The Malaysian Automobile Association (MAA) says it has submitted another letter asking the government to reconsider the association’s appeal over the revised Open Market Value (OMV) calculation for excise duty , which was prepared by the Ministry of Finance (MoF) and published in the Official Gazette in December. 31, 2019.
Originally slated to come into effect in 2020, the new structure has not been implemented, although it remains a question of when rather than if. The association has continued to call for its introduction to be delayed, saying the new excise duty calculations could further increase CKD car prices if implemented next year.
Its chairman, Datuk Aishah Ahmad, said the MAA is still awaiting a response from the Ministry of Finance (MOF) regarding OMV. She added that the association had discussions with the customs department about this.
“MAA has had discussions with Customs, and they have indicated that they would support the OMV calculation method not being revised,” she said last week during MAA’s market performance briefing. automotive for the first half of 2022. “So we are still waiting for the official approval letter from MOF. They (MOF) are still looking into this, but I expect there will be positive signs,” she added.
Earlier, Aishah said that given the current economic climate, any further price increases would weigh on consumers and affect the competitiveness of the local auto market.
Under the terms of the new regulations, completely overturned vehicles will be liable to pay more taxes due to a change in the methodology for calculating a vehicle’s OMV. This takes into account not only the profit and overhead incurred or recognized when manufacturing a vehicle, but also when selling it. You can find out more here.