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Hybrid incentives to go on until NAP is announced?

In Cars, Local News / by /

mustapa-miti

The much-anticipated National Automotive Policy (NAP) revision is currently yet to be tabled, but things should be finalised by year-end, according to Minister of International Trade and Industry Datuk Seri Mustapa Mohamed.

The 100% tax exemption for hybrid and electric vehicles ends on December 31, 2013, which is just a couple of weeks before the NAP announcement is supposed to be made, between January 10-15.

To a question on what would happen in the interim period, the minister said in a press conference at the ongoing KLIMS13 that “they are working on a solution.” We expect that since the timing is that close, the current exemption and prices might carry on until the new hybrid tax structures are announced in the NAP.

He also confirmed that the Goods and Services Tax (GST) announced in Budget 2014 does apply to cars. As such, the existing 10% sales tax will be abolished and replaced by GST, which will be 6% when it comes into effect in April 2015.

The exact mechanics of the tax structure have yet to be defined, Mustapa said. This could well result in new car prices coming down. By how much? Your guess is as good as ours.

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Jonathan James Tan

While most dream of the future, Jonathan Tan dreams of the past, although he's never been there. Fantasises much too often about cruising down Treacher Road (Jalan Sultan Ismail) in a Triumph Stag that actually works, and hopes this stint here will snap him back to present reality.

 

Comments

  • AI-generated Summary ✨

    Comments express skepticism about the effectiveness of hybrid incentives until the National Automotive Policy (NAP) is announced, highlighting issues with current tax policies, government delays, and high car prices due to heavy taxes and GST. Many see the NAP's promises as unfulfilled or flip-flopping, with a sentiment that taxes and car prices remain excessively high regardless of policies. There is frustration about government inefficiency and a call for consumers to wait or reduce car purchases until policies are clarified.

  • Jim on Nov 15, 2013 at 8:25 pm

    Current tax 10%, goes on to 6%GST. So mean 4% drop by the sales tax?

    Thumb up 18 Thumb down 2
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    • Pontiac on Nov 15, 2013 at 9:51 pm

      Ya la. Janji ditepati. Reduce gradually. Now 4%. Next year another 4%. Completed 5 yrs total 20%!! Janji ditepati. Not like samy vellu said janji dicapati

      Thumb up 12 Thumb down 40
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      • BadBET on Nov 15, 2013 at 10:14 pm

        yeah right, reduce sales tax a little bit but gain much more through GST. buy spare part, tyre, accessories etc will have to pay GST.
        Government will always find a way to cover the tax they reduce.

        Thumb up 48 Thumb down 11
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        • bonbon on Nov 16, 2013 at 9:47 pm

          what to do bro.. the promise was to reduce car price, not to reduce sparepart price…

          Thumb up 3 Thumb down 1
          Reply
    • kzm on Nov 16, 2013 at 8:18 am

      Boleh people same as US people..US people like to make story that destroy their country. Boleh people like to make story that tax increase…

      Thumb up 10 Thumb down 15
      Reply
    • kzm on Nov 16, 2013 at 9:19 am

      U know that GST is a good way to avoid double tax, tripple tax and so on in manufacturing process…currently sales tax for various item is bet 5-15% frm raw material to finish goods…the gst is implement to reduce that…imagine that 1 item has 5 level from raw to finish, each level have varied tax bet 5% to 15%, each tax included in sale price of each level…that how many tax is added until end customer and again tax again at final..so the actual sale price that we pay is inclusive those tax before…that mean we pay all those tax…with gst we the oni 1 who pay the tax since manuracturer/retailer claim back those other tax in their stage..so the tax will not affect selling price in production stages..this is wat gov fails to explain to people n come out with lame iklan

      Thumb up 17 Thumb down 12
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      • ae101 on Nov 16, 2013 at 11:41 am

        Your statement may true if you are jib ko. Sorry but I don’t trust the cronies business. We will see then….

        Thumb up 8 Thumb down 4
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      • QChan on Nov 16, 2013 at 7:43 pm

        KZM, I suggest you do some research on the current Sales & Service Tax (SST)and its applications.

        The Sales Tax component of SST is a single stage tax on manufactured goods and all Suppliers to the final product are eligible for tax clawback for registered suppliers. In essence, there is no double or triple taxation here.

        Generally, only the ultimate manufacturer of the finished product imposes Sales Tax. The final consumer rarely see on their bill the element of Sales Tax unless you purchase directly from the manufacturer .

        What you do see frequently is the imposition of Service Tax (e.g. restaurants bills, auto repair bills).

        I’m no tax expert – do correct if I’m wrong. TQ.

        Thumb up 6 Thumb down 0
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      • abuya123 on Nov 18, 2013 at 9:09 am

        Do you aware at R&R plus highway, at food stall, there are notice, without receipt, purchasing is free? The price comes together with sales tax right? Lets think this. You pay to cashier and dont ask for the receipt. And the cashier did not punch anything to money machine. So there is no record. At end of month, they put all profit including sales tax that shall be remit to government into their pocket. When auditor cross check at cash machine, he didn’t found this fraud. This is one example of how businessman makes money. Eat both profit and sales tax, declare low revenue so can pay low tax as well.

        What KZM says true. And bear in mind, the businessman worried and try influence and drag political issue together to people. Why they worried? Because they need to declare their total sales in order to claim tax refund. When declare total sales, company tax will be impose to them. They are really traitor to nation, and now they try very hard to make people believe, GST is double tax.

        Put in your mind, no matter BN or PR, when is come to money, both of them needed at large and will execute GST. This is not political issue. This is national traitor issue

        Thumb up 2 Thumb down 0
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    • Janji the 3rd Party on Nov 16, 2013 at 3:10 pm

      These good for nothing BN idiots really frustrate me at times:
      1) why take so long to come up with a policy which affects largely the car market?? Don’t tell me u don’t have enuf number of staff working under u … ALL MUST BE SLEEPING(inefficient)

      2) if ur gonna make an inconclusive announcement such as this, MIGHT AS WELL just shut up and not announce anything at all.

      What are all the carmakers (foreign investors) think of you as a government by now? GO FIGURE

      Thumb up 9 Thumb down 2
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  • Anti-Fuel-Price on Nov 15, 2013 at 8:37 pm

    If GST lower by 4% but later on increase 10% Excise duties!!! So? We rakyat still pay high tax. Lower cars price is a impossible, ~NOT NEED dream everyone~

    Thumb up 37 Thumb down 10
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    • kzm on Nov 16, 2013 at 7:40 am

      Who say that?

      Thumb up 7 Thumb down 8
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    • Raja Lawak on Nov 16, 2013 at 10:32 am

      Looks like Proton is the worst affected with lower 6% GST and still no hybrid car to offer under new NAP…Ha Ha Ha…Proton now thinking new tricks with MITI how to suits them and delay and excuses again aand again and again…Ha Ha Ha

      Thumb up 6 Thumb down 2
      Reply
  • Stupid MPP on Nov 15, 2013 at 9:00 pm

    Screw them…Taiwan GS300h is only 200kRM, HERE IS RM530k!!!!!!!! This Fking G is not just sucking our money but also our lives!. With all these taxes still empty one, WTF!

    Well-loved. Thumb up 75 Thumb down 10
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    • Jibbet on Nov 16, 2013 at 12:16 am

      For those that voted thumbs up..I understand your point BUT for those that voted thumbs down can you mind share WHY? I don’t understand your point, do you mean we should pay 530k to owns a 200k car – that is a massive sum of 230k (can buy a new odyssey)- your money given to those fkers that now is charging all high tax/land assessment and your daily consumption as well…you feel HAPPY??

      Thumb up 25 Thumb down 11
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    • Hiroshi on Nov 16, 2013 at 1:49 am

      Not forgot mention ,Taiwanese also have NAP system

      Thumb up 7 Thumb down 1
      Reply
  • Mrhukaka on Nov 15, 2013 at 9:26 pm

    Haha,keep well and maintain your current ride.maybe another 20 years.

    Thumb up 21 Thumb down 3
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    • sean on Nov 16, 2013 at 1:50 am

      U r FREAKING RIGHT!

      Thumb up 6 Thumb down 3
      Reply
    • _xXx_ on Nov 16, 2013 at 2:34 am

      u forgot the proposed scrap policy? Miros even said many vehicles are not road worthy after 5 years old?? How to keep for 20 years? Maybe drive without road tax and insurance…

      Thumb up 5 Thumb down 1
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      • gt4 on Nov 16, 2013 at 7:12 am

        Miros … do you believe what they saying? Compulsory here and there but later postpone!

        Thumb up 2 Thumb down 4
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        • _xXx_ on Nov 16, 2013 at 1:04 pm

          of course I won’t believe but the one who call the shot believe them then we all got the problems

          Thumb up 0 Thumb down 0
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  • presna on Nov 15, 2013 at 9:35 pm

    I really do hope the Gov doesn’t start flip-flopping on this NAP issue, as in the current policy of supporting the production of ‘green'(read: fuel efficient) cars here… provided of course there is some sort of tax exemption or discounts given to cars of this type… that would be superb….

    p.s. would be great for the Gov to speak about Euro4 intro date too, since technically it is supposed to come out in 2014 (based on the extension given to the petroleum refiners by the Gov)

    Thumb up 15 Thumb down 2
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  • zedd on Nov 15, 2013 at 9:38 pm

    Dont hope too much. Gst is to create more income for gov, not the other way

    Thumb up 28 Thumb down 5
    Reply
  • james on Nov 15, 2013 at 10:14 pm

    i already predict they will apply gst to car ahahha

    Thumb up 5 Thumb down 7
    Reply
  • GTR 2.0 on Nov 15, 2013 at 10:25 pm

    OIC…. no wonder the price for all new cars quite unreasonable. Becoz they already know they gonna need to drop the prices.. *sigh*

    Thumb up 8 Thumb down 2
    Reply
  • bob on Nov 15, 2013 at 10:47 pm

    omg, they think boleh-land is so special, the whole world have to wait for their Energy Efficient Vehicles policies…by the time they cakap besar, EEV aleady outdated, there are NOT EVEN MASS market now

    Thumb up 11 Thumb down 4
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  • Orang MY on Nov 15, 2013 at 10:54 pm

    The National Automotive Policy is taking a long time to revise. Why? Let me guess. The G is trying to protect Proton again, that millstone which has cost the country billions already. Proton is why taxes on foreign car brands are so high. Proton is what keeps Malaysians from getting decent, affordable cars. So much is wasted on Proton, this failed attempt at competing with the Japanese/Koreans (while making a few well connected insiders rich).

    Isn’t 30 years of this nonsense enough?

    Thumb up 48 Thumb down 9
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    • hohoho on Nov 15, 2013 at 11:47 pm

      Gotta wait for him to kick the bucket…

      Thumb up 9 Thumb down 4
      Reply
    • BadBET on Nov 16, 2013 at 1:48 am

      i believe that even there is no proton, our car tax will still be high, the government will just say the tax is to cover the money that flow out of the country by buying foreign cars.
      protectian? even proton or perodua cars being tax sky high. I remember a 2003 waja price at around 40k + 18k tax which total be around 60k( they still print the details at the moment, now no more).
      other example, look at the superbike price, our own modenas dont produce superbike, but the tax for big bike is high even there is no local industries to protect. I believe that proton and perodua just a scapegoat to divert people attention from the true source – TAX.

      Thumb up 17 Thumb down 2
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    • plz G on Nov 16, 2013 at 1:55 am

      accord Dr.M, Proton Existing is prevent Malaysia money overflow oversea to retain GDP, but my opinion is money flow to own pocket more then oversea

      Thumb up 15 Thumb down 4
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      • zeev on Dec 16, 2013 at 2:58 pm

        Even though I couldn’t understand 100% what you are saying, but I agree with you 100%.

        Thumb up 0 Thumb down 0
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  • rustynails on Nov 15, 2013 at 11:33 pm

    During the recently concluded KLIAC2013 conference, this MITI dude gave the lame excuse to all the foreign participants that the NAP cannot be announced because of the forthcoming X’mas/festive season. So its delayed till early 2014. Either those MITI dudes are too damn lazy or incompetent to come out with a decision – god only knows. Clearly, KLIMS2013 was boycotted by Audi,BMW,,M-Benz,Volvo,Mazda,Chevrolet,Mitsubishi, Suzuki,Kia,Renault. So,what motor show is there to see?

    Thumb up 19 Thumb down 4
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  • Painter on Nov 16, 2013 at 1:43 am

    So, what is the current tax structure like?

    My guess is
    For CBU = 10% Sales + 15% Import + 15% Excise
    For CKD = 10% Sales + 0% Import + 15% Excise
    Percentage is from basic selling price.

    Is this currently what it looks like? Correct me if I’m wrong.

    Thumb up 2 Thumb down 0
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    • kzm on Nov 16, 2013 at 7:54 am

      CBU non-ASEAN (non-FTA)= 10% sales tax, 30% import tax, excise 60-105%
      CBU ASEAN = 10% sales tax, 0% import tax, excise 60-105%
      CKD = 10% sales tax, 0% import tax, 60-105% excise tax
      Hybrid = 10% sales tax, 0% import tax, 0% excise tax

      Thumb up 15 Thumb down 3
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    • kzm on Nov 16, 2013 at 8:11 am

      Calculation

      CIF x Import duty (30%) = Import duty rate (RM)

      (CIF + Import duty (RM)) x Excise duty (60-105%) = Excise duty rate (RM)

      (CIF + Import duty (RM) + Excise duty (RM)) x Sales tax (10%) = Sales tax rate (RM)

      CIF + Import duty (RM) + Excise duty (RM) + Sales tax (RM) = car cost with tax

      Car cost with tax + dealer margin = Sales price (not on the road)

      Thumb up 8 Thumb down 0
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    • _xXx_ on Nov 16, 2013 at 1:08 pm

      I actually dun really care about all these taxes on CBUs which are open and tranparent. What bothering me is the invisible and variable one. Get me?

      Thumb up 2 Thumb down 1
      Reply
  • Car duty on Nov 16, 2013 at 12:00 am

    Remember gov has collected RM30.2 billion from 2007 to 2011 car duty and gov just removed the sugar subsidy and save RM551.25 million annually. You do the math, it is unlikely gov will reduce the tax which is their big pocket money? Most likely the promise is flip-flop again.

    Thumb up 7 Thumb down 3
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  • car buyer on Nov 16, 2013 at 8:26 am

    so why both CBU Mazda Biante and Nissan Serena just a few thousand different ? suppose the hybrid thing 0% import tax compare to Mazda, but lagi mahal

    Thumb up 1 Thumb down 0
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    • drMpower on Nov 16, 2013 at 12:19 pm

      so blame bermaz and Tan Chong.

      the car without that tax, cant be that price compare outside.

      dealers are reaping u off at and government takes all the blame

      Thumb up 4 Thumb down 1
      Reply
  • Segaraga on Nov 16, 2013 at 8:37 am

    After GE 13 result, a bunch of idiots complained to Obama about the unfair results. This time , why don’t you all complain about the high car prices?

    Thumb up 7 Thumb down 6
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  • zack on Nov 16, 2013 at 8:55 am

    Since we are living in high tax regime, lower down your desire buy buying a car which is less than your annual income, maintain it until you finish your loan. You pay less tax and bank interest. Stop showing off!! Save money on something else, eg. insurance and investment. I’ve done it in the last 8 years and it worth every penny.

    Thumb up 22 Thumb down 1
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  • GST help? on Nov 16, 2013 at 11:13 am

    guys how you look into GST 6%? As i know the tax via “Good” means parts? How it affect CKD cars? eg: car parts (tyre, absorber, brake pad…) also get tax 6%? How about if CBU also will get tax base on parts or whole car?
    I think gov will announce car tax reduce for 2015 budget (janji ditepati) and IF the GST 6% apply as i said tax by parts, will the car price increase or drop?

    Thumb up 2 Thumb down 0
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  • Alex Chan on Nov 16, 2013 at 11:58 am

    i agreed with zack. let us stop the buying for at least 1 year and see hor its effect the gov.

    many people i knew (from the oposition & ruling party) always complain car tax is very high, gov not sincere in helping rakyat…but love to change cars..once in 3-4 years..then complain again car tax high..

    i personally feels that the tax being imposed to us is too much. i have finished paid my car for 4 years now, im no more tied to any car loan since that. i will not buy new car anymore. I will use my current car untill it cant be use anymore.

    enough is enough, i have a choice, why shud i gave my hard earn money to the gov? (tax) and why shud i gave my hard earn money to the bank? (Interest rate..7-8-9 years..easy money).

    Dont be fooled…the total car price you paid is not what they advertise (unless u paid cash for the car).
    u must add the interest for the years u serve the loan. Thats is how much u actually paid…

    Thumb up 13 Thumb down 0
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  • rickyll on Nov 16, 2013 at 12:21 pm

    Whatever policy coming out, the rakyat are still at the receiving end. The BN government is not going the lower the taxes on cars. If you click into a China auto websites, the top of the range new Toyata Vios is only selling at below RM60K (RMB 112K to be exact) and it comes with 4 airbags and a sunroof. We used to laugh at China, being a backward communist country,ruled by an autocratic regime and producer of inferior products, yet its auto policy seemed to favour its people more. At the end of the day, who is going to have the last laugh?

    Thumb up 13 Thumb down 1
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  • patr on Nov 16, 2013 at 2:13 pm

    Decrease in taxes, duties, car prices..??
    Not while the stone still has blood to be squeezed.

    Thumb up 2 Thumb down 1
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  • Cars on Nov 16, 2013 at 3:36 pm

    What gomen gave impression to us at 2015 seems Rakyat will get benefit by -10% Sales Tax but +6 GST on car. But by the time, car pre-production cost already increased to superb level with 6% GST to all suppliers and part manufacturers of all levels in the country. Just imagine how much is the car by then +6% GST?

    Thumb up 3 Thumb down 0
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