GOVT IDENTIFYING METHODS TO MINIMISE LOCAL VEHICLE PRICE HIKES - LIM HUI YING

KUALA LUMPUR, Nov 6 (Bernama) -- The government is identifying the best methods to mitigate the implications of the increase in local vehicle prices in line with the enforcement of regulation P.U.(A) 402/2019, said Deputy Finance Minister Lim Hui Ying.

Regulation P.U.(A) 402/2019 refers to Excise Regulations (Determination of the value of locally manufactured goods for the purpose of imposing excise duty). 

She said the government would take mitigation measures to minimise the impact on the people.

“The government has collected data and held engagement sessions with the industry to obtain views and solutions to the issues that arise," she said during a question-and-answer session at the Dewan Rakyat today.

She said that at this point, the exemption from the implementation of the P.U.(A) 402/2019 regulation is given exclusively to manufacturers for locally assembled vehicles (CKD) only.

“This exemption was decided following concerns from the local automotive industry regarding the sudden increase in vehicle prices as a result of the enforcement of the regulation and to enable the industry to prepare for the implementation of the P.U.(A) 402/2019 regulation later,” she said.

However, Lim said that regarding the impact of the implementation of this regulation on the increase in prices, it is still uncertain since the business models of local vehicle assembly companies are different from each other, causing inconsistencies in the imposition of excise duty on manufactured vehicles.

-- BERNAMA