MAA: Value of CKD vehicles might enhance subsequent yr

PETALING JAYA: The value of domestically assembled completely-knocked-down (CKD) vehicles is predicted to extend by 8% to twenty% subsequent yr, primarily based on the brand new open market worth (OMV) excise obligation calculation technique.

Malaysian Automotive Affiliation (MAA) president Datuk Aishah Ahmad stated the business has requested the federal government to revert to the earlier calculation methodology to keep away from a rise in CKD automotive 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 embrace non-manufacturing-related prices in calculating the OMV, thus reducing the automotive costs,” she stated to reporters after chairing the MAA’s annual basic assembly yesterday.

Nonetheless, she stated the affiliation had 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 was the ultimate market worth set for CKD automobiles contemporary out of the manufacturing unit, earlier than the addition of the excise obligation.

She emphasised that automotive corporations wouldn’t be growing their margins, and that the rise in automotive costs can be because of the enhance in taxes.

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

In the meantime, Aishah stated the MAA was additionally drafting an enchantment to the MoF to additional lengthen the sale and providers tax (SST) exemption interval for brand spanking new automobiles, in mild of the microchip scarcity concern.

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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