PKR proposes AP bidding system, phase-out by 2015

PKR today unveiled the second part of its proposed automotive policy by presenting a three-year phase-out of the “inequitable” approved permits (AP) system to import cars by 2015.

According to its director of strategy Rafizi Ramli (right), the plan will generate RM2.8 billion in government revenue to cushion the initial impact of a reduction in excise and vehicle sales tax, estimated to be about RM8 billion a year. 

In the three years, PKR proposes that APs be sold through a three-tier open bidding system, with the opening bids for energy-efficient cars starting at RM10,000, ordinary cars at RM20,000 and RM30,000 for high-powered cars.

“We believe that the average price for each AP can reach RM40,000 each year. At an estimated 70,000 APs per year, this will generate revenue of RM2.8 billion a year,” he said. 

[More to follow]