The ministry of international trade and industry (MITI) says it is looking at a reduction in vehicle excise duties as a possible means to bring car prices down. Such a move will mean less direct revenue for the government, but this will be offset by improved tax collection from an increased sales volume, according to deputy minister of international trade and industry Ong Kian Ming.
He said that on the whole, it would benefit consumers, industry players as well as the government, as The Star reports. “Of course, there is a cost-benefit involved here, in the sense that you have more tax reduction in the excise duty. The government may collect less per unit, but whatever revenue lost by the finance ministry can be regained by the increase in the sales volume because car prices would be lower,” he said.
“The original equipment manufacturers (OEMs) get to sell more cars, consumers get to benefit from lower car prices and the finance ministry gets to benefit as well, when it gets to collect more excise tax as a whole because of increased volumes. This is something we want to work towards for all car models,” he explained.
Ong said that industry players will be providing the government with their estimates on an expected increase in sales volume as a result of excise duty being reduced. He added that local parts suppliers and OEM vendors will also benefit from the move through an increase in completely-knocked-down (CKD) activities.
Industry observers and analysts offered different views on the proposed move. An industry observer said that it would help lower car prices and benefit local automakers more than those that imported vehicles, as this would help CKD programmes in the country.
An analyst had a different take on the matter, saying that an excise duty reduction will not have an impact on sales volumes or improve the government’s coffers, adding that even if it did, it might hardly be felt. “The prices of Perodua and Proton vehicles might not reduce that much from this, but it will be more favourable for Japanese brands,” he said.
What do you think of the plan to reduce automotive excise duties? Share your thoughts in the comments section, but do remember to keep it civil.
Lower tax for non proton perodua
Increase tax for perodua and proton
Sarcasm or stupidity?
Malaysia has the highest car prices in the world. And according to EPF’s own statistics, 78.3% of all its contributors only earn RM1500 and below.
It is time we see a reduction in car prices. The last Government promised us 30% reduction in car prices but 5 years we waited but got cheated instead. Car prices went higher and higher
Does Malaysia levy a 70-105% consumption tax on proton, Perodua or CKD-assembled cars?
Hope our car prices come down!
Where is the comment that Malaysia has the cheapest car prices in the world and cheapest petrol prices in the world?
The guy disappear now?
Lower duties across the board n let car distributors fight it out,without protecting 3 national cars(including Protiga)…then we can enjoy cars of our choice, without thinking of Perodua as our only choice.
Mull: think about (a fact, proposal, or request) deeply and at length.
They are the government. Why need to mull? Didn’t they promised cheaper car prices? If they seriously had wanted to do it, they would have done it! Another pie in the sky promise.
Yup. Like Nike, Just Do It! Why need to talk cocksingsong bollocks.
Mulling mulling..
https://paultan.org/2016/01/08/govt-mulling-age-limit-for-commercial-vehicle-drivers/
Nope. Perotiga doesnt allowed that
Tax the rich la those bimmer and merc. Lower price of local car. Put more safety feat in local car. Better improve public transport or make ehailling cheaper. Less car otr less jams.
Terima kasih gomen… Hidup PH !!!
The real game changing excise! Habisla initial “J”!
Proton & Perodua will never allow it, because it will hurt their pockets directly.
Even if they do, do you think Toyota, Honda etc will pass on the savings to the consumers? They will only pass on a little of the savings to entice buyers and they will keep the rest for themselves, increase volume & increase profit for them only.
All these is due to having no transparency in the tax & pricing calculations for car prices in Malaysia. And they can’t show these calculation because then the Rakyat will know exactly who have been overcharging and by how much.
Overcharging? What’s wrong with increase profit?
Everything was done to protect Proton. In 1985, a brand new Toyota Corolla was only RM20k in Malaysia. In 2019 the same Toyota Corolla Altis is RM139k
But In Japan, the same Toyota Corolla only gone up 50% in price YEN from 1985 to 2019.
Malaysia go up 700% from 1985 to 2019
Japan go up 50% from 1985 to 2019
Proton is no more local company. It is a China company. So we should not protect it anymore
Today said reduce, tomorrow sure u-turn.
Not only u turn …but pH has turned slightly rogue by bulldozing Protiga…an unwanted mega project that has become a thorn n eyesore.
This move will only benefit imported CBU cars, while CKD and local cars will have a tough time.
More money will outflow.
Then just remove all excise duties from local cars lor. I’m not complaining.
If you are really so concerned about our money out flow, then why don’t you also suggest the following instead?
1. Improve our education system so parents don’t need to spend Thier life savings sending kids overseas.
This should have been a move done eons ago. The analyst is right but it has to be done. The taxes imposed on cars are too much. Enough with protecting P1 and P2.
Much can be said but it is time for this nation to emulate the successful ones.
We need a man like Li Chunrong to guide MITI to greater heights.
Li Chunrong in 6 months identified that kroni suppliers and vendors were overcharging Proton big time and this resulted in Proton going bust
Local Proton CEOs could not identify this in 20 years.
The same applies to Government departments. We need more Li Chunrongs to give them direction and give these departments a good clean up. then you will see car prices going down
Finally. The BN machais who cannot agree just pay extra to the salesman to ensure BN supporters keep paying Najib price.
Mark my words! Some time from now, this plan will “U-Turn”! Plan foiled! Be prepared to be dissapointed by false hope my friends!
Ini kali lah!
GE still far away !
But CH by election very soon.
Oii! Reduce car price is najib promise, not PH lolz
PH too has promised to reduce car prices, noob.
What are you looking at? Rafizi already have plan for this. Just copy and deliver.
Wishful thinking. The patron saint of national auto project is still there.
You can tell the analyst to shove it.
Another bungle by the new govt. Rafizi already came up with the idea and studies to support it. Now, as govt, they want to study what more? Just lower the excise duties. Instead, they say about considering it. Expect even lower sales volumes in the coming months.
U can tell that to BN..its their promise to lower car prices in their 2013 manifesto
BN is not the government, PH is the government. If PH role is just to point fingers and not do what they preach, then better give back the government to BN and let them justify their favourite role of fingerpointing, because that’s all they do best.
You mean that certain cash is king. His favourite role of fingerpointing, and act ‘forgetful’ of certain events. Nothing to contribute as elected MP. Kudos to his voters… Tepokkk. Maluapobo55ku??
useless govt. all blame BN. gross incompetence chalked up as learning curve. this govt should count itself lucky if they can even survive to ge15.
MITI’s proposal are kinda 2 dimensional i.e price x vol. The Gov should look at transportation holistically. Lets throw in factors like Traffic Congestion, Energy Consumption, Mass Transport as alternative etc. Then make a decision. Basically think about how the country should look in 10 years. Like Tokyo? or like Jakarta?
Absolutely correct. Lower prices means more cars on the road, more congestions & more pollution. If this really should come in place, then the car scrapping policy should come in too..
nope, reducing excise duty, national car maker sales will go down (since they kena very little excise duty)
while non national car makers sales will up.
at the end it will contra back each others sales
hence total sales volume almost same (albeit maybe slight increase) but consumers can afford better car.
“The ministry of international trade and industry (MITI) says it is looking at a reduction in vehicle excise duties as a possible means to bring car prices down.”
Looking only… won’t do anything one lah. They will use the same RM 1 trillion debt excuse.
No price increase good enough liao. Want to talk about reducing price.
Why would they spend time looking to reducing car price when they are all busy with 3rd national car project? It’s all because of cameron highlands lah.
Finally, something to look forward to.
Hardly to remain in long run. Out of sudden will hit R gear (reverse).
Thailand’s domestic car sales volume surpassed 1 mil units last year. Malaysia is around 599k. With that kind of volume, investors are flogging to Thailand as the auto hub instead of us. Thailand’s political landscape used to be quite hostile to investors but the BOI changed that perception. We just lost Nissan to Thailand as the EV Hub. Malaysia needs to drastically increase our attractiveness for other auto makers to invest in our nation. One way is to spur vehicle sales by making the vehicle cheaper and more affordable just to keep greasing the gears of economy. The government might lose out income from those excise duties, but hopefully the country as a whole will gain.
Meanwhile Singapore couldn’t be bothered as they are already rich enough to not play these games. Though they got Dyson…
In thailand, investor don’t need to give 30% of their company away FREE. Thailand allows the foreign company to own the company fully
Here, must give away FREE
By population, we only 30m and can buy car at 600k. Thailand have 90m, but only buy 1m car. We are ahead from them. Only package offer from Gov make them move and second point is,any international company want to open must give 30% share to Bumi. There don’t have. I’m not racist, but one of factor they like Thailand.
this point i like
When the actual price really drop only talk la… Every time take one thing away but add something else…
Great news.. time scrap out old junk on road and change to new car.. lesser hazard, safer and improve of sales.. many will benefit as old car maintenance is costlier than new cars.. Go on………
Thinking only lah. It’s like that hot babe saying she MIGHT be free this weekend but so how first lah. Kena cock tease.
We’re such suckers for the promises, oops, lies told by politicians.
the catch maybe…lower financing percentage or short financing term or higher interest rate or maybe all…
Actions please! It’s been NATO for decades from previous gov.
Rakyat want excise tax to be abolish! Not lower!
Must remove car excise tax, reduce ppl’s burden.
A lot of ppl already bankrupt because of high car prices!
ini janji ka, manefesto ka??? takda V Turn lagi ke! TanKuKu
Bravo!
The power of dreams… keep dreaming.
Never gonna happen. It’s time to wake up.
Should do it long time ago under old govt… excise duty is the culprit..even 2013 BN manifesto includes 30% lower price for cars but they never fulfill it..im hoping the new govt will fulfill what old govt cant
The ministry of international trade and industry (MITI) says it is looking at a reduction in vehicle excise duties as a possible means to bring car prices down – Ini boleh buat modal nak pikat voters cameron highland or maybe to cover-up some uncomfortable party inside MAA that crying their price are not fair enough…cantik, satu batu dua burung! Fair game to everybody- nice move!! Local player-habis!
Lower car prices but make scrapping cars mandatory when it reaches 10 years, this way will keep number of vehicles on the road in check as well as make safe , economical , energy efficient cars on the road
I would like to see Toyota Rush priced the same or not far off as Perodua Aruz. Both comes from the same assembly line with a different badge or country of origin certification. One is bumi and the other is non bumi.
Come on, we have enough jam now. Please increase the car and petrol price instead!
pls. are u driving n own a car? if so stop talking about Jam or Drive.
When badawi lowered taxes on car imports from asean countries owners of honda and toyotas complained their cars lost value. The manufacturers then decided to revert the price to those before taxes were lowered.
Jammed every where, need more parking, open more highway, pay more toll, jammed again, we need cheaper car! First world minded is asking for more efficient and reachable public transport. Not cheaper car. I demand tax car ownership higher!
Just let the tax as it is but zero tax on electric car. Cheaper cars will result in congestion to our already congested road and pollution. Electric car is the future. Let electric car flooding our road and phase out fossil fueled car gradually in say 20-30 years. When the people 100% embracing electric car, just ban totally fossil fueled car.
just looking, more looking and still looking…..dulu kini and selamanya.
Nothing gets done at the end, in Bolehland 2.0
Eh i thought singapore has the highest car price?
I’m in dilemma. I just placed booking on a new car and registered for a number right few days before this news came out.
Ok for me to hold the car for up to 3 months to wait for the outcome of car price reduction?
You can fully expect car prices to increase.
Time to level the playing field, folks. P1 and P2 have been on clutches far too long. Remove the excise tax if possible.
Long overdue. Please act now
Easy.
Tax everyone 5,000 for every new car purchase.
For someone who already bought a new car less than 5 years ago, tax him another 5k. Because he is rich. Can afford.
For ppl who buy a car to drive in city, they need to pay congestion tax. Adds 20k. Penang, JB and KL has a different plate number and colour. Only these ppl can drive into the city during work days.
Import tax applies as usual, for CBUs outside asean.
Then there is the luxury tax. 10k for every 100k. That means for a 600k BMW 740Li, you need to pay another 60k to the govt.
DrM(alaysia) needs to change to provide a freeier International investment and to entice all who have left to return to build the country. Reducing duty on cars is an excellent move but its not enough. Geely will increase some foreign income with its made in Malaysia SUV. But if more top brands manufacturing were to be brought back by 90% ownership, it would increase foreign income. Learn from your neighbor and from your children who have been gaining experience out of Malaysia. Being close minded and playing the race game does not move country forward. Some faction of the raakyat may gain some advantage but country will fall behind its neighbors.
Yes. Reduce car excise duty by much more.
Then people will have more money to spend on other things like food, clothes and travel. Why let the auto industry thrive by strangling others?
Reduce only, not eliminate. Most possibly 5-10% only. I don’t think will change much.
Dont talkok,besok your u tun will gasak you, his macai tak boleh cari makan d…
Goverment talk on no action .. ford car 100% charge the excise duty.. Imaging New Ford Everest price in Langkawi is only 130k++ but in Penisula Malaysia it cost 229k..