Pekema urges government to abolish AP levy

The Malaysian Association of Malay Vehicle Importers and Traders (Pekema) has urged the government to consider abolishing the RM10,000 levy imposed on approved permit (AP) holders.

Pekema president Datuk Zainuddin Abdul Rahman said abolishment of the levy and reduction of excise duty would provide the opportunity for ordinary folk to buy imported cars at a cheaper rate.

"If the levy is abolished, the price of imported cars will go down and at the same time, Pekema will bring in high quality cars," he told Bernama.

In this regard, he hoped Budget 2015 to be tabled next week would decide in Pekema's favour.

Zainuddin said although local financial institutions provide a flexible car loan repayment period of up to nine years to allow the people to easily own cars, it was still a hefty debt for the common household in the long run.

"Based on the Financial Stability and Payment Systems Report 2013 released by Bank Negara Malaysia, car loans contributed to 20 percent of the total household debt," he said.

Meanwhile, National Consumer Complaints Centre (NCCC), board of trustees member Muhammad Sha'ani Abdullah said the board anticipated a drop in vehicle prices once the goods and services tax (GST) is enforced in April next year.

"Currently the sales and services tax (SST) is 10 percent, but the GST will only be six percent," he noted.

However, he said the government does not determine vehicle prices, which is still dictated by the automotive manufacturers.

"Through the GST we do expect a shift in the price of vehicles, unless the government introduces other duties to maintain the prevailing rate," he added.