Excise Tax Exemption: Foreigners Prioritised, Own People Oppressed


SHAH ALAM, July 5: The Umno-BN Federal Government is claimed to be practicing a discriminatory attitude against the local people for giving exemptions on excise tax and vehicle sales tax to foreigners.

According to the Assemblyman for Kampung Tunku, Lau Weng San, the exemption is granted to foreigners who join the ‘Malaysia My Second Home’ (MM2H) programme.

Weng San said that based on the MM2H website, participants of the programme are allowed to purchase a locally assembled vehicle (Complete Knock Down-CKD) without having to pay the taxes involved.

“In Pakatan Rakyat, we have asked Umno-BN to reduce car prices and eliminate the excise tax, however it has not been given any attention.

After the 13th General Election (GE-13), Umno-BN informed that car prices will come down in stages buy they insisted that they will not eliminate the excise tax because it contributes to RM7 billion in taxes.

“Why does the Central Government agree to allow exemption of excise tax and sales tax to foreigners who take part in the MM2H while our own people are not allowed to enjoy this exemption?

“Does this mean that the people’s taxes contributed to the Central Government are still not enough for the people to receive such treatment?” he asked in a press conference here at the Annex Building of the Selangor State Assembly.

Weng San added that the conflict indicates imbalance and dysfunction in the policies by the Central Government which is led by Umno-BN.

“Malaysians should be prioritised in any government policy. What we see if the other way around.

I really hope that the people can buy high-quality cars at lower prices through the reduction of the taxes to reduce their burden,” he said.

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