Reduce vehicle import duty, Gerakan Youth urges gov’t

Following Geely Automobile Holdings Ltd's acquisition of 49.9 percent stake in Proton Holdings Bhd, Gerakan Youth chief Tan Keng Liang calls for the government to reduce car import duty.

This is because, Tan said, Proton is no longer the national carmaker.

"Let's be clear on this. Proton is no longer a national car after the sale to China's Geely. No basis to accord it any national car privilege," he said in a Twitter posting today.

"After (the) sale of Proton to China, I think next step is to reduce car import duty. No longer any need to protect Proton. Cheaper cars for Malaysians," Tan added.

DRB-Hicom Bhd announced today that it has sold a 49.9 percent stake in Proton to Geely. Geely will also acquire a 51 percent stake held by Proton Holdings in British luxury carmaker Group Lotus Plc.

Both parties are expected to sign a Definitive Agreement in July.

DRB-Hicom, a government-linked company controlled by tycoon Syed Mokhtar al-Bukhary, had been instructed to find a strategic partner for Proton Holdings as part of a condition for a RM1.5 billion softloan last year.

Geely Holdings, one of China's leading carmakers, owns the Volvo Car Corporation and The London Taxi Company.

It was reported in 2015 that Malaysia's imported cars were second most expensive cars in the world, after Singapore, due to the expensive import duty.

In 2015, the government said the 30 percent import duty on sensitive automotive products, such as completely built-up (CBU) vehicles, would be abolished within 12 years.

According to the website of the Malaysian Automotive Association, no import duty is imposed on vehicles imported from Asean countries but a 30 percent import duty will be applied to vehicles imported from outside the Asean countries.

These vehicles will also be subjected to excise duties of between 75 percent and 105 percent, depending on the engine capacity.- Mkini