Storify Feed Feedburner Facebook Twitter Flickr Youtube

ROS Lboard

Cheaper cars under Pakatan

 | July 24, 2012

Rafizi says the coalition will phase out excise duties on cars if it gets to Putrajaya.

FULL REPORT

PETALING JAYA: Cars prices will go down if Pakatan Rakyat takes over the federal government, PKR strategic director Rafizi Ramli said today.

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

Citing the Statistics Department’s Household and Basic Amenities Survey Report 2009, he said 53% of Malaysian households earn less than RM3,000 a month.

“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.


Comments

Readers are required to have a valid Facebook account to comment on this story. We welcome your opinions to allow a healthy debate. We want our readers to be responsible while commenting and to consider how their views could be received by others. Please be polite and do not use swear words or crude or sexual language or defamatory words. FMT also holds the right to remove comments that violate the letter or spirit of the general commenting rules.

The views expressed in the contents are those of our users and do not necessarily reflect the views of FMT.

Comments