The Pakatan Rakyat’s (PR) electoral pledge to cut car taxes will not adversely affect national carmaker Proton, saying that local cars will still be the cheapest under the proposal.
PR is offering a complete revamp of the National Automotive Policy (NAP), including slashing hefty excise duties and reducing the triple-tax burden imposed on cars here, should it come to power in the next general election.
The offer to voters will effectively boost the disposable incomes of Malaysians and reduce household debts, the federal opposition has said.
That excise duties are now imposed on all local or foreign makes.
If excise tax is abolished... what doesn’t change is the price advantage, what changes is the tax,..
Proton and Perodua will remain the cheapest cars in the market after the tax cut.
Malay rights group Perkasa had voiced its concern that PR’s move will cause Proton’s sales to drop and also cause Proton employees to lose their jobs.
Malaysians pay inordinately high prices for cars mainly because of the protection afforded to national carmaker Proton since 1984.
The public pays import, excise and sales taxes that translate into some of the highest car prices in the region.
A recent income survey found that a household earning RM3,000 a month could spend up to 50 per cent of its income on maintaining a car.
A cut in car duties — which currently run as high as 105 per cent — could help stimulate the economy by boosting disposable income and reducing household debt burden..
The high taxes now have resulted in about 20 per cent of the RM581 billion total household debt in the country last year being held in cars, an asset that depreciates over time
I think the used car and current car owners would be the biggest losers because they already committed so much while the value of their vehicles dropped so much all of a sudden.
If PR really wants to ensure an orderly market adjustment of car prices, they should give subsidies for the current car owners (tiered of course which favoured those who bought relatively cheaper cars and those recently bought cars versus expensive cars and those already fully depreciated as it exceeds 10 years) to adjust to the sudden fall in prices.
Its time to put money back into consumer pocket and let them decide where and what to spend it on. Government triple tax on basic transportation need is inhumane. Why must a rakyat spend more than half of their debt on a vehicle?
Yes now with this revamp NAP,we can look forward for more and less burden on cars spare parts and aftermarkets products. These important car parts are seriously expensive..a gearbox usually the common in high price after the engine..locally or imported..
the proton preve should not cost more than 25K. if proton is afraid of going bankrupt, they have to wake up immediately, because PR will be going to Putrajaya very soon. and all the rakyat will be driving their favourite toyotas and hondas at half the price now. then we will see big FDIs from toyota and honda into this country, and the rakyat will have plenty of jobs. we want quality and affordable cars, NOT cars where we are afraid to even use the power windows when we are paying toll....just in case the window gets stuck, like it always does on my Waja...replace two times already also cannot use. now DARE NOT use
I'm thinking Proton's cars are getting more and more expensive. With RM75,000 for new Proton Preve, that is the price for one Toyota Avanza or Vios already. Which makes me think, Proton does not commit to Rakyat affordability too
Proton will survive if the right management is in charge. Slimmer profits won't kill a business but inefficiency will. It is for the better if Proton face up to the South Koreans, Japanese, Germans and China and learn how to survive.
Champions are forged in the fire of competition while losers avoid the least challenge.
Very smart move to reduce our burden and safety of the rakyat by reducing the aging cars on the road. Proton has to stand on its own instead of being a jellyfish and hiding on national car status. How long must the nation bear supporting Proton, from vendors to sales are own by cronies of UMNO.