Reduce Car Prices before Raising Fuel Prices


SHAH ALAM, 13 Sept: The Umno-BN government has been urged to reduce car prices before increasing fuel prices, stressed Member of Parliament for Pandan, Rafizi Ramli.

He said that the high car tax structure has caused the people to pay double the price compared to people in other countries.

“The Edge report which stated that Malaysia has the second highest car prices in the world was not surprising.

“That is why the people cannot compromise when BN raised fuel prices because it is not fair when the tax imposed on cars is among the highest in the world,” he said in a press statement.

Rafizi said that BN has often said that the people do not pay the market price for a litre of petrol or diesel, and used as an excuse to raise fuel prices.

Instead, BN does not want to lower car prices so that the people can pay the market price for a car, like citizens in any other country.

Rafizi said that and average citizen, whose family household earn below RM5,000 a month (as estimated to make up 70 percent of families in this country) pay more taxes and toll compared to the fuel subsidy received.

“An average household uses 300 litres of petrol a month. With a subsidy of 63 sen per litre, this means that a household receives fuel subsidies worth RM189 per month,” he said.

Rafizi said for a car that costs RM60,000, paid in instalments over 7 years, the car excise duty and interest on the car excise duty is estimated at RM3,565 annually, equivalent to around RM300 per month.

This means that BN taxes the people on car excise duty amounting to RM300 per month, while fuel subsidies received is only RM189 for an average household.

“This is a real and apparent injustice against the citizens. What is worst is when BN refused to acknowledge the fact that they are taxing the people more than fuel subsidies,” stressed Rafizi.

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