Car vendors and dealers call for tax
incentives
PETALING JAYA: With the automotive industry's cry for the
energy-efficient vehicles (EEV) tax exemption period to be extended pacified,
industry players are now shifting their hope on other incentives in Budget 2013
to encourage a more competitive business environment.
Among Perodua managing
director Datuk Aminar Rashid Salleh's recommendations for Budget 2013 were soft loans or grants or tax
exemptions for local car vendors to assist them in becoming world class
manufacturers.
“In addition, we hope that the Government will give incentives to car
vendors and dealers for training both domestically and abroad either via joint
ventures or partners to up skill their workers,” he told
StarBiz.
Aminar believed this was needed for the vendors to be globally
competitive in terms of productivity, quality, delivery and cost competitiveness
to survive full liberalisation of the automotive industry.
To reduce foreign labour employment, he also suggested a special fund
allocation or incentives to OEMs for the purpose of training school leavers to
help fill the need for semi-skilled labour, especially at the vendor
level.
“We (further) implore the Government to have certification programmes
and quality standards introduced to ensure that the workmen are properly trained
and the consumers are assured of competent workmanship,” Aminar said of staff at the after-sales service centres and body and
paint outlets. He believed that the industry and consumers would benefit from
standardised service from independent centres.
On the industry's effect on the economy, Aminar also recommended the
Government “considers giving sales tax exemptions for first-time car buyers of
national cars to allow a greater number of Malaysians to own a vehicle as the
incentive would help buffer any shortfall in the economy next year due to
external factors.”
“We also implore the Government to initiate an end-of-life policy for
aging vehicles to further enhance road safety while, at the same time, stimulate
economic growth,” he said, adding that the Government should ideally engage
relevant stakeholders, such as consumer associations, auto manufacturers and
finance companies, to ensure that the policy was well
balanced.
On corporate tax, a point brought up by in other sectors as well,
Aminar said: “We also request that the Government consider the reduction of
corporate tax to offset the increase in cost to all industries, especially with
the introduction of minimum wage next year.” He said the reduction in corporate
tax would go a long way in helping businesses adopt the rising cost of doing
business without having to raise its product or service
prices.
Malaysian Automotive Association (MAA) president
Datuk Aishah Ahmad said since the Government had extended the duties exemption on
hybrid cars below 2,000cc until end-2013, “we are hoping that the 2,000cc and
above EEVs could enjoy the same benefits.”
“It would be good if the Government also considers reducing duties on
motor vehicles which now range between 65% and 105%,” she
said.
Edaran
Tan Chong Sdn Bhd executive
director Datuk Ang Bon Beng pointed out that as the automotive industry had been reported to
contribute 6% to 8% to the gross domestic product by year 2020 from the current
2.4%, Tan Chong hoped that the Government would take on gradual structural
changes for the industry.
“We hope to see changes to some structural issues to boost the growth
of the auto industry,” he said, “Nevertheless; we expect the government to adopt
gradual, instead of drastic liberalization, to ensure market
stability.”
He also noted that auto players as well as MAA have submitted various
proposals to the government under the National Automotive Policy review which
will be revealed soon.
The star, September 13, 2012
Source : The Star
Date : 13 September 2012
afternoon highlight (13/09/12/158/633)
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