Government has no plans to review the tax and excise duty structure for automotive sector – Tengku Zafrul

Government has no plans to review the tax and excise duty structure for automotive sector – Tengku Zafrul

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.

Government has no plans to review the tax and excise duty structure for automotive sector – Tengku Zafrul

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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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

  • 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.

    Like or Dislike: Thumb up 8 Thumb down 3
    • Datok on Feb 24, 2023 at 6:47 am

      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.

      Like or Dislike: Thumb up 6 Thumb down 0
  • “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.

    Like or Dislike: Thumb up 19 Thumb down 0
    • Yeah I was surprise he had the guts to say that this is not controlled by the govt when it so blatantly is.

      Like or Dislike: Thumb up 4 Thumb down 0
      • Sohai on Feb 25, 2023 at 1:19 am

        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.

        Like or Dislike: Thumb up 2 Thumb down 0
    • Theodore on Feb 24, 2023 at 6:01 pm

      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

      Like or Dislike: Thumb up 1 Thumb down 0
  • Oh my, we’re finished.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Janji dicapati on Feb 24, 2023 at 4:52 am

    refer my name

    Like or Dislike: Thumb up 15 Thumb down 0
  • Reformasi jadi reforBASI on Feb 24, 2023 at 4:52 am

    2 x 5

    Like or Dislike: Thumb up 13 Thumb down 0
  • because you can always buy myvi alza vios city

    Like or Dislike: Thumb up 0 Thumb down 1
  • Tengku Zafrul under MACC on Feb 24, 2023 at 9:05 am

    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???

    Like or Dislike: Thumb up 16 Thumb down 0
  • Roti Canai on Feb 24, 2023 at 12:26 pm

    MAKE SOME PPL RICH At THE EXPENSE OF EVERYONE

    Like or Dislike: Thumb up 2 Thumb down 0
  • Boy Racer on Feb 24, 2023 at 3:20 pm

    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

    Like or Dislike: Thumb up 1 Thumb down 0
  • 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

    Like or Dislike: Thumb up 2 Thumb down 0
  • “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

    Like or Dislike: Thumb up 2 Thumb down 0
  • Dude Zafrul this has to be the stupidest statement in the century, kebodohan kau meleleh keluar

    Like or Dislike: Thumb up 1 Thumb down 0
  • No Formula Folk on Feb 26, 2023 at 8:49 am

    Raja Formula please step in. The cars are getting more expensive like a slap to Raja Formula’s face .

    Like or Dislike: Thumb up 1 Thumb down 0
 

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