The Auditor-General’s Report 2018 Series 1 has revealed that from 2015 to 2017, the government provided RM4.89 billion worth of excise duty exemptions to locally-assembled (CKD) vehicles, The Edge reports.
Various excise duty exemption incentives were granted by the government during the period, and included that for state assemblymen, members of Parliament, embassies and the government as well as for the Returning Expert Programme (REP) and Malaysia My Second Home (MM2H) programmes.
There were also exemptions given via special approval from the ministry of finance (MoF) and the exemption of excise duties for energy efficient vehicles (EEVs), which was introduced under the National Automotive Policy (NAP) in 2014 to provide incentives for fuel-efficient, hybrid and electric vehicles.
The report stated that from 2015 to 2017 a total of 73,250 units of CKD vehicles were given excise duty exemptions of up to 100%, amounting to RM4.89 billion. The percentage of exemption listed in the AG’s report was clarified by the MoF in a written response in January this year, in which the ministry explained that while EEVs covered EVs, hybrids and petrol/diesel vehicles, the 100% exemption of import and excise duties were only considered for EVs and hybrids.
For petrol/diesel vehicles that obtained EEV certification, the level of import/excise duty exemptions were considered based on a cost-benefit analysis and were approved by the ministry after deliberation by the Automotive Business Development Committee (ABDC).
Three states were sampled in the audit, and these were Pahang, Kedah and Selangor, all of which accomodate vehicle assembly facilities. From that RM4.89 billion worth of total excise duty exemption, the report indicated that the exemption that was approved in these three states amounted to RM4.095 billion, or 83.75% of the total.
The bulk of the excise duty exemption was for EEVs and fleet management service provider SPANCO’s vehicles, and these totaled RM3.862 billion, or 94.3%, of all approved exemptions during the three-year timeframe.
It was the opinion of the auditor that the rating system for EEVs by the road transport department (JPJ) – which is based on UN R101 regulations that were not complete, especially in relation to carbon emissions, but which nonetheless allowed a 100% exemption in excise duty to be given – needed to be reviewed.
Noting that Thailand utilises carbon emission rates as part of regulations for its eco-car programme while also imposing excise duties on eco-car models, the report said that a review will ensure that excise duty exclusions will not affect the collection of state revenue and, concurrently, ensure the success of the NAP.
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Don’t raise the excise duty or we will do a Hong Kong in KL. Our PM and ministers get more that theresa may of UK, a country with economy 8 times ours. Cut down politicians pay first.
Now the time to Abolish excise duty and AP.
when Proton Iriz and Honda Jazz both selling for Rm55k. Logically local pipu wud get the Iriz.
251228-M = Innokom
106864-D = Hicom
Spanco deals with gomen fleet of vehicles
Make your own conclusions.
Innokom
251228-M
DRB Hicom
106864-D
532120-D
100995-U & 614278-U
UMW
400709-X
21542-A
Khazanah and KWSP should takeover SPANCO’s lucrative and gerenti untung for the supply, repair, maintenance and management of the government’s vehicle fleet for a concession period of 15 years,
You are right. The last auditors report show that the previous generation Perdana, although priced at RM100k each, had a service bill of RM100k for 3 years.
This is shocking. I repeat. Every Government Perdana, had a service bill of RM100k every 3 years. This is despite the car having a Proton warranty for 3 years.
OMG OMG OMG. This has been going on for over 20 years.
How can a Perdana, which cost RM100k, can have service bill of RM33k per annum?
I had a Proton before and per annum, I pay about RM3k in service and tyres.
OMG OMG OMG
Selangor Government 2015 to 2017 with SPANCO berpisah tiada.
Spanco company abang abang yang tak suka kerja
Hmmmm……I recommended to tax all Korean Cars like Hyundai and Japanese Cars like Toyota, Nissan and Honda. That way more people will more encourage to buy national cars like Proton and Third National Cars. Furthermore, when workers looking for pick up trucks, they have many choices to buy Ford, Isuzu and Mitsubishi. Anyway, we all of us just want to say that we hope that our government will not going to impose tax for BMW, Mercedes, Proton and Volvo because environment is more important.
But First, made the quality to tally the prices of national cars
Lost RM4.89 billion! Wth Govt 2015 to 2017.
Instead of tasking AG to find out why Pakatan Government debts rose RM 200billion in just 1 year in office, they go and ask their lackey AG to wayang something irrelevant like how much revenue was lost because the people didn’t have to pay for excise duties. Go fly kite lah Pakatan!
Pengurusan Tertinggi SPANCO secara terang membantu langsung Kempen.. jom terjah
You LOST something that shouldnt be there in the first place.
Now high time already for cars to be made as parity to others.
RM4.89B buy free tol LDP, Sprint, Kesas in 2015.
Really? So punish the mid and low income class and give advantage to higher?
The amount of RM rebates given to Mercedes, BMW and Volvo is sickening.
Audit Negara should look into this. Why lose money to foreigners?
If you believe in that then you a bigger fool than i thought you were.
Take BMW for example, it is a euro 3 engine not a euro 6 as the ones sold in Europe. The emission standard and fuel consumption does not meet standard but bmw Malaysia claim it does.
The truth is it is hard for MITI to come up with emission standard for eev.
Firstly because it would affect JAMA and national cars who doesnt reach certain emission standard and prefer lower cost of entry to the malaysian market.
Secondly, ir is down to the implemtation of a higher euro standard fuel. Our current euro 2m petrol is in the dark ages. We should be heading for euro 6. However it will be sept 2020 before the implemtation for euro 4m.
For sure a cleaner environment is the right direction, but just implementing a new NAP (whenever that comes) will not change the majority on the road. Emission standard must be
Implemented to existing cars also, hence th3 scrap policy.
What are they trying to tell? That rakyat had saved RM4.89 billion because their CKD cars didn’t get excise taxed? So what?
Thank you Najib for saving us RM 4.89 billion!
Correcto. Thank you for saving us RM 4.89 billion + RM 55 billion 1Mdb ! Lolz
Fully agree! 60 billion saved, now we are wasting 44 billion on stupid ECRL realignment that will kill the purpose of this project.
The only thing they need to do is stop giving vehicles to the premier grade posts in public sector. These people are abusing it for makan angin and balik kampung whereas it should only be used for official matters only. Some even claimed for mileage and tolls as well. Instead of providing cars can just giving them extra allowance as if they don’t own any personal car.
Don’t penalised the rakyat at large by removing EEV incentives as it has proven in NAP 2014 to reduce the car prices tremendously. They must have forgotten the fact that only ckd version is entitled so when we lose out on excise duty we actually generating revenue from employment which in turn increasing local spending.
missing GST tax refunds… and now this. PffttT
Irrelevant to this blogsite. You want to troll, go somewhere else.
what subsidi? why the car keep getting more expensive?
It is misleading to say gomen lost out.What about high import duties on cbu n non national cars?High time pakatan reduce duties.With so much corruption untackled,rakyat deserves lower car taxes.
Excise taxes are meant to be removed. If the government is so greedy that they don’t even plan on doing that why can’t they at least allow Malaysian to enjoy cheaper green car at least. For god sake just leave it at 100% we already have car prices that are already exorbitantly priced
Car EEV is a failed scheme…you see the top 3 manufacturer is all selling luxury cars…who benefits more on this EEV? it should refine into pricing category as well if possible.
You meant P1, P2 and Honda are luxury car manufacturers? Then you must be dead broke
When taking Proton into account, these are luxury manufacturer.
read the article la.. he meant top 3 car manufacturer that benefitted EEV scheme. Merc Bmw & Volvo.
Typical BMW owner. Too stupid to look at the fact
That is because charging stations is lacking behind, for the rich, they can buy these eev as part of their toy collection, they can use it for city driving only and then pop into their other petrol car for long distance, we the poor have to buy 1 car to fit all.
Beg to differ. 6148 units Proton Accordana sold.
Wait for the flying car.
Don’t forget the car price in Malaysia is one of the highest in the world. Hilang poket kiri masuk poket kanan maa.
Obviously you did not drive your MyVi1.5s to our neighbor Singapore and ask how much they are paying for their cars.
“The bulk of the excise duty exemption was for EEVs and fleet management service provider SPANCO’s vehicles, and these totaled RM3.862 billion, or 94.3%, of all approved exemptions during the three-year timeframe.”
So yeah. to summarize the wall of text. This is the issue. So what’s with the sensational headline?
So why is SPANCO managing the government fleet? Government agencies can’t manage their own fleet?
So you want agencies to open up their own maintenance Dept, hire more people, while at the same time decrying about the myth of ‘bloated civil service’….?
Nope. Just assign a small department for each ministry to handle servicing. For the first 3-5 years all cars need to go back to franchise SC in order to maintain warranty cover. So, no need workshop. Just send there. The charges are more or less similar to spanco, maybe a lot less
If the entire fleet of civil servant cars and police cars have to return for servicing at SC every month, Proton’s private car owners will curse for the long waiting times and cancellation of their slot due to urgency of servicing patrol cars. Is this better than having SPANCO?
Maybe gov should fully utilize other agencies to maintain their car fleet…exp..exp..to let the PDRM logistic & maintenance dept or army engineer corps to do the servicing and repairing of goverment car fleet.
this are all nonsense…by show something untrue n want to give a reason to increase some more on it?… pls la u think rakyat still gone beleive on this?..
this are all nonsense…by show something untrue n want to give a reason to increase some more on it?… pls. la u think rakyat still gone beleive on this?..
What about excise duty that the rakyat lost out for the past 34 years just to keep PROTON afloat?
What about PROTON lands gobbled by Drb?
The money proton made are at the expense of rakyat by paying more. Its karma.
Proton very few EEV. So proton had been model citizen by paying excise duty unlike others. Syukur.
It is the previous policy regarding tax duty. so what is the point to tell using keyword “lost out”?
Or this news just to justify the car price will be hike even for ckd?or gov agencies need to pay the same market price for their fleet?
I know the Government need money from new tax. don’t forget prototaip kereta terbang will come out soon. maybe can get intensive or tax exemption if buy one.
Without the tax incentives, the sales wouldn’t be there. So there will be no RM4bil to earn. In other words, no loss no gain either way but do not forget it still puts money into the economy so don’t complain.
heard the eev plan would be scrapped.
1 look at the figures and you see the top 3 brands that benefit the most.
it’s meant to make cars cheaper for most people but those that buy conti are the ones that benefit.
totally lopsided. and get rid of proton’s protection since its no longer national car. give the other japanese brand and euro brands a level playing field.
perodua to be the only national car now.
Explain how is Perodua a “national car manufacturer” when their cars have never originated from them?
Kudos to the previous government for making sure that car prices are low even though that will make the government losing income.
Fast forward to 2019, we are seeing that cars are getting more expensive, which will inadvertently affect the lives of us normal people. No initiatives to address this matter from the new government which currently busy politicking.
Macam hancing jek. Proton facelift models all cheaper by 2k-6K.
Fast forward to 2019, we are seeing that cars are getting more expensive,
Proton only. Camry got price increase, Mazda cars got price increase, even motors got price increase!!!
This MAI is a joke. I ran a Bumiputera company and have been doing projects with government agencies for a decade. The mentality of these government people are just simply out of this world. They seems unable to comprehend even the simplest way of solving problems. Let alone providing solutions for serious issues like economy, education, national security, healthcare, etc. Technological advancements, scientific exploration, renewable energy, new automotive policies? Forget about it. Now i can understand the underlying problem of our country facing right now is not whoever the ruling coalition is, it is the people within all the government agencies that drag us down. U can change the the ministers, but the people within these agencies such as MAI are basically still the same. The are not competitive enough to make crucial decisions that will affect the future of this country.
Critical thinking is not a requirement. What would you expect?
The top guy in government agencies dont even know to use keyboard. What would you expect?
Lose out? Come on man this is profit for the government because this stimulates the economy in return with domestic spending. It’s a win win situation.
The headlines are getting more and more crafty with the current government. The obsession of finding the previous government in stealing money has become a daily chore. It’s like an addiction you can’t get off with. The public is also having a hard time shaking it off and accept the fact that they wasted thousands since the last two GE’s to fly back to vote absolute idiots in.
there is no business like the tongkat business. manufacturing would have cost less&less over time. somehow prices dont reflect this. fat cats getting fatter and fatter. all thanks to tongkat lords
You can’t count the money that is not there dude!
If there was no EV exemption, then the sales number of the published sheet won’t look like this. Common sense la, ahdui. All these ppl which Uni one?
Same uni with our current crop of Deputy Foreign Minister, Housing and Local Government Minister, Finance Minister, Defence Minister, Perak MB, Johor MB, and perhaps many more we haven’t found out. Scary these people are in the government.
You forgot the palm oil fairy…she’s so uncultured that no one in the world wants to talk to her. She’s no different then the kuehteow woman forcing every government function to talk about her obsession.
so many keyboard warrior here..lulz
Can’t blame them when they’re getting paid to divert attention from Selangor Government of 2015 to 2017 that gave the maintenance deal to SPANCO.
The same ones who went to protest and sleep in the streets …. it never ends
Obviously you did not drive your MyVi1.5s to our neighbor Singapore and ask how much they are paying for their cars.
Which is obviously why P2 sales there is telur until today.
At a glance due to the usage of negative words make one thinks bad of the government but in actual sense it was a incentive program.
We (rightfully) complaint about high car prices, yet still hoping for RM 1.50 petrol.
If I have my ways, I’d rather have cars at real world price (with a bit tax) combined with fuel at real world price too.
Stupidity has no limits. Esp in MAlaysia
Said it before, EEV criteria is a joke. We gave 2.5 billion to Merc and BMW. What a rich country