Honda price increase doesn’t affect car industry – no change in excise duty rates, says finance ministry

Honda price increase doesn’t affect car industry – no change in excise duty rates, says finance ministry

The ministry of finance (MoF) says that the increase in the price of new Honda vehicles that was announced last week does not affect the current situation in the country’s automotive industry, Bernama reports.

It said via a statement that the government has always ensured that tax policies imposed on the locally-assembled or completely knocked-down (CKD) vehicle production industry will not impede business growth or increase the market price of CKD vehicles.

“The people will benefit directly from the tax incentive enjoyed by CKD vehicle producers through competitive sale prices and indirectly benefit from the economic opportunities created, in line with the government’s aspiration under the National Automotive Policy (NAP) 2020,” the ministry said in the statement, which was issued on Sunday.

“It is imperative that companies comply with the audit review and adhere to the existing duty/tax exemption policy and incentive so as not to raise any issue, and act fairly to all companies that abide by the same basis and use the right criteria,” the statement read.

The government emphasised that there is no change in the excise duty or customised incentive exemption policy under the Industrial Linkage Program (ILP), and that impacting Honda does not affect the entire automotive industry.

It said that the Automotive Business Development Committee (ABDC), as the party that evaluates and recommends incentive approval for companies, is still using the same assessment method without any changes. “Hence, the excise duty exemption rate enjoyed by Honda at this time is reasonable and corresponds with the actual level of localisation achieved by the company,” the ministry said.

The MoF issued the statement following the announcement made last Friday by Honda Malaysia, in which the company said that there was a 5.3% to 9.25% increase in the selling price of some of its models and variants. According to Honda, it made the price increase after a review of the customised incentives for its CKD vehicle production, and following the audit, increased its compliance with duty/tax exemption incentives on its CKD vehicles.

As mentioned earlier, it is important to note that the adjustment is not as a result of any increase in duties, and does not affect the entire industry, with no other brands expected to announce any increase in pricing.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Billy Bob the Redneck Malaysian on Feb 24, 2020 at 10:41 am

    In America you can buy a Mercedes for the price of Honda. Thanks Tun! To hell with your taxes !! I love getting fked by your taxes!

    Like or Dislike: Thumb up 17 Thumb down 2
    • kingslayer on Feb 25, 2020 at 10:45 am

      Why Tun? Ur fxxkup ex-MOF was the one.. haha..

      Rindu zaman Tun ehh… kah3

      Like or Dislike: Thumb up 9 Thumb down 1
  • Vicky on Feb 24, 2020 at 10:42 am

    With onda price increase, who is going to buy Honda now with no AEB, low quality and services?

    Like or Dislike: Thumb up 9 Thumb down 2
  • Oscar on Feb 24, 2020 at 10:57 am

    Don’t give so much bs, in the end those extras still comes out from our pocket. Increase means increase, couldn’t care less for what factor.

    Like or Dislike: Thumb up 12 Thumb down 0
  • Gabriel on Feb 24, 2020 at 11:00 am

    What I learnt from all of this is to not trust what the Finance Minister is saying.
    Honda hands are tied, thus having no choice but to follow the government of the day to increase the price.

    Like or Dislike: Thumb up 14 Thumb down 0
  • Western Star on Feb 24, 2020 at 11:35 am

    At this point I would wait and see before making conclusions. Obviously Honda had been in the past competitive with their CKD pricing and they wouldn’t have simply forced the huge increase onto customers without proper reasons. At the moment I would rather trust Honda pricing than what LGE is trying to say here. Can’t trust these PH mofos unless with ironclad proof.

    Like or Dislike: Thumb up 9 Thumb down 2
  • Truth on Feb 24, 2020 at 11:44 am

    thats it honda, your sales gone

    Like or Dislike: Thumb up 9 Thumb down 1
  • Pakatan is completely CRAZY! At this point of the market softening with coronavirus, lowest EPF in a 11 years, recession coming soon, they put all this cars more expensive than before NAP2020?!?!?!
    Mega LOL!

    Like or Dislike: Thumb up 22 Thumb down 0
  • vivizurianti on Feb 24, 2020 at 11:52 am

    Ya, 5.3% to 9.25% increase will not affect car industry right? Malaysia economy also the most robust and plenty of growth right?

    Must be that Malaysian are very rich and wouldn’t even feel the prick financially. So, party on and buy things like no tomorrow, Malaysian!

    Like or Dislike: Thumb up 9 Thumb down 0
  • Ben Yap on Feb 24, 2020 at 11:52 am

    the increase is so minimal. to those who wants to own a honda but complaining at the price, it’s better that they take a 9 year loan as long as want to jaga muka. if still cannot afford, honda is too expensive for you. just get a bezza and it’s a motivation for you to earn more to drive at least a civic turbo.

    Like or Dislike: Thumb up 2 Thumb down 15
    • Calvin on Feb 24, 2020 at 2:41 pm

      With the increase, a 5 year loan would become 7 years to be afforded, a 7 year loan would stretch to 9 years but what about those 9 year loans? Can stretch to 11 years? The car condemn dy and you still have to pay for the loan. How lah PH?

      Like or Dislike: Thumb up 11 Thumb down 0
  • Honda 'First man, then machine' on Feb 24, 2020 at 12:05 pm

    Honda increasing price is not an issue. it is a welknown, a premium brand and even with the price increase, their cars are still consider under priced in comparison with the status, luxury and the quality that you get. the Honda Jazz is as good as a VW Golf, the Honda City is as good as the Merc A series, the Civic is equivalent or better than the BMW 3 series and the Honda Accord is as good as the Merc E Class, while Honda CRV is as good as Range Rover Velar. There is no complains from the sales dept as selling Hondas is a breeze. Only poor people cannot afford Honda will be complaining and comparing it to Perodua. So pathetic

    Like or Dislike: Thumb up 3 Thumb down 18
  • Danny on Feb 24, 2020 at 12:40 pm

    Liar

    Like or Dislike: Thumb up 3 Thumb down 0
  • So, Honda want to profiteer (untung melampau) and try to put the blame on the government? Looks like the MOF is not having any of that and decide to expose Honda’s lies.

    Like or Dislike: Thumb up 11 Thumb down 1
  • Justice on Feb 24, 2020 at 1:25 pm

    honda sales gonna impact for sure

    Like or Dislike: Thumb up 8 Thumb down 0
  • YB Albert Kunci Kunta on Feb 24, 2020 at 1:53 pm

    Boycott buying Honda cars if it is unwilling to revert to earlier prices.
    It is like the kleptocrats trying to form a gomen thro the back door.
    Other car distributors have not raised prices.
    Who the hell DRB /Honda think they are?You think rakyat stupid,bodoh,nyanyok?
    Buy other brands instead .Rakyat..exercise your God given brains,by rejecting excessive profiteering.
    Remember,when the sales drop..the prices have to drop.

    Like or Dislike: Thumb up 8 Thumb down 4
    • Other car brands haven’t raise prices doesn’t mean they won’t be raising prices. Most likely when their current CKD stocks are replenished the new stocks will get a price increase. This is New Malaysia after all…..

      Like or Dislike: Thumb up 10 Thumb down 0
      • Over-Declared Local Contents on Feb 24, 2020 at 10:09 pm

        They should play smart, hold it, let the other do it first. Then Silently follow the hike trend and in via media, just blamed in on the new
        CKD OMV calculation revision.
        the truth is ‘over declared local contents’ and the custom/GOV intend to wipe out this bad practise.

        Like or Dislike: Thumb up 6 Thumb down 1
 

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