The government has no plans to review the tax structure for the automotive sector, in particular that of excise duty because it is important for the industry’s development, according to minister of international trade and industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
He explained that maintaining the current level of excise duty was important, since it plays a crucial role in spurring activities such as local CKD assembly (CKD) programmes and vendor development, as Bernama reports. “This is meant to encourage local vendors to participate in the development of the automotive industry,” he said during the question-and-answer session in the Dewan Rakyat earlier today.
Tengku Zafrul, who was responding to a supplementary question from Datuk Seri Wee Ka Siong (BN-Ayer Hitam), said the government was already offering tax incentives in the form of exemptions or reductions in excise duty for local assembly as well as an exemption or reduction in import duty for components brought into the country for CKD programmes.
He said that the rate or level of incentives provided is dependent on the merits of a business plan, and these include items such as the amount of investment, vendor development, technology transfer and export plans.
He added that automotive products such as completely built-up (CBU) and CKD vehicles as well as imported components currently enjoy much lower rates of import duty, even up to 0%, under the Asean Trade in Goods Agreement.
To a supplementary question from Azahari Hasan (PN-Padang Rengas), Tengku Zafrul said the excise duty for affordable vehicles, especially cars below RM50,000, was low at between 2% and 5%, compared to rates of between 60% and 110% for luxury cars.
He explained that vehicle prices are not controlled by the government but influenced by market forces and associated costs, such as that of components and technology utilised, transport and logistics as well as insurance. “We hope that with technological advancements, car prices will drop along with higher demand in the future,” he added.
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Errr! So no reformasi?
We signed the asean free trade agreement but did not honour it. If we did, more car manufacturers would have based their plant locally. And create a bigger market for proton and perodua.
Honda closed philipines plant before Covid19 lockdown started.
https://paultan.org/2020/02/25/honda-ends-production-operations-in-the-philippines/#:~:text=Honda%20has%20announced%20that%20it,workforce%20of%20around%20650%20personnel.
It is not necessary any foreign investment will go success.
Then we will suffer for being the supplier, car owner, no parts, no business continuity, no used car value.
“He explained that vehicle prices are not controlled by the government but influenced by market forces and associated costs, such as that of components and technology utilised, transport and logistics as well as insurance. “We hope that with technological advancements, car prices will drop along with higher demand in the future,” he added.”
Because of nationsl car protection, prices are controlled by the gomen by taxation. Only if its a level playing field that prices are not controlled.
Consumers in the country are hounded by a parasitic economy where a few feed on the many.
Yeah I was surprise he had the guts to say that this is not controlled by the govt when it so blatantly is.
Perodua suck 33m rakyat blood again with new AXIA. Axia below 50k price tag should less tax less expensive, but why still increase price, so meaning NEW AXIA untung Kawkaw lagi higher profit margin.
Zafrul must think Malaysians are bunch of monkeys who can’t understand language so he says rubbish like this.
Never seen a product where tax doesn’t effect price
Oh my, we’re finished.
refer my name
2 x 5
because you can always buy myvi alza vios city
axia 40k, vios 90k
This minister not voted by Rakyat, yet holding such an important post. Still being investigated by MACC. Can we have someone more competent for this post???
He’s good what. You can check his background.
Reformasi it seems is just a empty slogan. We get the same old bullshit.
MAKE SOME PPL RICH At THE EXPENSE OF EVERYONE
Our current Economic Minister last time say can? Now become ruling government cannot? Only know how to sweet talk the Rakyat but nothing changed.
Reformasi? BS
Hello Donkey Zafrul “ plays a crucial role in spurring activities such as local CKD assembly (CKD) programmes”
HOW LONG SINCE 1970 PROTECTIONISM
IF THEY CANT MAKE IT NOW JUST CLOSE SHOP, it’s 2023.
Malaysians have been paying for the incompetence of proton through 9 year loans for a car where half the cost is taxes
“vehicle prices are not controlled by the government but influenced by market forces and associated costs, such as that of components and technology utilised, transport and logistics as well as insurance“
So excise duties doesn’t make the car more expensive, what logic ????? Zafrul you think we dumb ka ???? How do you have a job lol
Dude Zafrul this has to be the stupidest statement in the century, kebodohan kau meleleh keluar
Raja Formula please step in. The cars are getting more expensive like a slap to Raja Formula’s face .