PAS is predicting strong reactions from Barisan Nasional leaders following an announcement today that Pakatan Rakyat would abolish excise duties on new cars, thus drastically slashing car prices in the country.
"Don't be surprised. BN leaders will again cry out that the country would be bankrupt if excise duty is abolished," said party information chief Tuan Ibrahim Tuan Man.
After its promise to abolish higher education study loans riled up BN leaders, PR today striked right at the heart of what is likely the most popular debate among Malaysia's working adults: car prices.
PKR strategic director Rafizi Ramli revealed that serious discussions have been on-going among coalition partners to agree to do away with excise duties on new cars.
Rafizi said the move would not only see a drastic decrease in prices of new vehicles but also could reduce household debt in the form of cheaper car loans and higher disposable income.
"Personal car loans is the second biggest debt after home loans, exceeding RM134.2 billion at the end of May 2012. This is the heaviest burden for the people, as many in our country earn less than RM3,000 a month," he said.
Citing spiralling household debts based on the 'Household Income and Basic Amenities Survey Report 2009', Rafizi said the move would ease financial burden of some 72 percent of households.
Currently, Rafizi said one who is buying a RM40,000 car, the lowest priced in the market, pays RM16,000 in excise duties and sales tax. Popular cars priced near this figure include the Proton Saga BLM and Perodua MyVi.
He pointed out that the existing National Automotive Policy introduced in 2006 to counter the Asean Free Trade Agreement (AFTA) was the root cause of the increase in household debts by 14 percent or RM16 billion from RM118 billion in 2010.
Tuan Ibrahim reiterated that the plan has PAS's full support.
“All along, people have been forced to buy cars at a premium. AFTA agreement which is supposed to be enjoyed by the people, where among others vehicles should cost lower, has lost its meaning with the introduction of these excise duties,” he added.
-Harakahdaily
actually price of car not impact by fuel price in this time
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