Prices for CKD (locally assembled) cars will increase by between 8-20% if new excise duty regulations are put in place, due to a change in methodology of how the open market value (OMV) of a vehicle is calculated, Malaysian Automotive Association president Datuk Aishah Ahmad said at the association’s annual general meeting press conference today.
As it stands, the exemption from the new excise duty regulations stands until the end of this year. “We have written to the government to appeal because they have given us the exemption until the end of 2022. We have appealed to say ‘please let us know if it will be extended or not,'” association president Aishah said.
If there is no extension to the deferment of the new excise duty regulations, car prices will increase from 2023, she added.
The change in price calculation methodology was originally planned to take effect at the start of 2020, and the uproar from both industry players and consumers led the then-government to reverse the move and announced an exemption for one year until the end of 2020.
The Malaysian government’s change of the OMV calculation methodology in 2020 meant that the value computed to determine duties will take into account not just profit and general expenses incurred in the manufacture of the vehicle, but also of its sale.
This also applies to areas such as advertising and marketing, warranty and trade royalty, plus wages and commission. Also part of these are general and administrative expenses such as rental, utilities and office supplies, among other costs, all of which increases the vehicle’s OMV and applicable excise duty.
“We have already submitted a proposal to the ministry of finance (MoF) to revert to the previous policy which did not include non-manufacturing related costs in calculating the OMV, in turn lowering car prices,” Aishah was quoted by Bernama as saying after the association’s annual general meeting. The MAA has yet to receive a reply from the MoF, Aishah said.
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This is the hadiah from PH government back in 2020. I hope the current government can put it to stop.
https://paultan.org/2020/01/21/guan-eng-denies-that-ckd-car-prices-will-rise-with-new-excise-duty-restructuring-any-changes-will-be-gradual/
Recalcitrant Gabriel,
Dont tokok in this auto forum.
What hadiah,u r blabbering ?
Then, now Asiongkor giving out huge MRT 3 packages costing billions..the money come from this excise duty naik ,right?
You can issue bonds..it is still hutang like IMDB bonds,u still need to pay,if not our money drop faster than Russia.
Unrepentant Kunta Albert
You should look in the mirror. What tokok are you saying?
MRT3 has nothing to do with excise duties. It will still go up thanks to your kayangan PH NAP2.0 blardy stupid plan. With MRT3 we have less need to worry on increase of car prices. We will have alternatives. Based on your logic, we are stuck with buying ever pricier cars. You seem to have vested interest for such increases which are detrimental to the rakyat. So shame on you.
exp road tax, exp car insurance exp car prices and soon exp fuel.
The squeeze has begun.
Get ready folks,the cheapest 1.0 litre auto Axia basic will cost RM40,000 soon.
What keluarga bolehland is this? menteri still chaufered around in vellfire fully maintained by Spanco,while rakyat have to swipe Rm10,000 credit card as downpayment when taking a Rm30000 hp loan for the smallest 1 lite auto car…just pathetic.
Where do you think all your bantuan money coming from then?
Looks unlikely to extend so most will end up buying electric or hybrid due to lower taxes. We should by right implement the AFTA for motor vehicles in which all asean assembled vehicles are considered local snd carry lower taxes. We signed but opt out due to proton.
When new car come with CKD was too slow due to need to setup many things, Malaysia alway fall behind.
For big market US, China and Europe. The cars specification alway different, so for car lover in Asian alway best to see first car review in youtube are Australia, Taiwan and follow by Singapore, Indonesia, Thailand, Vietnam and last to Malaysia. Good thing more car come with CBU if the price gap lesser compared CKD so Malaysia can launch the car more early.
And pray tell, what is the basis for the increase of duties? Please inform us the total amount of duties collected when the duties were rescinded and then compare with duties applied. Accountability please.
Accountability is a bad word.It is like the “F”bomb .It never existed in those dudes.
Gaji Naik harga kereta naik
Ni saja je nak bikin panic situation so panic buying. Nak jack sales tactic. Jangan termakan umpan.
Are you sure its not a decimal point mistake?
This is probably the most absurb reason I have ever heard on increasing price on a product. For sure any single business in the world already took into account all cost even those not related to the product directly. Else how are you going to sustain the business? Another reason to make crony richer as simple as that.
Up lar up, at one point sales will be impacted and everything go Holland including government revenue.
You can’t exempt politics talking about this. This ruling was put in place by the previous PH administration.
What will happen is that BN will announce that they will abolish this ruling when they get back to power after next GE. Automatic seen as rakyat’s hero.
PH put that up thinking they will still be treated as heroes and they will rule for a long time despite such efforts to suck rakyat blood. Vampiric karma has bitten them this round.
Malaysian car prices are already ridiculosly among the highest in the world. The only country where buying a car is equivalent to buying a house. Last time 2010 camry selling USD19K in the US equivalent to rm69k, but here in Msia this same car was selling at RM170k. Altis in Indonesia was selling Rm46k and the same car in Msia was selling at Rm112K. 30millions Msians have to suffer to support rich lifestyle of this inefficient well connected AP holders and the inefficient local car industries. An average Msians need to be at 50years old to be able to afford the car that can be afford by average 20yrs old boy in other country. I dont know much about cars, but i knew we are paying 3/4 times higher than the rest of the world. Ever since school days, we are perplexed by observing how come this besi2 thing with some plastic and wire here and there can be so expensive?
Ohh yeah
Together we all burn in hell