The Malaysian Automotive Association (MAA) says it has submitted another letter asking the government to reconsider the association’s appeal regarding the revised open market value (OMV) calculation for excise duty, which was prepared by the ministry of finance (MoF) and gazetted on December 31, 2019.
Originally planned to come into effect in 2020, the new structure has not been implemented, although it remains a matter of when rather than if. The association has been continuing to ask for its introduction to be delayed, stating that the new excise duty calculations could further increase CKD car prices if it is enforced next year.
Its president, Datuk Aishah Ahmad, said that MAA was still waiting for a reply from the finance ministry (MOF) regarding OMV. She added that the association has had talks with the customs department over the matter.
“MAA has held discussions with the customs department, and they have indicated that they will support for the OMV calculation method not to be revised,” she said last week during the MAA briefing on the performance of the automotive market for the first half of 2022. “So, we are still waiting for the official approval letter from MOF. They (MOF) are still looking at this matter but I expect there to be positive signs,” she added.
Previously, Aishah had said that given the current economic climate, any additional price increase would burden consumers and affect the competitiveness of the local automotive market.
Based on the terms of the new regulations, completely-knocked-down vehicles will be liable to pay more taxes due to a change in methodology of how the OMV of a vehicle is calculated. This takes into account not just the profit and general expenses incurred or accounted in the manufacture of a vehicle, but also of its sale. You can read more about it here.
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