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Malaysian Pay the Highest Car Prices in the World
5 January 2010 - If you shop for a new cars like Toyota Vios, Honda Civic etc, you would immediately notice that we are paying highest car prices in the world due to our abnormally high import duties on foreign cars.
Beside paying for higher price for car, soon we would also pay for higher Petrol price. By 1st May 2010, Malaysians Not all Malaysians will get to enjoy subsidized petrol as it will follow the engine capacity and other factors such as socio-economy. It another word some Malaysians will pay for Petrol at Market Price.
Car has become a necessity and no more a luxury due to the current public transport condition. There are a lot of proposal improve urban public transport and step done to further encourage the people to use public transportation. But there are still a lot of room of improvement.
Therefore Most people have not much practical choice but to own cars! As a result, we are face with traffic congestion and horrendous air-pollution. Some car owners even take a nine-year loan just to pay off for a basic car. Car also has the highest depreciation value between the first and second year and one of the biggest liability for average wage earner.
By comparing car price between Malaysian mainland and duty free Island of Langkawi, you can clearly see how much Car Vehicle Taxes the Government is extracting from the car buyer.
Malaysian mainland car buyer paid almost additional 38% compare those at duty free Island of Langkawi. The Government take about RM23,000.00 in taxes for every imported car that is sold in the country. This would add to billions of ringgit.
Most of this taxes money goes to the Government in the form of taxes and duties and also to pay for the Approved Permits(AP). AP is needed to import these cars. According to the book “Thing in Common” by Syed Akbar Ali, AP is a Useless Pieces of paper which do not add any value to the car or to the people.
They are just a method of skimming money from the people! He also wrote these taxes are being imposed to protect outdated national car industry and to benefit a few privileged people who have access to APs to import cars. Highly protectionist policy in the car industry should be reduce and without competition from freely imported cars, the car prices in Malaysia have rocketed sky high.