Talkback Thursday: Do you think slashing excise duties on cars is a good or a bad thing?

On Tuesday, Rafizi Ramli the PKR strategy director said Pakatan Rakyat (PR) will offer 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 PKR leader told a press conference here that the plan, to be slotted into PR’s election manifesto for the coming 13th general election, will be used as a major campaign issue for the federal opposition as it fights for federal power.

Rafizi explained that the triple-tax burden imposed on cars — excise and import duties and sales tax — could hike the price of a car by at least 70 per cent for lower capacity cars or over 100 per cent for those with higher capacity.

As an example, he said, a 1,500cc Perodua car could cost up to RM40,000 although its actual cost was merely RM23,500 because of the 60 per cent excise duty and 10 per cent sales tax imposed on the vehicle.

“This means you would be paying an additional RM16,500 for taxes alone on the car,” he said.
He said that boosting an individual’s disposable income by simply revamping the NAP would be simpler than finding ways to increase income.