Deputy Finance Minister says government is identifying mitigation measures for local vehicle price hikes under new excise duty regulations.
KUALA LUMPUR: The government is identifying the best methods to mitigate implications of local vehicle price increases following enforcement of regulation P.U.(A) 402/2019.
Deputy Finance Minister Lim Hui Ying said the government would take mitigation measures to minimise the impact on the people.
“The government has collected data and held engagement sessions with the industry to obtain views and solutions to the issues that arise,” she said during a question-and-answer session at the Dewan Rakyat.
Regulation P.U.(A) 402/2019 refers to Excise Regulations (Determination of the value of locally manufactured goods for the purpose of imposing excise duty).
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She said exemption from implementation of the regulation is currently given exclusively to manufacturers for locally assembled vehicles only.
“This exemption was decided following concerns from the local automotive industry regarding the sudden increase in vehicle prices,” she said.
Lim noted the impact on vehicle prices remains uncertain since business models of local assembly companies differ significantly.
These differences cause inconsistencies in the imposition of excise duty on manufactured vehicles across the industry.
The exemption allows the automotive industry to prepare for full implementation of the regulation at a later date. – Bernama
