MAA: Value of CKD automobiles might improve by 8-20% subsequent yr

KUALA LUMPUR: The worth of regionally assembled fully knocked-down (CKD) automobiles is predicted to extend by eight to twenty per cent subsequent yr, primarily based on the brand new open market worth (OMV) excise obligation calculation technique.

Malaysian Automotive Affiliation president Datuk Aishah Ahmad stated nonetheless, the business has requested the federal government to revert to the earlier calculation methodology to keep away from a rise in CKD automobile costs.

“The implementation of the excise obligation was postponed in 2020 to end-2022, and shall be enforced beginning subsequent yr.

“We (MAA) have already submitted a proposal to the Finance Ministry (MoF) to revert to the earlier coverage which didn’t embody non-manufacturing-related prices in calculating the OMV, thus reducing the automobile costs,” she stated to reporters after chairing the MAA’s annual common assembly as we speak.

Nonetheless, she stated the affiliation has but to obtain any reply from the ministry.

The brand new Malaysian excise obligation association was ready by the MoF in the course of the Pakatan Harapan administration and was gazetted on Dec 31, 2019.

Aishah stated the OMV is the ultimate market worth set for CKD automobiles recent out of the manufacturing unit, earlier than the addition of the excise obligation.

She emphasised that automotive firms wouldn’t be growing their margins, and that the rise in automobile costs could be as a result of improve in taxes.

“Patrons would be the ones affected by this transfer, and this, in flip, will trigger automobile gross sales to drop,” she stated.

In the meantime, Aishah stated the MAA can be drafting an attraction to the MoF to additional prolong the gross sales and providers tax (SST) exemption interval for brand spanking new automobiles, in gentle of the microchip scarcity challenge.

Beforehand, the federal government had prolonged the SST exemption interval for brand spanking new automobiles to June 30, 2022, beneath Funds 2022. – Bernama


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