Earlier this 12 months, it was reported that new excise obligation rules put forth by the customs division would outcome within the costs of locally-assembled (CKD) automobiles going up by as a lot as 20%. Nevertheless, that’s now 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 scenario. Beforehand, the customs division issued the Excise (Willpower of Worth of Regionally 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.
Primarily based on the phrases of the brand new rules, completely-knocked-down automobiles can be liable to pay extra taxes resulting from a change in methodology of how the open market worth (OMV) of a automobile is calculated. This takes under consideration not simply the revenue and basic bills incurred or accounted within the manufacture of a automobile, but in addition of its sale. You may learn extra about it right here.
Initially deliberate to return into impact this 12 months, the transfer precipitated an uproar throughout the Malaysian automotive business, ensuing within the earlier authorities to backtrack and announce a “particular exemption.” This saved automotive costs as is till the top of 2020 and was all the time believed to be a brief aid, with costs set to go up in 2021, albeit regularly.
Whereas excise obligation rules will stay unchanged coming into 2021, automotive costs are set to extend come the brand new 12 months resulting from another excuse: the top of the gross sales tax exemption (100% for CKD, 50% for CBU) beneath the federal government’s Penjana programme. As beforehand reported, there can 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 as a result of return of gross sales tax and new OMV duties. See, it’s not all dangerous information in 2020.
