Abolish RM10,000 levy on imported reconditioned cars call

KUALA LUMPUR: Approved permit (AP) holders want the RM10,000 levy imposed on each reconditioned vehicle imported since 2010 to be scrapped.

The Malaysian Reserve quoted Malaysian Association of Malay Vehicle Importers and Traders (Pekema) president Zainuddin Abd Rahman as saying: “It’s unfair for us to pay while the franchise holders are not subjected to the RM10,000 levy for their completely built-up cars.”

Zainuddin said the RM10,000 additional tax was a burden on AP holders, who, he reminded the governnent, were Bumiputera entrepreneurs. The burden was being felt more now due to the current slowdown in car sales, he said.

He added that AP holders had paid RM2 billion in this levy to the government since it was implemented.

Recently, Prime Minister Najib Razak said the government would wait for proposals from the International Trade and Industry Ministry and the Finance Ministry to revise the AP system.

Open AP holders are allowed to import vehicles, a majority of them luxury reconditioned or secondhand vehicles from abroad, and sold in Malaysia.

Zainuddin told The Malaysian Reserve the current economic situation had forced Pekema members to import only about 14,000 vehicles last year, less than half of the 35,000 vehicles allowed by the government.

The AP holders allocation is 6% of the country’s total industry volume.

“Based on the current situation, it is better for us not to bring in any car. The RM10,000 levy affects our income and cars’ pricing,” Zainuddin was quoted as saying.

Meanwhile, franchise holder Mercedes-Benz Malaysia president and CEO Dr Claus Weidner was quoted as saying: “Any move that promotes a healthy automotive sector and a fair, level playing field is a positive one.

“We’ll continue to look forward to policies and incentives that will further spur growth of the local automotive industry.”