Car dealership bodies propose excise duty exemption to overcome Covid-19 slowdown

5 dealership bodies have appealed to the Ministry of Finance with a memorandum to help ensure the survival of the automotive industry in light of the country’s fight against the coronavirus.

According to our buddies at Careta, the memorandum dated on the 30th of March 2020 was represented by 5 bodies made up of 4 dealer associations of popular car brands in Malaysia and 1 second hand car sales representative.

To ensure the continued business prospects of the association and the safety of their employees, these are the 6 points of proposal stated in the memorandum submitted to the Ministry of Finance:

Allocation of grant / subsidy to car companies

The memorandum is requesting that the government channel grants and subsidies to the dealers, service centres, as well as individual mechanics in order to support these bodies.

Increase in handling fees for hire purchase loans from finance companies

The memorandum proposes to have the fee increased from RM 600 to RM 1,000 to help ease the operating costs in the long run to help cover the losses during the MCO period.

Exemption of excise duty until the end of 2020

An exemption of all excise duty fees in the automotive industry until the end of 2020 has also been requested.

Exemption and reduction of KWSP payments, SOCSO, SIP, and HRDF

It also further requests a reduction of KWSP payments to their employees from 13 percent to 5 percent and an exemption of other payments like SOCSO, SIP, and HRDF until the end of 2020 as well.

Business restructuring

A request of an exemption of penalties from banking institutions for restructuring loan repayments and for the delay and rescheduling of repayment of company loans. 

Restructuring of Scheduled Tax Deductions (PCBs) and Corporate Taxes

The memorandum also proposes that that PCBs for individual taxpayers and corporate tax payments be deferred for a minimum of 6 months at least.

Source: Careta