AP System To Be Abolished By Dec 31 2010
March 22nd, 2006 at 11:55pm tiger Category : Auto News, Malaysia
News From Bernama:
The Approved Permit (AP) system will be phased out by Dec 31, 2010, the Prime Minister’s Department has said.
The move was taken under the much awaited National Automotive Policy (NAP), which was announced, here Wednesday.
The AP system, which provides the license for local companies to import cars for distribution in the country, became a hot topic among Malaysians following allegations that the APs were being awarded to certain favoured crony companies and individuals.
The Malaysian government reduced taxes on most imported vehicles under a new auto policy announced Wednesday, saying the increased competition will make the domestic car industry resilient and viable.
Excise duty for completely built-up passenger cars from Asean countries will be 75% to 125% depending on engine capacity, the statement said, versus 80% to 200% previously.
Under NAP also cover a host of other measures including a ban on import of second hand cars by 2010, and a reduction in import duties on cars made in the Association of Southeast Asian Nations (ASEAN) member countries to 5 percent.
The National Automotive Policy announced by the prime minister’s office said the excise duty structure has been streamlined, “resulting in an overall reduction in the effective tax rate on most motor vehicles” imported and produced in the country.