No cheaper car price after AFTA
BUSINESS TIMES Singapore
November 8, 2002
M'sians to bid for car COEs?
Dr M moots idea for offsetting revenue fall when import tariffs are cut
By Eddie Toh
In Kuala Lumpur
MALAYSIA might implement a COE system - just like Singapore's - to help make up for the fall in revenue when tariff barriers on imported automobiles come tumbling down in two years' time under the Asean Free Trade Agreement.
Malaysian Prime Minister Mahathir Mohamad said the government will find new ways to collect revenue when import tariffs are lowered to 5 per cent in 2005.
'Certificate of fitness can be introduced,' he told reporters yesterday after launching two new models of the national car, Proton. He was asked if Malaysia will introduce Certificates of Entitlement, which entitle successful bidders to own cars in the Republic.
Dr Mahathir dashed the hopes of car buyers waiting for prices to ease when import duties are slashed. 'Sorry, some people are waiting for the price to go down but it's not going to happen,' he said.
'Under Afta, we will not impose import tax that is high. But within the country, other taxes will be introduced,' he added.
He stressed that the new tax will be applied to all cars - domestically produced cars like Proton as well as imported cars.