The Malaysian Automotive Association (MAA) says it has submitted another letter asking the government to reconsider the association’s appeal regarding the revised open market value (OMV) calculation for excise duty, which was prepared by the ministry of finance (MoF) and gazetted on December 31, 2019.
Originally planned to come into effect in 2020, the new structure has not been implemented, although it remains a matter of when rather than if. The association has been continuing to ask for its introduction to be delayed, stating that the new excise duty calculations could further increase CKD car prices if it is enforced next year.
Its president, Datuk Aishah Ahmad, said that MAA was still waiting for a reply from the finance ministry (MOF) regarding OMV. She added that the association has had talks with the customs department over the matter.
“MAA has held discussions with the customs department, and they have indicated that they will support for the OMV calculation method not to be revised,” she said last week during the MAA briefing on the performance of the automotive market for the first half of 2022. “So, we are still waiting for the official approval letter from MOF. They (MOF) are still looking at this matter but I expect there to be positive signs,” she added.
Previously, Aishah had said that given the current economic climate, any additional price increase would burden consumers and affect the competitiveness of the local automotive market.
Based on the terms of the new regulations, completely-knocked-down vehicles will be liable to pay more taxes due to a change in methodology of how the OMV of a vehicle is calculated. This takes into account not just the profit and general expenses incurred or accounted in the manufacture of a vehicle, but also of its sale. You can read more about it here.
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CKD should pay less tax than CBU.
All CBU tax should be priced higher, unless it’s a thing local not able to Produce complying to any international standard yet. For example – EV Car. It’s a 2 stage tax saving ongoing by 2023, 100% tax free for CBU will be reduced to 50% tax free, which is done fairly. More tax subsidy for the CKD EV.
2 major impact –
Malaysian need Job opputurnities, should be the Export Hub too!
Not just a looser importing hub.
And even less ppl will know how to repair those CBU cars, ended up becoming a pre-mature junk, faster rate.
Finally, failing to meet sustainable goal, creating more waste.
Even smartphone now moving forward with repair policy.
Ridiculous that they would even THINK of increasing prices. More to protect rebadged Proton and Perodua. These cars don’t even have basic Apple CarPlay! Complete ripoffs
Malaysia top 5 smartphones sales doesn’t even include iPhone.
Lol. Over 90% ppl choosing Samsung, Xiaomi, Oppo, Vivo, Realme Androids.
https://soyacincau.com/2022/06/12/idc-malaysia-phone-shipments-declined-by-28-8-q1-2022/
Less than 10% ppl buy others –
Which include Huawei, Lenovo, Motorola, Nokia, Sony Androids and iPhone.