Lies about cheaper cars

Monday, September 17, 2012

Feel free for fuel free casr too as Pakatan has promised a 'free' Malaysia should they win the next General Election

PKR's Rafizi Ramli has again made a nonsensical and irresponsible statement regarding Approved Permits (AP) for the import of cars - intended specifically to confuse the rakyat, and create dissatisfaction towards the BN Government.

He suggested at a press conference yesterday that taxpayers lose around RM3.5 billion annually through the country's practice of "giving out" APs without an open tender, adding that it can be used to bring down car prices instead.

What makes his statement mischievous is that while he says PR will slash excise duties and "the triple-tax burden" (what this consists is not explained) on cars if it comes to power, the practice of open tender will bring in extra revenues for the Government of up to RM50,000 for each car.

How will selling APs to the highest bidder reduce prices for the consumer? Is he suggesting that the car sellers absorb that cost and not charge their customers for it? Wouldn't AP owners transfer the cost to car buyers if they were forced to pay this extra charge?

Also, how will his approach reduce prices for cars which under the current tax regime do not fetch excise duties and "the triple-tax burden" that total less than RM50,000?

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