The government says it is looking into a potential restructuring of import duties on cars, with both the finance ministry and the ministry of international trade and industry (MITI) involved in discussions, according to finance minister Lim Guan Eng.
Lim said that a joint committee comprising officials from both ministries – and chaired by the two ministers in charge – is studying the matter, The Malaysian Insight reports. “Car excise duties used to be under MITI, but now we have a joint committee that looks at not only investments but at duties and taxes. However, wait for a joint announcement to be made,” Lim said.
There was no intimation on the mechanics of the restructuring of duties and taxes, and whether it would result in cheaper cars on the whole. A year ago, MITI had said it might be looking at a reduction in excise duty for vehicles as a possible means to bring car prices down. It said that while such a move would result in less direct revenue for the government, it would be offset by improved tax collection from increased vehicle sales.
Deputy minister of international trade and industry Ong Kian Ming had said then that on the whole, this would benefit consumers, industry players as well as the government.
“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 said.
Apart from the 10% sales and service tax, all vehicles are slapped with excise and import duty. Excise duty is between 60% and 105%, calculated based on the car and its engine capacity, while import duty can go as high as 30%, depending on the vehicle’s country of manufacture. However, vehicles built in ASEAN countries and Japan are not imposed with import duty.
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If you read between the lines, Govt “structuring” could only mean “add more tax and squeeze more from rakyat”.
Whatever the case, car prices (be it CKD, CBU) has been going up all these while.
So, what is new and good news for the rakyat? Benefit to rakyat always come last.
Kan dah beritahu Manifesto sebenar kita; penipuan diutamakan, janji dicapati
Vellfire and Accord for ministers are cheap. No issue here.
Abolised APs majority abused and corrupted
Why must cars be cheap for ministers only and expensive for the rest of our rakyat? Is the country belong to just our ministers or the rakyat? The ministers should be serving the rakyat, not the other way around.
Seperti dijanjikan, harga kereta akan diturunkan secara berperingkat … syabas LGE
EXACTLY. Spot on, Sir!
Car price going up all these while? Pls check your fact right before you comment okay. Car price is actually dropping or maintain but latest car models are giving greater features now than before. FYI the cheapest City IDSI 1.5 is selling RM84k (no discount and no freebies) with less features back to 2003 and after 17 years in 2020 the City cheaprst model is RM74k (this has not include discount and freebies given).
Proton Wira 1.5 AT is selling RM55k (no airbag and no ABS) in 1998 and now Persona 1.6 CVT is selling at RM45K and you got not only airbag, ABS and you even get the ESP.
So tell me price goes up or go down? I work in car industry so many years and I do have a list of data with me. Are you?
Increased import tax 200%, taxed the rich. Subsidized the poor and public transportation…
It cost more to build mrt’s and provide bus service than just building roads and let private cars use it.
We want removal not restructuring. If you going to remove petrol subsidy, it should come with import tax & excise duties removal. Anything less and you are just playing with the anger & discontent of the rakyat.
pay full petrol price but remove this heavy duty price tag…do a simple calculation, this heavy tax is prepaid your petrol for 5 years! (small town even more!)
by then, we can see more fancy car on the road rather than myvi
The Government should focus to improving infras on public transport instead. Lower down imported car prices just to address public sentiment? Non-sense, too many announcements, no actions in reality.
It cost RM30 bil just to build mrt1. That amount about the same cost as building entire north south highway. Building mrt is expensive and gshmen losses money if its operating at half capacity. Currently its only at 25%.
With the upcoming 3rd national car, you expect we believe on your “trick or treat” statement ???
This fella talk only, the old man will ensure this wont happen.
Useless Nobita minister. When you have kapcais that cost 2X of what it used to be just a couple of years ago, the fundamental problems you should tackle isn’t just the import duties. You are looking at the grass while the forest spans the whole view.
Bkn slh dia la..zaman Barisan Najib lg dah naik harge la
A lot of ppl still waiting new gomen to remove excise tax. So far it won’t happen under Tun M’s reign, cause his is still waiting his 3rd national car 2 be happened & to be protected. Since all his cronies were being removed by Dr. Li from Potong. Those who wait for DS Anwar as next PM to lower car prize seems have to wait longer.
Why should we remove car price when the traffic is already so congested. Our car price is expensive? Thailand car price is expensive than us and their petrol price is RM4.2 per litre for RON95 while their fresh grad start up salary is average RM1500 (not yet include tonnes of fresh grad is employed) but Malaysia is about RM2000 for fresh grad. Still complain your life is difficult?
But lexus from Japan so expensive!!!
But but but…. Velfires and Accords will be cheap… for ministers lah!
Real fans don’t care about expensive Lexus! You simply have to work harder, longer and faster!
blah..blah..blah..blah..blah blah..
only talk-kok,never had any positive results for rakyat
current MOF bring nothing good to the rakyat!
No import tax for japan CBU?
Then why umw Toyota selling the vellfire at 360k?
And if that is the case we could have seen many more CBU Japan …please la Nissan and Mitsubishi. And Toyota too.
Thats because excise duty is probably at 105% due to engine capacity and sales tax of 10%.
relax, they are just looking at it right now. Looking at it take 2 years,
then they will start discussing. Discussing take another 2 years. After all debates are done, if it ever gets an approval, they will take 3 years to plan it.
Bla bla bla – lazy wanna read what these ministers and their guys say these days
when the decision has been made, prices of cars will go up in the name of the country is still in debt and government needs the revenue. In the meantime if the people who complains a lot can take the ridesharing (in which gov has legalized it for the people’s convenient) or take the train in which the PH has benefited the people to keep their costs down.
Hmmm… i also know how to give excuses like a politician.
Why would gomen kill the golden goose? Even IF they reduce, there will be another form of tax/duty/levy to recover back the loss.
No way Rakyat di Dahulu kan. Only crony and politicians di dahulu kan. Syukur Msia Aman.
Damn.. I fear for the worst. Reduce in excise duties then backfired with floating petrol prices, end of life vehicle scrapping policy, increase in road tax, insurance,… and the introduction of a new tax that tax the frequency of road usage and the worst of all… that $$$ vehicle permit thingy like Singapore.
Yes, you are right man. Those countries with lower car price is always come with higher petrol price, expensive road tax based on displacement, higher insurance premium, expensive tolls, expensive public parking etc. Australia car price is much cheaper than us but petrol price is RM4 per litre for RON95
When badawi reduced taxes on cars from asean countries, specifically thailand, the owbers of hondas and toyotas protested saying their car value dropped. So the dealers put up the prices again, making huge margins instead of gahmen making the money. (Honda accords and toyota camry prices dropped from RM140k to RM120k under badawi. )
Toyota and Honda shall double their prices: Better RV!
not purely pak lah did it. it an agreement between asean
“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.
-ayo! Cannot brain lagi ka? Petrol subsidy u guys going to abolish! WTF are u talking about reduce revenue, no need to subsidized the petrol can offset la the reduction in revenue from excise duty tax…ini PH bodih ka???
Too many cars on the road… not worth buying a fancy import if you’re going to get stuck for an hour in traffic…
Ultimately it is the banks that profit the most. We are technically paying interest on these excise duties too. If car prices go down, more Malaysians can afford to buy property sooner.
Just scrap the road tax.