportunity to revise rates. Customs points out that the passenger car rate is 75%, excise duty for SUVs below 1,500 cc was revised from 75% to 65%, and that the 60% to 65% jump was not to increase revenue, but to find a mid-point between 60% and 75%.
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Election is coming, the govenment cannot be seen as insensitive to the middle income earners.
Already Malaysians are paying the highest car prices in the world. To make matters worse, due to corruption, our GDP per capita is one of the lowest in the world. What this means is our pay packet is one of the lowest in the world.
Compare this to Singapore. Singapore GDP per capita is of one the highest in the world.
Average gomen servant in Singapore earns SGD8000 (RMRM26,000) per month.
Average Putrajaya gomen servant earns RM1200.
Compare RM1200 vs RM26,000
Toyota CHR Hybrid in Singapore is SGD65k. COE is SGD35k. Total SGD100k for a CHR Hybrid. (10 yr COE included)
When CHR is launched in Malaysia, it will be RM150k. How earning RM1200 can afford such car?
my sister works in putrajaya. not on contract, won’t become permanent either. she is paid rm100/day. so during any public holiday or take mc, she wont get paid. other benefit.. dont really have any
What is this…? Up-down drama…? Why passenger car sedan at 75% set higher than others category…? 30 millions msian don’t want this 60% up-down drama –> we want to see 30% Car Price Reduction promised BN. Already Q2’2017 & next coming election is near, pls miti.mai.maa when 30% car price reduction can happen …?
So high excise duty 60%…
TAKDE ISU LAIN NAK SPIN LETTEW.
OH WAIT…DUIT RAYA AKAN SAMPAI TAK LAMA LAGI
RM100/day is much better then kerja KFC & McD literally without any benefit either. If come to work full month got RM2000 maa.. Do any private com want to give your sister that amount of salary for non full time job?
Bila harga turun, kenapa tak puji kerajaan? Toyota dulu naik sekarang ni dah turun.
Proton CEO boleh turun kah?
Wow Toyota FIRST to response by increasing their prices! You can see UMW greediness being fast and efficient print out new price! They trying to sell old stocks with the new price! Greedy above evil!
How are you very confidence that average gomen servant in Singapore earning SGD8000 per month? You ok or not?
Yep….and you can bet it ll be eventually increase after election if the same govt in power
Bila naik dipersalahkan kerajaan. Bila turun kenapa tak puji kerajaan? Ada yang dah turun. Kangkung dulu naik sekarang ni dah turun.
Where the “turun”??? Is back to normal rate ! And highest rate among ASEAN
Ohsem gomen!!
Lepas nie turap tar jalan baru & bersih longkang tersumbat…
Highest rate among ASEAN.. hahahah
Do you only eat kangkung for your entire life? nasi tak payah makan ke?
ayam tak payah makan ke?
Nasi dan ayam ada turun harga tak?
Thank you for listening to our grouses. I’ll give credit to the government when credit is due. You did right here.
Kudos to everybody here as well for voicing up.
Good to have a government that listen and react to constructive criticism.
Our menteri or gov keep on making u turn decision because people like u encourage them
Does pipu still need them to represent dan make decisions for Rakyat?
When what they decide is just making Rakyat life more difficult.
We’re all living and working in an increasingly fast-paced and ever-changing business world.
my CEO always complained They keep changing, today it’s this, tomorrow’s it’s that. They haven’t decided what They want.
Toyota UMW now malu, very fast increase price but now have to drop back…if they drop back
Toyota umw clever, increase +RM6,000 and then reduce back RM5,500 only :p
haha, that shows how limited knowledge you are. The increase is the Excise Duty amount, which will be paid back 100% directly to Govt.
Toyota made the announcement means they have nothing to hide in their pricing. It is for all to know.
Please don’t simply bash without any concrete evidence. Unless you are one of those keyboard warriors of some company, then please pay up before commenting on others.
SO still has 1k increase, how?
No it’s not about being malu. Their fast action have enabled us rakyat of the silently made increase and the impact on our daily livelihood. This is why the government have revised back the rate to original. Do you think the government would have bothered about rakyat if people were not aware of the increase?
Some cool story:
1. UMW sees BRV success, thought of wise plan.
2. UMW ask gov to +5% on SUV to slow down BRV sales.
3. thinking that booked customer will continue the Toyota loyalty, UMW first one to increase price matching duty.
4. immediately all UMW bookings got canceled including non-SUV.
5. UMW begged gov to -5%.
6. lol
I feel you seriously don’t know much about the automotive industry in Malaysia.
Maybe you can give all of us a summary like your posting above on why on earth some malaysian company borrow so much last year, then this year ask another round of financing?
Also when is the company plan to pay back?
Another cool story for you:
1. borrow 1.5b soft loan from gov
2. 80% gone to pocket, 20% gone to marketing.
3. 3 new launches, 1 rebadge
4. 6 months all cars sales not even half of 2 months BRV sales
5. board have cool idea – let sell ourselves (but hidden clause still retain control & crony suppliers)
6. bidding starts
7. bidding ends after all 3rd party read about the hidden clause. but still mention bidding still on going
8. truth=no more bidders.
9. last resort: ask soft loan part 2.
10. lol
Good one bro. Well said ;)
UMW = PNB = Govt. Its the government doing business la oi. PNB is its investment arm.
Not malu but efficient. Its not wrong who makes the move to announce 1st.
Only some company suka pinjam duit ones will be extremely silent because takut like hell all sales gone. Only their keyboard warriors will go around sepak another car companies move.
Hutang duit orang, please don’t give negative comment so much ya.
Gov silently increase tax, price increase, UMW brave enough to announce and this scare Gov. Now cheap P1, P2 and BRV don’t have to increase price thanks to UMW
Real flip flop. No focus in life. Now because of elections, they got scared with the angry public and how the public is mad.
You mean Cabinet cannot think about the rakyat? Those who buy Alza are from the lower income group. All susah payah. Some even work 2 jobs a day. And yet our beloved gomen want to increase 5% excise??
And Ertiga got ZERO sales. 1 year launched, many people have never seen a single Ertiga on the road. Now with the increase in price, who will buy Ertiga? And how is Proton going to pay the few hundred million ringgit royalty payment to Suzuki Japan for the rights to rebadge Ertiga?
Now flip flop. But don’t worry, after election it will go up. Gomen loves to screw the poor people for more money
You don’t see ertiga on the road does not mean it has Zero Sales.
do you mean people buy but park it at home and don’t use?
Ertiga not ZERO sales. I see ONE one the road.
Ertiga sudah launch ke? Sudah lama tunggu ni ;-)
You mampu nak beli ke
hahahahahhahahahaha… our gov mmg pandai buat hal cam ini… why the hell they increase the excise duty at first place???
mmg bodoh mia government
Because they are bunch of hooligans. Do things without thinking further ahead. They initiate plans without thinking about the consequences. That is why our country is in a mess. Best example, our education system.
dont even start on education. minister tukar, syllabus tukar, aiyoo cikgu semua pening, workload increase, students become guinea pigs. those ppl at ministries dont know what they are doing
So many flip flop policies yet Civil service bloated
why looking at mid point? try look at low point
Really concerned abt the future of this country bez incompetent pple r having powers to make country major economic decisions and bez of their incompetent part whole rakyat suffering.now they said bez of hi demand of budget mpv so reverse back so reflect already their incompetent part.if competent at first place should reduce more the 60% part or dismiss at first incompetent minister propose to hike.speechless im
UMWT is a total shark la. Fast to increase in slightest chance. At least PERODUA, HONDA and PROTON were cool to wait and see.
why shark leh? umwt raise cause government requested… plus the extra 5% not going to umwt pocket also
Others no raise lar. Government requested or implemented. Just that UMWT is THAT quick to lay it to the customers. There are 3 other makes that knows well and hold on to such announcement until official execution.
Proton terbaik
Act so fast, u know i know la.. whose the people behind the UMW.. same like whose control our patrol price.. is was same theory!.
In a press statement yesterday, the Royal Malaysian Customs Department said the decision to reverse the excise duty hike was made after taking into account the high demand for such vehicles. Shouldn’t the Authorities do a thorough stakeholders engagement before proceeding? Oh well, Malaysia and its famous flip flop U-turns.
As much as I welcome the decision, it still made me wonder what is wrong with the government nowadays?
There were lots of u-turns, which I rarely heard of during the old days. How they come up with the initial decision in the first place?
As if like “let us do this” and after made it “oh we forgot about that. Let us revert back to previous”.
Kids making these kind of decisions, I can accept it. But officials, leaders?
This is stupidity at its finest.
What do you expect from a government that “burn up” money faster than they can make them. Surely they will squeeze the rakyat dry and use them as ATMs for their own interest.
No wonder Malaysia left way behine compare to Korea! … 40 years ago Malaysia in fornt of Korea in all …
It’s just show how greedy UMW Toyota is. The price increase not just for the tax revision but also take the opportunity to gain more profit. The price increase should be less than 5 % from OTR price as it is an increase of 5 % tax, not OTR price. How can it be a 6K hike and more than 5% OTR price. See how greedy UMW is.
“Customs points out that the passenger car rate is 75%, excise duty for SUVs below 1,500 cc was revised from 75% to 65%, and that the 60% to 65% jump was not to increase revenue, but to find a mid-point between 60% and 75%.”
Rush is SUV in original category, right? Why the price is increased by UMW?
Rush is MPV. A 7 seater with no 4WD
Noted and thanks. Which models in msia that are belong to SUV below 1500cc?
Reverse gear ah? Hope Toyota, Honda and Perodua didn’t print too much brochure on the increased price. The issue was it was an across the board increase which affects Perodua Alza and Ertiga. They wanted the increase to only effect Honda BRZ.
Don’t worry, they will think of another way to target certain car makes only.
Do it means the new 1.5 liter Turbo Honda CR-V will benefit from this revised Excise Duty?
It may, but at 150k don’t expect the difference to make CRV price 99k.
Theoretically the price hike should be less than 5% OTR price as the tax increase is just 5% which is lower than the 5% OTR price. But UMW has increase more than 5% OTR which is just showing us how wretched and greedy UMW is, to use this opportunity to gain more profit.
Their plan to use this 5% to fund the RM1.8b soft loan to Protong got pecah lubang, now have to revert the plan and figure a new one.
For those already paid, good luck waiting for tax refund ya.
In this era of internet and social media, everybody knows about the tax increase almost immediately. This is against the officials’ hope of people not knowing about the increase until they are buying. Now they have to swallow back what they had spit out earlier.
Mana tak nyer…mami kat Penang pon panas dikk oi.
the excise duty was quickly reversed because government read all the comments in paultan bashing them.
so they scared already. Paultan power yo!
I give you 1 like :)
Perghh Friz the MAN. celek bro..
Dun syiok sendiri
Bila dah turunkan balik kenapa tak puji kerajaan..?
udah-udah le tu kancil hybrid oiiii
kancil hybrid malaysia aman oiiii
Pity this kancil hybrid guy, he eats kangkung only everyday for years to save money to upgrade to 2nd hand kelisa… but still cannot achieve his dream until now. Maybe another 10 more years. wakakaka
Syabas!!!
PT gempak, Rakyat lepak.
Nothing to do ah? Go fix the potholes on roads lah!
Wake up people.. this is just an election ploy. GE is coming so they decide to increase tax on cars bought by lower income earners knowing fully well they will complain, so that they will reduce it back and use that as an election campaign point.. “After all we listened to you when you complained about the 5% tax increase, we serve the rakyat”…
stupid…menyusahkan orang…buat keputusan tak fikir masak2
for why they care? all they care are their own pocket, plus they never gone masak..
No, the fact is, the introduction of 65% tax was scrapped following by a heavy bombardment from the public. While the truth is that, budget MPV are most sought after and they deemed a chance to take advantage of it.
Flip flop style of the Malaysia Govt, at its finest.
I pity the journalists attending to the news. Wasted their time for nothing….
companies will hike the price anyway
Should have keep their mouth shut before doing unnecessary announcements on this matter. Though there is no change to the price with “immediate” effect, but it’s a “blow” to the people. Well done to the Royal Malaysian customs department. Syabas
Dah habis akai la ni. Pakai idea lapuk, kasi naik… Lepas tu kasi turun. Prihatin la konon. Cheap sale punya idea.
Those considering buying this category of SUV best buy before year end. Election sure coming, perhaps by September or October (that’s why the u-turn on this increase). After the current ruling party wins GE14, you can bet 110% this excise duty will be re-implemented.
If i say our Gov & its agencies are Very Good in U-turn. I wonder how many will agree.
Come to think of it, the excise duty is paid to Govt right? If so, when Govt increase it by 5% and then UMW immediately increase the price by about 5%, isn’t it a good thing that UMW is trying to show to the Govt that every increase will be passed on to the rakyat? So that Govt will think carefully about increasing any price.
kakakaka…damn funny toyota…too eager to rise price
That is how unstable the decision that our leader have now. So as the pricing of goods. If these type of situation continue we can’t blame others for hindering outsider to do business with us. Business is likely to happen when the costs and prices is stable. So what about our fuel price now?
Super fast because they become the loser now.