The government has no plan to review the tax structure and excise tax on the auto industry – Tengku Zafrul
According to Minister of International Trade and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz, the government does not plan to review the tax structure for the auto industry, especially the excise tax because it is important to the economy. with industry development.
He explained that it is important to maintain the current excise tax rate, as it plays an important role in promoting activities such as CKD assembly programs in the country and development. suppliers, as well as Bernama report. “This is to encourage local suppliers to participate in the development of the auto industry,” he said during a Q&A session in Dewan Rakyat earlier today.
Tengku Zafrul, who is answering additional questions from Datuk Seri Wee Ka Siong (BN-Ayer Hitam), said the government has offered tax incentives in the form of exemption or reduction of excise tax for assembly. local authorities as well as exempt or reduce import tax on components imported into the country for CKD programs.
He said that the rate or level of incentives offered depends on the value of the business plan and they include items such as investment amount, supplier development, technology transfer and export plan. export.
He added that automotive products such as imported complete units (CBU) and CKD as well as imported components now enjoy much lower import tax rates, even up to 0%, under the Trade Agreement. ASEAN goods.
For additional questions from Azahari Hasan (PN-Padang Rengas), Tengku Zafrul said the excise tax on affordable vehicles, especially cars under RM50,000, is as low as 2% up to 5%, compared to between 60% and 110.% for luxury cars.
He explained that vehicle prices are not controlled by the government but are influenced by market forces and associated costs, such as the cost of components and the technology used, transportation and logistics as well as insurance. “We expect that with technological advancements, auto prices will fall along with higher demand in the future,” he added.
