Yesterday, Paul Tan’s Automotive News, a Malaysia popular automotive website revealed that the government has increased the excise duty on budget MPV by 5% to 65%. The vehicles that are affected by this increase of excise duty include Honda BR-V, Toyota Sienta, Toyota Avanza, Perodua Alza and Proton Ertiga.
It is anticipated that car manufacturers will pass on this increase in excise duty to customers and this would lead to more expensive car prices.
BN’s move to increase excise duty on budget MPV is a betrayal of their GE-13 manifesto to reduce car prices by 30%. Since 2013, car manufacturers have hike car prices at least twice due to the falling Ringgit. BN not only failed to formulate any policy to reduce car prices, they also failed miserably to neutralize the effect of depreciating Ringgit that lead to car price hike.
Budget MPV is now one of Malaysian’s favorite car segment as the SUV-styled seven-seater cater to the needs of a small family. I urge BN to withdraw the increase in excise duty on budget MPV with immediate effect.
I also call on BN to fulfil their GE-13 manifesto to reduce car prices by 30%, failure in which BN will be booted out by the people in the next general election.
Media Statement by DAP Perak Economic Development Bureau Chief and Political Secretary to MP Taiping, Chong Zhemin on 8 April 2017