Rafizi Ramli Once Shared Formula To Lower Car Prices

Rafizi Ramli, the minister of economy, presented a formula in 2013 for reducing automobile prices, which are currently observed to be rising.

If excise tax and sales tax were gradually eliminated, he claimed, the cost of an automobile might be low.

"For Perodua Myvi 1,800 cc, the total tax is 85 percent because there is a 75 percent excise tax and a 10 percent sales tax.

In a video clip, he added, "If the Myvi car costs RM46,000, then the automobile costs RM24,860, and the remaining RM21,140 is the tax price that needs to be paid."

He even disclosed the costs of a few car models that are offered at premium pricing because of hefty excise and sales taxes.

He debated how to reduce the cost of autos.

"If the high tax is reduced, automobile prices may be dropped, which is why Pakatan Rakyat will gradually eliminate the car tax over the course of five years.

"The progressive tax decrease is seen to be necessary to prevent a sharp decline in the cost of existing cars. The Barisan Nasional government currently earns RM 7.6 billion annually from car taxes under the present tax system (as of 2013)," he stated.

This means that the price of vehicles sold in Malaysia will be reduced by a 20 percent annual tax drop if the Pakatan Rakyat party (People's Justice Party) controls the government.

"However, the national revenue would decline by 20 percent, but it will be replaced by a new revenue which is estimated to bring in RM2 billion annually and is the open auction and sale of AP import automobile permits," he said.

On the other side, Malaysians are currently most eagerly awaiting the formula that was provided nine years ago.

After Pakatan Harapan (PH) returned to power with the successful formation of a Unity Government with additional component parties, including Barisan Nasional (BN), the public seemed to be anticipating that formula.

"Now it's time for Rafizi to put into practice all the formulas issued earlier.

"Hopefully everything will be simplified, anyone who wants to buy a car should wait for the minister to announce the implementation of the formula," commented a social media user, Azizi Hamid.