June 21, 2024

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

The governing administration has no ideas to overview the tax structure for the automotive sector, in particular that of excise duty for the reason that it is crucial for the industry’s advancement, according to minister of international trade and business Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

He discussed that keeping the present stage of excise obligation was critical, since it performs a important purpose in spurring actions these types of as neighborhood CKD assembly (CKD) programmes and vendor development, as Bernama reports. “This is intended to stimulate neighborhood suppliers to participate in the development of the automotive industry,” he stated through the query-and-respond to session in the Dewan Rakyat previously now.

Tengku Zafrul, who was responding to a supplementary problem from Datuk Seri Wee Ka Siong (BN-Ayer Hitam), said the authorities was by now giving tax incentives in the form of exemptions or reductions in excise obligation for regional assembly as nicely as an exemption or reduction in import obligation for factors brought into the country for CKD programmes.

He mentioned that the level or level of incentives provided is dependent on the merits of a company program, and these include objects such as the amount of money of expense, vendor progress, engineering transfer and export programs.

He added that automotive goods these kinds of as entirely constructed-up (CBU) and CKD vehicles as properly as imported elements presently enjoy considerably lessen charges of import responsibility, even up to %, beneath the Asean Trade in Products Agreement.

To a supplementary dilemma from Azahari Hasan (PN-Padang Rengas), Tengku Zafrul mentioned the excise responsibility for affordable motor vehicles, especially automobiles underneath RM50,000, was lower at amongst 2% and 5%, in contrast to premiums of concerning 60% and 110% for luxury autos.

He defined that automobile prices are not managed by the authorities but influenced by current market forces and linked costs, such as that of components and technological innovation utilised, transportation and logistics as well as insurance plan. “We hope that with technological enhancements, motor vehicle selling prices will fall alongside with increased need in the foreseeable future,” he included.

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