An opposition politician has slammed the BN for allegedly backtracking on its pre-election promise to reduce car prices, with the latest 5 percent increase in excise duty on certain vehicles.

“Yesterday, Paul Tan’s Automotive News, a Malaysia popular automotive website revealed that the government has increased the excise duty on budget MPV (multi-purpose vehicle) by 5 percent to 65 percent.

“The vehicles that are affected by this increase of excise duty include the Honda BR-V, Toyota Sienta, Toyota Avanza, Perodua Alza and Proton Ertiga.

“It is anticipated that car manufacturers will pass on this increase in excise duty to customers, and this would lead to more expensive cars,” said Perak DAP publicity bureau chief Chong Zhemin in a statement today.

On March 31 the government published its Excise Duties Order 2017, which replaces the 2012 version and takes effect from April 1, 2017 and includes the increased rates for MPVs.

“BN’s move to increase the excise duty on budget MPVs is a betrayal of their GE13 manifesto to reduce car prices by 30 percent.

“Since 2013, car manufacturers have hiked car prices at least twice due to the falling ringgit.

“BN has not only failed to formulate any policy to reduce car prices, they have also failed miserably to neutralise the effect of the depreciating ringgit that has led to a car price hike,” said Chong.

In the run up to the 13th general election in 2013, Umno president Najib Razak announced that if the BN is returned to power, it would “revamp the National Automotive Policy to gradually reduce car prices by 20 - 30 percent and increase the competitiveness of the national cars”.

After the election, opposition leaders criticised the BN for failing to deliver on its promise.

Apart from car prices, rising inflation rates has become a sore point exacerbated by the implementation of the 6 percent Goods & Services Tax and the value of the ringgit, which is said to have fallen to its lowest levels since the 1998 Asian financial crisis.

Utusan: Hike may hit brakes

Chong urged the government to review its hike as the budget MPV is now one of Malaysia's favourite cars suited to the needs of a small family.

"I urge BN to withdraw the increase in excise duty on budget MPV with immediate effect.

"I also call on BN to fulfil their GE13 manifesto to reduce car prices by 30 percent, failure in which BN will be booted out by the people in the next general election," he said.

Meanwhile Utusan Malaysia today quoted a source as saying the Ministry for International Trade and Industry (Miti) and the Malaysian Automotive Institute have demanded an explanation over the increase from both the Customs Department and Finance Ministry.

It added the increase on MPVs may ultimately be cancelled, claiming it was due to “confusion” in the coding system of various categories.