Workers of the industry will not be affected by the move to slash hefty excise duties, says the opposition leader.
FULL REPORT
PETALING JAYA: Opposition Leader Anwar Ibrahim, in unveiling Pakatan Rakyat’s auto industry revamp plan, said today the pact will implement gradual tax reductions to protect car prices and the used-vehicle market.
The PKR de facto leader also gave his assurance that the workers of the industry will not be affected by the move to slash hefty excise duties unlike what was alleged by the proposal critics.
Detractors claimed local car-makers will likely be hurt by the move as consumers will opt for cheaper imported cars. This will in turn result in the mass retrenchment of workers as business drops.
“The abolition of excise duties and the reduction of car prices will be conducted gradually so the prices of used vehicles and existing car will depreciate slowly,” he told a press conference at the party headquarters here.
“This will be announced annually in the federal budget after taking into consideration the views of financial institutions and stakeholders.
“This is so that the depreciation value and loan assets held by financial institutions are in line with new car prices,” he added.
Pakatan’s political rivals have blasted the proposal as an election winning ploy, saying the opposition bloc will likely draft a new tax scheme to compensate the loss in government revenue generated from car taxes that is estimated to be around RM8 billion annually.
New market
Anwar dismissed the idea, saying Pakatan will introduce incentives to push for the exports of used cars to “new markets” aimed at generating a new revenue stream and at the same time slash hefty expenditures of the Prime Minster’s Department (PMD).
PKR claimed in the past that PMD’s expenses had risen sharply, with last year’s alone amounting to RM11 billion.
But no detailed study was presented to show if the new market for used cars could generate enough income to compensate for the loss in car tax collections, with Anwar merely saying that the plan “is expected” to provide new revenue flows for the government.
There is also the promise to revamp the distribution of APs (approved permits) for imported cars that he said would generate RM2 billion to RM3 billion annually until the system is abolished in 2015.
Anwar, the former deputy prime minister and finance minister, also said Pakatan will reverse the shipping policy on Sabah and Sarawak by abolishing cabotage that requires goods to be shipped domestically with only local vessels.
Freer market
Sabahans and Sarawakians currently have to pay higher prices for cars compared to their peninsular counterparts.
Anwar believes the new policy will drive the local automotive industry forward “and not just for certain quarters” and, at the same time, force local carmakers to compete with international car firms.
Incentives will be given to improve the quality of local cars besides giving “space” to local players to implement strategies with government cooperation.
Anwar said this move will create more jobs in the industry, while preserving its current workforce in a more open business environment.
He said the new auto policy will also go hand-in-hand with improving public transport to tackle traffic congestions. Incentives will also be given to players producing green cars to keep the environment clean.
Pakatan’s auto-policy has generated much interest and will likely be a crucial campaign fodder as it gears up for national polls which must be held by the middle of next year.
Anwar said that a revamped National Auto Policy (NAP) should already be in place to ensure fair competition in an industry rife with corruption and abuses.
FULL REPORT
PETALING JAYA: Opposition Leader Anwar Ibrahim, in unveiling Pakatan Rakyat’s auto industry revamp plan, said today the pact will implement gradual tax reductions to protect car prices and the used-vehicle market.The PKR de facto leader also gave his assurance that the workers of the industry will not be affected by the move to slash hefty excise duties unlike what was alleged by the proposal critics.
Detractors claimed local car-makers will likely be hurt by the move as consumers will opt for cheaper imported cars. This will in turn result in the mass retrenchment of workers as business drops.
“The abolition of excise duties and the reduction of car prices will be conducted gradually so the prices of used vehicles and existing car will depreciate slowly,” he told a press conference at the party headquarters here.
“This will be announced annually in the federal budget after taking into consideration the views of financial institutions and stakeholders.
“This is so that the depreciation value and loan assets held by financial institutions are in line with new car prices,” he added.
Pakatan’s political rivals have blasted the proposal as an election winning ploy, saying the opposition bloc will likely draft a new tax scheme to compensate the loss in government revenue generated from car taxes that is estimated to be around RM8 billion annually.
New market
Anwar dismissed the idea, saying Pakatan will introduce incentives to push for the exports of used cars to “new markets” aimed at generating a new revenue stream and at the same time slash hefty expenditures of the Prime Minster’s Department (PMD).
PKR claimed in the past that PMD’s expenses had risen sharply, with last year’s alone amounting to RM11 billion.
But no detailed study was presented to show if the new market for used cars could generate enough income to compensate for the loss in car tax collections, with Anwar merely saying that the plan “is expected” to provide new revenue flows for the government.
There is also the promise to revamp the distribution of APs (approved permits) for imported cars that he said would generate RM2 billion to RM3 billion annually until the system is abolished in 2015.
Anwar, the former deputy prime minister and finance minister, also said Pakatan will reverse the shipping policy on Sabah and Sarawak by abolishing cabotage that requires goods to be shipped domestically with only local vessels.
Freer market
Sabahans and Sarawakians currently have to pay higher prices for cars compared to their peninsular counterparts.
Anwar believes the new policy will drive the local automotive industry forward “and not just for certain quarters” and, at the same time, force local carmakers to compete with international car firms.
Incentives will be given to improve the quality of local cars besides giving “space” to local players to implement strategies with government cooperation.
Anwar said this move will create more jobs in the industry, while preserving its current workforce in a more open business environment.
He said the new auto policy will also go hand-in-hand with improving public transport to tackle traffic congestions. Incentives will also be given to players producing green cars to keep the environment clean.
Pakatan’s auto-policy has generated much interest and will likely be a crucial campaign fodder as it gears up for national polls which must be held by the middle of next year.
Anwar said that a revamped National Auto Policy (NAP) should already be in place to ensure fair competition in an industry rife with corruption and abuses.
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