Ministry to ask for tax exemption on child car seats

PUTRAJAYA: The Transport Ministry will request the government that tax exemption be given for import duty and Goods and Services Tax for child car seats.
Deputy Transport Minister Datuk Abdul Aziz Kaprawi (pix) said, the tax exemption request for the child restraining system (CRS) are among the Budget 2017 wishlist by the ministry to be submitted to the Finance Ministry before the tabling of the budget next month.
"We want to make child car seats affordable to parents as we realise that cost is part of the reason why they are reluctant to purchase and install it in their vehicle," he told theSun.
"We hope our proposal will be accepted by the government," Aziz said.
Currently, child car seats are being imposed with GST together with import tax duty of up to 30%. The item is categorised as car accessories under HS 9401.2 coding by Customs Department. However, not all imported child seats are imposed with the high tax structure.
"For example, if we sourced it from China, there won't be any import tax duty due to Asean Free Trade Agreement (Afta). But if it's non-Afta deal, it is 30% tax duty," said a local supplier in Klang Valley.
Road Safety Department director-general Datuk Arifin Che Mat said most R44-certified child seats available in the market are imported items.
He added that they have been in contact with local distributors and car manufacturers over the past few months on how they can reduce the price for the child car seats.
It is learned that the Transport Ministry will embark on a year-long safety campaign by end of November to encourage parents to install the Child Restraining System (CRS) ahead of the ministry's plan to regulate it by 2019.