NO Planned Car Price Hike, Says Malaysia’s Finance Minister

Malaysian Finance Minister, Lim Guan Eng, has denied that car prices in Malaysia are set to soar as the Government here has yet to agree on the restructuring of import tax.

The rumour mill has been in full force in Malaysia but a planned increase in the import tariff for all imported cars; this includes Complete Built-Up (CBU) cars and Complete Knock Down (CKD) units. Figures as high as 25% increase have been bandied about as a result of an increase in the tax for CBUs and a rolling back of tax breaks for locally assembled CKDs. Word was that the increase would come into effect on June 1st of this year

Lim Guan Eng made the announcement on Tuesday after speaking at a public event. He urged the public to ignore the speculation in the market and await a government announcement, which will be made after discussions and in compliance with the country’s obligations to the World Trade Organisation (WTO).

However, when pushed by reporters, the government minister did admit that the Ministry of Finance and the Ministry of International Trade (the body that sets car prices in Malaysia) are indeed in talks to determine the revised rates for excise duty for locally assembled cars or CKDs.

So, it would seem there is to be a price hike but at this time no one knows by how much nor when it will come into effect.

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