Cut in duties for cars from Japan Australia imminent…Ha3!
February 27, 2013
Visitors look at Toyota Motor Corp’s cars at the company’s showroom in Tokyo February 5, 2013. — Reuters picKUALA LUMPUR, Feb 27 —
Putrajaya will announce a cut in car duties from Japan and Australia tomorrow, which would mean zero duties after three years similar to cars from Asean nations.
The Star Online quoted Minister for International Trade and Industry, Datuk Seri Mustapa Mohamed, as saying today that the reduction would span three years for car models originating from the two countries.
He declined to elaborate further and told the news portal that more details would be released tomorrow.
Malaysia exports Proton cars to Australia now, but does not import many vehicles from the Commonwealth country.
The Malaysian Insider understands that under the Malaysia-Australia Free Trade Agreement (FTA) which came into effect on January 1, Putrajaya has committed to cut duties from 15 per cent in 2013 to 10 per cent in 2014 and 5 per cent in 2015 with zero duties in 2016.
The Edge, meanwhile, reported that the move is seen as a response to Pakatan Rakyat’s promise to make cars cheaper through the reduction of various car taxes as stated in their election manifesto.
Malaysia is also a signatory to the Asean Free Trade Area (AFTA) agreement, which will liberalise the automotive industry by the end of 2015 through the removal of taxes on vehicles with at least 40 per cent Asean regional value content.