Monday, July 16, 2012

The cost of cars these days!

This story appeared in The Star, Saturday, 14 July 2012.


The story was written by Datuk Alan Tong, the Group Chairman of Bukit Kiara Properties. He is one prominent writer in The Star (every Saturday), and I enjoyed reading his writings.

The issue that he brought-up in his latest column is about the cost of cars. According to him, cars nowadays are costing us a lot. I can understand his reasoning: first, we have this dasar (policy) of protecting the interest of our national cars (Proton).

Proton these days has vastly improved in terms of quality; but when it comes to the car price, the amount presented is somewhat pathetic, if I may say. I have no qualms of the car's quality: the new Preve is really nice. But the price? Oh lord...

To me, in this day and age, Proton needs to be competitive in terms of car price. I am always baffled as to the cost of Proton cars: there is a vast difference between the cost of the car in our home country and the country abroad.

The cost of imported cars (Toyota, Suzuki, Honda etc.) is not as high as you might imagined, but the tax imposed is ridiculously high. For example, the website here says that for cars whose engine capacity is less than 1.8L, the tax is 140%. That is so a lot!

Going by simple calculation, if the cost of an imported car is RM 40, 000, then a 100% tax would mean that the car is now priced at RM 80, 000. What about 140% tax? You can calculate that yourself.

Proton needs to compete healthily with other car manufacturers. The authority must try to find a balance between making Proton a profitable company and at the same time, reducing the ridiculously high tax of other imported cars.


My question is, why is the tax so high? Whose interest are we protecting? Whose pocket are we filling? Is the amount paid is worth the service offered?


Tepuk dada, tanya selera.

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