2005 Auto Tax Policy

[chenchow]

With the 2005 Auto Tax Policy is being implemented, tariff for cars have been greatly changed or rather restructured.

ASEAN Cars:
Import Tax: Currently: 70-190% (New Tax: 20%)
Excise Duty: Currently: 60-100% (New Tax: 90-250%)
Total Taxes: Currently: 130-290% (New Tax: 110-270%)

Non ASEAN Cars:
Import Tax: Currently: 80-200% (New Tax: 30-50%)
Excise Duty: Currently: 60-100% (New Tax: 90-250%)
Total Taxes: Currently: 140-300% (New Tax: 120-300%)

So, on average, there will be 20% less taxes for ASEAN cars whereas there is not much apparent changes in taxes for non-ASEAN cars.

National Cars:
Excise Duty: Currently: 30-50% (New Tax: 45-125%)

So, there would be an increase of 15-75% of taxes for national cars.

The actual % of taxes would depend on the actual engine, like 1.3, 1.5, 1.6, 1.8 etc.

What do you guys think?

[el_empty]

i think the government is not committed in introducing competition to the domestic market.

[chenchow]

I personally would hope for more efforts done by Government towards making local automobile more competitive.

Right now, I would say that we are moving into the right direction, but the efforts need to be intensified. Government is targeting 2008 as the year to remove all assistance to national cars.

Currently, the differences between local and ASEAN cars taxes are: 100-240% and for the year of 2005, this difference is cut towards 65-145%, which is an improvement of about 35% from the original ones.

Perhaps this gradual relaxation of assitance to national cars could push to increase their competitiveness.

I personally would hope that the difference in taxes between local cars and imported ones could reduce somewhat along those lines, which would give Malaysia a good chance to reach the target in 2008. The current taxes tariff would give pretty great challenges for Proton Perdana, as the margin of tax difference is reduced pretty significantly:-
(2004) 100-240%
(2005) 65-145%
(2006) 30-70%
(2007) 10-30%

[el_empty]

Government is targeting 2008 as the year to remove all assistance to national cars.


sorry for being your detractor, chenchow, but the last time i heard the gov targetted 2005, and then pulled back on their word.

[pandaboy]

Government is targeting 2008 as the year to remove all assistance to national cars.


sorry for being your detractor, chenchow, but the last time i heard the gov targetted 2005, and then pulled back on their word.

Probably they are waiting for the world oil reserves to finish first? LOL... No one will use a car then..

[chenchow]

The target that the government set is 20% import tax for the year of 2005, which will be in compliance with AFTA and the 2nd stage target is 5% import tax for the year of 2008.

So, we are within the target.