Earlier this 12 months, it was reported that new excise responsibility laws put forth by the customs division would end result within the costs of locally-assembled (CKD) automobiles going up by as much as 20%. Nonetheless, that’s not the case, in keeping with Malaysian Automotive Affiliation (MAA) president Datuk Aishah Ahmad, when contacted by paultan.org.
Earlier than continuing additional, right here’s a recap of the state of affairs. Beforehand, the customs division issued the Excise (Willpower of Worth of Domestically Manufactured Items for the Function of Levying Excise Obligation) Laws 2019, which was ready by the ministry of finance (MoF) and gazetted on December 31, 2019.
Based mostly on the phrases of the brand new laws, completely-knocked-down automobiles will likely be liable to pay extra taxes attributable to a change in methodology of how the open market worth (OMV) of a car is calculated. This takes into consideration not simply the revenue and common bills incurred or accounted within the manufacture of a car, but additionally of its sale. You’ll be able to read more about it here.
Initially deliberate to come back into impact this 12 months, the transfer brought about an uproar inside the Malaysian automotive trade, ensuing within the earlier authorities to backtrack and announce a “special exemption.” This stored automobile costs as is till the tip of 2020 and was at all times believed to be a short lived reduction, with costs set to go up in 2021, albeit regularly.
Whereas excise responsibility laws will stay unchanged getting into 2021, automobile costs are set to extend come the brand new 12 months attributable to another excuse: the tip of the gross sales tax exemption (100% for CKD, 50% for CBU) underneath the federal government’s Penjana programme. As beforehand reported, there will likely be no extension of the programme, which has been in place since June 15 and can finish on December 31 this 12 months. On the very least, we gained’t face a double whammy of costs going up because of the return of gross sales tax and new OMV duties. See, it’s not all unhealthy information in 2020.