Thursday October 25, 2012

No rebate for green cars

Reports by MARTIN CARVALHO, YUEN MEIKENG AND RAHIMY RAHIM

THERE is no plan as yet to offer cash rebates to those who buy energy-efficient vehicles (EEV) similar to what has been implemented in the United States or other European countries, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

This is because a large amount of funding is needed for such a venture although the move would attract more people to purchase electric cars or EEVs, he added.

“As of now, in order to attract market interest, the Government has lifted the import duties for EEVs while the private sector would be given incentives to set up manufacturing plants here,” he told Datuk Ismail Kassim (BN-Arau) during Question Time.

Ismail had asked whether the Government would consider giving cash rebates to attract more people to buy EEVs or hybrid vehicles.

Mustapa said the Government incentives given to major companies had attracted companies such as Honda, which recently set up an EEV factory in Malacca, attracting some RM1bil worth of investments.

He said the factory had created 1,000 job opportunities for locals and produces some 50,000 EEVs.

Mustapa also said the reduction of car excise duties needed to be studied carefully to avoid any negative implications to the economy.

“We believe that Malaysian vehicle ownership costs are cheaper compared with other Asean countries if we consider factors such as oil and gas subsidies and other expenses.

“We must also look into the economic impact on second-hand car dealers, public transportation as well as congestion issues before we can reduce the import car excise duties, he told Datuk Saifuddin Nasution Ismail (PKR-Machang), who asked whether the Government intends to reduce the excise duty for cars.

News

Thursday October 25, 2012

No rebate for green cars

Reports by MARTIN CARVALHO, YUEN MEIKENG AND RAHIMY RAHIM