“On excise duties, the position of the government is as follows. “The auto sector is a very important contributor to the government’s coffers – 75% of the duties collected from the auto sector comes from excise duties,” he said. Last year, we were estimated to have collected RM480 million in the form of import taxes, because as I said, from ASEAN was (subject to) zero percent, while from many countries taxes are low, and hybrid is also zero tax, therefore taxes we collected in the form of import duty are small.” “I’m just sharing with you why it is not possible for us now, under present circumstances, to consider reviewing some of these taxes. According to Mustapa, the average excise duty being paid per car is about 50%. However, MITI minister Datuk Seri Mustapa Mohamed said that the government is constantly reviewing its fiscal position and is open to the possibility of reducing excise duties when the fiscal situation permits it.Įxcise duties currently stand at about 65% to 105%, however many car manufacturers pay much less than that thanks to the various mechanisms in place in exchange for car localisation. The government’s stance on excise duties were made clear today at the National Automotive Policy (NAP 2014) announcement – its current fiscal position benefits from the revenue obtained from charging excise duties, so excise duties are to stay.
