The government has been urged to abolish the fee for open approved permits (APs) amounting to RM10,000 per used vehicle as it burdens both the seller and buyer. This was said by Mutiara Motors executive chairman Datuk Ahmad Kemin, reported by Harian Metro.
“I hope the new government can abolish the fee of RM10,000 for each open AP as imposed by the previous government. The sum is a big burden to the retailers, who also had to shoulder the 6% goods and services tax (GST) before this,” Ahmad told the media after the company’s buka puasa event in Johor Bahru.
He added that the proposal is to make it fair for local vehicle importers. “It’s different from franchise AP holders, where no fee is collected despite them importing large numbers. So, it’s only fair for it (open AP fee) to be abolished as we the local importers only bring in a small amount of vehicles,” he said.
The Mutiara Motors chief explained because of the high fees, parallel importers are now facing low profit margins, forcing them to scale down in terms of manpower, giving an example of 250 staff to 150 staff after taking into account wages and utility costs.
On the current tax holiday after GST was zero-rated on June 1, Ahmad welcomed the move, saying that it has increased sales by around 30% to 40%. “On average, we sell 15 to 20 units daily, especially Toyotas, and it’s very encouraging. Many consumers were waiting for 0% GST and took the opportunity to buy,” he said.