Last week, our dear Mr Rafizi Ramli rocked Malaysians once again. If before he made his marked by exposing the NFC Corp issue, now he came out with an interesting proposal – reduced car price for Malaysians. Let us read what Harakahdaily reported last week (yes, in English ya):
Jul 27: BN leaders have been taken to task over their argument that national car Proton will suffer if Pakatan Rakyat’s proposal to do away with excise duty on vehicles was implemented.
In a statement signed by fellow comrades Nik Nazmi Nik Ahmad and Sim Tze Tzin, PKR reminded that the excise duty currently imposed was applicable to all new vehicles whether local or imported.
As such, it said Proton cars would also see drastic reduction of prices if excise duty was abolished.
On Tuesday, PKR strategic director Rafizi Ramli revealed that the PR leadership was mulling the abolition of excise duty on purchase of new vehicles as part of its election pledges.
Rafizi said the move would not only see a drastic decrease in prices of new vehicles but also could reduce household debt, as personal car loans now exceeded RM134.2 billion, making it the second biggest debt after home loans.
In response, UMNO Youth leader Khairy Jamaluddin dismissed the idea, saying the idea would see Proton at the losing end.
Rafizi however said under the proposal, Proton would still be among the cheapest cars in the market.
He reiterated that the move would increase disposable income among Malaysians, as the majority of households own cars, mostly purchased through loans.
Rafizi also quashed talks that the government would lose income as a result of removing the tax on cars, saying a mechanism to make up for the loss income would be announced by opposition leader Anwar Ibrahim next week.
He further claimed that the estimated RM8 billion which the government earned from such tax was less than spendings not spelt out in the annual budget totalling some RM11.8 billion, including for operational costs of the Prime Minister’s Department.
Indeed, it is a catchy proposal. After all, car is one of the necessities for majority Malaysians nowadays. In fact, by reduced car prices, dream cars are much more reachable to be owned.
Just a note..even though Rafizi said Proton will be among the cheapest cars, I am not sure Proton is a dream car for many.
In the news above, it is mentioned on the reduced car prices can reduce household debt. In accordance to that, can someone justify, in the event it is being applied, what will happen to any ongoing loans? Will it be discounted or not?
The question I posted above is relevant to the title of this article, because we need to know whether we should we buy our car now or later. If it will be discounted, then it is no problem because as at when Pakatan Rakyat wins, our car loan will be reduced and discounted.
However, if it isn’t, I am not sure if Malaysians will buy new car in near future, as it will be an opportunity cost loss (unless it is very much needed to buy one). When Malaysians reluctant to buy car in near future, hoping the car price can be slashed if Pakatan Rakyat wins, I am sure our automotive industry and market will be affected. The sale and production of cars, be it Proton, Perodua, Honda or even Audi, Merc or Beamer will somehow affected. Is it healthy development? I leave it to you.
To my readers, with current development of a potential reduced car price if Pakatan Rakyat be Federal Government, will you buy a car now?
For car dealers, with the same development, how this will really affect your sales?
Question on the street: Will you buy a car now or later? What will be the mechanism that will be announced this week by DS Anwar Ibrahim?