Deputy International Trade and Industry Minister Mukhriz Mahathir has scoffed at PKR's claim that auctioning approved permits (AP) for car imports will reduce car prices.
On the contrary, auctioning of an AP will drive its price higher, Mukhriz told reporters in Putrajaya.
"It really baffles logic. On one hand you want to bring car prices down and on the other, you want to auction APs to the highest bidder.
"They have to explain how this will work when auctioning will add RM50,000 to RM60,000 per AP, not even including the price of the car," Mukhriz said.
On the contrary, auctioning of an AP will drive its price higher, Mukhriz told reporters in Putrajaya.
"It really baffles logic. On one hand you want to bring car prices down and on the other, you want to auction APs to the highest bidder."They have to explain how this will work when auctioning will add RM50,000 to RM60,000 per AP, not even including the price of the car," Mukhriz said.
He added that the RM10,000 per AP currently charged is not purely for government revenue but is channelled to “a fund to help the industry”.
“We need car dealerships to divest in other parts of the automotive industry,” he said.
‘PKR out to confuse’
The contradictory nature of the statement, Mukhriz said, showed that PKR was out to “confuse” people.
“They have nice soundbytes - reduce car prices - and they fill up the rest with convoluted statements,” he said.
He also said that he would not attend the PKR forum on the matter in Kuala Lumpur tonight to counter the policy proposal.
“I don’t see why I should be there,” Mukhriz added.
In a move to reduce car prices, PKR is mooting an automotive policy that includes gradually abolishing excise duties.
“We need car dealerships to divest in other parts of the automotive industry,” he said.
‘PKR out to confuse’
The contradictory nature of the statement, Mukhriz said, showed that PKR was out to “confuse” people.
“They have nice soundbytes - reduce car prices - and they fill up the rest with convoluted statements,” he said.
He also said that he would not attend the PKR forum on the matter in Kuala Lumpur tonight to counter the policy proposal.
“I don’t see why I should be there,” Mukhriz added.
In a move to reduce car prices, PKR is mooting an automotive policy that includes gradually abolishing excise duties.
It also plans to auction APs, as a temporary measure to fill the gap in government revenue left by cutting excise duties, before abolishing APs in 2015.
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