Friday, 27 July 2012

PM’s hefty bills can finance cheap cars plan

Slashing massive sums allocated for the PM can offset the cutting of duties and taxes, says PKR.

PETALING JAYA: PKR claimed today its proposals to provide cheaper cars by cutting duties and tax can easily be financed by slashing the hefty sum allocated annually for the prime minister.

Party strategic director Rafizi Ramli said taxpayers money spent on “vote-buying” projects under the Prime Minister’s Department easily surpassed the current RM8 billion in annual excise duty and tax collection from car sales.

This means Putrajaya’s existing coffers already have the amount needed to revamp the present tax scheme under the current National Automotive Policy.

Leaders from the ruling coalition, in an immediate reaction to PKR’s proposal announced last Tuesday, said that cutting duties and tax would severe the government’s revenue stream considerably.

They also claimed the revamp would hurt national carmakers, Proton and Perodua, as consumers are likely to opt for imported cars with the popular belief that they would be cheaper once import duties and sales tax are reduced.

Rafizi said PKR had already detailed in on the mechanism to substitute the “loss” of revenue including moderating the PMD’s bills and “changing the ways” of Approved Permits.

He said that his party had already drafted a plan to better utilise the AP system and it will be announced by PKR de facto and Opposition Leader Anwar Ibrahim next week.

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