The government has reversed its controversial move to increase the excise tax rate on certain multi-purpose vehicles.
According to the Excise Duties (Amendment) Order 2017, published in the national gazette, the excise tax rate for multipurpose vehicles (MPVs) with a cylinder capacity above 1,000cc but under 1,500cc would be reverted to 60 percent.
The order was signed by Finance Minister II Abdul Johari Ghani on April 12 and it took effect yesterday.
The government had on March 31 published in the national gazette that the excise tax on MPVs with a cylinder capacity above 1,000cc but under 1,500cc would be increased to 65 percent.
The order took effect on April 1.
According to automotive portal Paul Tan, some of the affected vehicles were Toyota Sienta, Toyota Avanza, Nissan Grand Livina, Perodua Alza and the Proton Ertiga.
The hike quickly came under criticism as the ruling coalition had pledged to reduce car prices as part of its last general election manifesto.
Following the hike, Toyota announced the price of its vehicles would go up by between RM3,310 and RM6,010.
However, Toyota called off the hikes following Putrajaya's reversal yesterday.- Mkini