New NAP- National automotive Policay

[wannabe]

Saw in today's malay mail that a new NAP has been approved with effect from 20/10/05. Dont really understand wat it means. Can some one please explain a bit ? Just want to know end of the day, the imported cars will be cheaper or more expensive or remain unchanged?? Thanks.

 

[jasonchan]

Cheaper imported cars with new tax structure

BY HONG BOON HOW



KUALA LUMPUR: Imported cars are expected to be cheaper from today in line with the new tax structure for motor vehicles that lowers import and excise duties for cars from Asean as well as non-Asean regions.

In a statement, Prime Minister Datuk Seri Abdullah Ahmad Badawi said the new tax structure would further liberalise the country's automotive sector.

The formula for calculating excise duty on completely built-up (CBU) vehicles was changed based on a “tax on tax” basis.

Previously, excise duty on CBU vehicles was based on the value of cost, insurance and freight (CIF).

Under the tax on tax formula, the value of excise duties will be based on the CIF value including the import duties.

With the new structure for all passenger cars, import duties on Asean CBU vehicles will be reduced to 15% from 20%, and that on non- Asean CBUs to 30% from 50%.

The zero per cent import duties on Asean completely knocked down (CKD) passenger cars and 10% on non-Asean CKD remain unchanged.

Excise duties on CBU and CKD passenger cars between 1,800cc and 3,000cc have been reduced to 80% to100%, from 90% to 250%; and on 4WDs to 55% to 160%, from 60% to 170%.

Excise duties on motorcycles were also reduced to 20% to 50%, from 20% to 60%, while that for CKD and CBU multi-purpose vehicles from Asean and non-Asean regions have been raised to 55% to 160%, from 40% to 170%.

Although the new tax structure takes effect today, exemption will be given for goods in transit.

The statement said the classification and tax structure for diesel cars have been streamlined to that using petrol.

Auto industry executives contacted were unable to confirm if the streamlining would result in diesel vehicles becoming more expensive or cheaper.

More reports in the Business section Related Stories:
Interim measures to phase out APs
Government spells out ways to boost automotive industry
Gear shift for foreign cars
Moving towards a level playing field

 

[GOKEN]

I saw some tricks in the new tax structure. The overall prices of cars won't have much changes......

 

[wannabe]

Actually i was just hoping tat the price wont go up , dun really expect it to come down. Afraid was goin to be like those korean cars , price went up so fast.