KUALA LUMPUR: The government is currently identifying the most effective measures to mitigate the impact of rising local vehicle prices following the enforcement of Regulation P.U.(A) 402/2019, says Deputy Finance Minister Lim Hui Ying.
Regulation P.U.(A) 402/2019 refers to the Excise Regulations (Determination of the Value of Locally Manufactured Goods for the Purpose of Imposing Excise Duty).
She said the government would introduce mitigation measures to minimise the burden on the public.
“The government has collected data and held engagement sessions with industry players to gather feedback and find practical solutions to the issues raised,” she said during the question-and-answer session in the Dewan Rakyat today.
At present, she said, exemptions from the implementation of Regulation P.U.(A) 402/2019 were granted exclusively to manufacturers of locally assembled (CKD) vehicles.
“This exemption was introduced following concerns from the local automotive industry about a sudden spike in vehicle prices resulting from the regulation’s enforcement, and to give the industry more time to prepare for its full implementation,” she added.
However, Lim said that the overall impact of the regulation on vehicle prices remained uncertain, as local vehicle assemblers operate under differing business models, leading to inconsistencies in the imposition of excise duties on manufactured vehicles.
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