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Thursday, January 01, 2004  

I think we have been waiting for some time on this. Perhaps this will enlighten us on the Price War.. Let the Battle Begin!!!


Vehicles up to 1,800cc may be cheaper (The Star)

PETALING JAYA: Smaller imported passenger cars – those below 1,800cc – may see a slight drop in prices following the Government’s announcement of new import taxes as required under the Asean Free Trade Area (Afta) agreement.

However, the cost of national cars may also go up because the Government also announced new excise duties for all motor vehicles.

Prime Minister Datuk Seri Abdullah Ahmad Badawi made the announcement, which has been eagerly awaited by those in the motor industry as well as car buyers, in a statement yesterday.

However, many in the car industry found the announcement unsurprising and warned that any price reduction would depend on other factors.

“These include the charges by local assembly plants, the charges imposed by the car company headquarters on the kits and the willingness of local companies to accept lower profits,” said an industry insider.

Abdullah, who is Finance Minister, announced that the Government had reduced the import duty for completely knocked-down (CKD) passenger cars imported from Asean countries to 25% for all engine capacities (see chart).

It is the imposition of excise duties across the board that may cause the increase of prices for the Protons and Peroduas.

Previously, the national cars paid half of the 55% excise duty. It was learnt that the national cars would still be given a concession of 50% of the new duty of 60%.

CAR PRICE

Perodua managing director Tan Sri Ab. Rahman Omar said: “Based on the current exemption of excise duties (that Perodua enjoys) which expires at the end of 2004, we do not see why we have to change our car prices.’’

The Prime Minister said the intention to review the structure of import and excise duties on motor vehicles had been announced during the tabling of the 2004 Budget.

In order to mitigate the revenue loss as a result of import duty reduction, he said excise duty would be imposed on all categories of imported vehicles of both CKD and CBU units.

Currently, only vehicles that are assembled locally are subject to excise duty.

Abdullah said Malaysia has no commitment to reduce import duty for vehicles imported from non-Asean countries.

posted by asam | 10:04 AM
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