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Message: <blockquote data-quote="Schwepps" data-source="post: 356401" data-attributes="member: 3592">Guys, the National Automotive Policy was announced in late-2005, and implemented in 2006 with the tax rates shown here: <a href="http://www.maa.org.my/info_duty.htm#03" target="_blank">http://www.maa.org.my/info_duty.htm#03</a>  The NAP was a move towards AFTA Common Effective Preferential Tariff (CEPT) compliance in the auto industry and it was already promised then that, among other things, that by 2010 import duty would drop to 0% and APs would be abolished. The recent comments by the DPM are in line with the policy.The NAP replaced the import duty regime with excise duty. Excise duty is considered a domestic tax like service tax, and is used by many countries to 'manage' domestic policies. We are paying 80% excise duty for the CKD 320i and 90% for the CKD 325i. That's about RM65k and RM85k in excise respectively. The import duty is already a smallish part of the taxes on the CIF value of CKD parts and CBUs. Dropping it to 0% won't change things much, especially if the excise duty is raised correspondingly.Focus on the definition "excise duty is a domestic tax". The thing is that national cars are supposed to be excisable too at the same rate as imports so that there is no protectionism. But being a domestic tax, it can also be waived...or holiday-ed... <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite2" alt=";)" title="Wink    ;)" loading="lazy" data-shortname=";)" />The NAP came into being only 3 years ago, but we have short memories. Some people even think that the 300% top-end import duty still exists! <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite8" alt=":D" title="Big Grin    :D" loading="lazy" data-shortname=":D" /></blockquote>

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