Rafizi says the coalition will phase out excise duties on cars if it gets to Putrajaya.
Pakatan would review the National Automative Policy (NAP) towards reducing the market price of cars, he told a press conference at PKR headquarters here.
“We will work on a mechanism for this and include it in the Pakatan Rakyat manifesto for the general election,” he said.
High taxation is the reason why cars are so expensive in Malaysia. Currently, according to Rafizi, Malaysians pay 70% in taxes when they buy locally-made cars of below 1,500cc.
“Buyers end up paying almost RM16,500 in excise duties and sales tax for a car worth RM40,000,” he said.
“On top of that, car owners also pay about 4% in interest for the loan.”
According to his estimation, a typical car owner in Malaysia pays nearly RM600 a month towards settling his car loan. Toll charges and the cost of petrol would take up another RM400 of his monthly income.
Rafizi said Pakatan would phase out excise duties on cars to reduce household debt and increase disposable income.
“Even a novice will understand that the impact of increasing disposable income is something like increasing their pay. It’s easier to achieve than having projects under the Economic Transformation Plan (ETP) as the latter depends on external factors.”
High car instalments
“The report also shows that 71.9% of Malaysians own a car,” he said.
“High car instalments have become one of the reasons Malaysians are burdened with huge debt.”
As of May 2012, car loans repayment ranked second highest in household debt, standing at a staggering RM134 billion, he added.
“Car ownership has become a necessity to Malaysians due to the government’s lackadaisical attitude in improving the public transport system,” said Rafizi.
He conceded that BN leaders would accuse Pakatan of introducing populist policies.
“They will accuse us of being populist, but a few months later, they will copy our policy. Let’s see how they will reduce car prices,” he said.