The government's announcement of a reduction in import taxes on completely built up (CBU) vehicles will not help reduce car prices, but benefit only the rich, PKR says.

"PKR views that the Umno-BN policy has been implemented to benefit the rich.

NONE "Import taxes are being removed only for large and expensive cars that only the rich can afford," said PKR strategy director Rafizi Ramli ( left ) in a statement today.

He was referring to the Ministry of Trade and Industry's (Miti) announcement of an eventual reduction in import duties on cars from Japan and Australia.

According to The Star , Miti Minister Mustapa Mohamed will be announcing the cuts today which will take effect over the next three to four years.

He said the tax cuts were nothing new but had been in existence since 2012, and the present talk of reducing car prices was just "a political ploy" in the run up to the 13th general election.

"What is worse, removing import taxes for luxury CBU cars imported from Japan has already been implemented by Umno-BN now.

"Right now, Umno-BN does not impose any tax whatsoever on imported Japanese cars from 2,500 to 3,000 cc," he said.

He said to effectively reduce car prices, the excise tax structure had to be totally revamped, which is what PKR is committed to do.

"This is the tax that is squeezing out the people's blood, especially those from the lower income groups who buy local cars.

NONE "They are forced to pay car prices up to twice the actual cost because of the excise tax that is levied.

"More importantly, this tax is under the full control of the federal government without the need to negotiate with any outside country," he said.

"If Umno-BN is concerned with the people's welfare, then it be fairer to reduce excise tax, not play wayang as is the present case," he said.

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