Rafizi tells Umno not to insult Proton with racially-toned claims

PKR strategic director Rafizi Ramli said the on-going restructuring of National Automative Policy (NAP2012) by the International Trade and Industry ministry should be capitalised to set right the misperception that Proton would fail if protectionist policies were removed.

Rafizi said UMNO-BN had converted the issue into one of race by arguing that removing current taxes on new cars would lead to the demise of Proton and thus cause the majority Malay employees to lose their jobs.

Rafizi said he had taken into account Proton’s capability to stay ahead of competition when he first laid out the plan for cheaper vehicles by proposing a gradual removal of excise duty.

“PKR recognises Proton’s success and is confident that it can advance further taking into account it has managed to survive even when it has stopped getting excise duty rebate since 2005,” he said.

Rafizi pointed out that since 2005, Proton and other local car makers had been slapped with excise duty similar to foreign cars.

“The bulk of financial assistance to Proton is no longer in the form of tax protection, but research and development grants to allow it to venture into better design and technology.

"On Proton’s financial sheet ending March 31, 2011, it is stated that it received R&D grant of RM175 million,” he added.

The amount however is dwarfed by the huge rebate Proton had enjoyed prior to 2005, said Rafizi.

Rafizi described arguments bordering on race as given by UMNO as an 'insult' to professionals in Proton and other local automotive industries.

-Harakahdaily