Mukhriz has no idea on how AP system works

G Vinod | September 14, 2012

The PKR strategic director explains to the deputy minister on how auctioning approved permits (Aps) to import cars can help slash car prices.

PETALING JAYA: International Trade and Industries Deputy Minister Mukhriz Mahathir seems genuinely oblivious on how auctioning Approved Permit (AP) to import cars can help reduce car prices, said PKR’s strategic director Rafizi Ramli today.

Yesterday, Mukhriz said he was baffled by Rafizi’s suggestion that auctioning AP would help reduce car prices.

“His logic really baffles me. On one hand, he says he wants to bring down car prices. On the other, he says we should auction APs.

“He hasn’t explained how to bring car prices down when [it is priced at] RM50,000 to RM60,000 per AP. So what does a [Toyota] Camry cost by the time he’s done with that?” he had said.

Rafizi, in an attempt to school Mukhriz on the matter, cited Petaling Jaya MP Tony Pua’s experience in purchasing a Nissan Juke for RM100,000, using the latter’s entitlement to an AP.

“Pua was lucky to have been able to buy the car at RM100,000. If he had bought it from a local car dealer, the price would have been RM160,000.

“The RM60,000 difference between buying from an importer and importing yourself (because you have an AP) is the impact of the opaque AP system which has pushed car prices very high,” he said.

In an auction process, Rafizi said Pua would have placed a bid, taking into consideration of the price he was willing to pay for the car.

“Pua may consider bidding up to RM40,000 for the AP, considering the car price is only worth RM45,000, excluding the taxes. So the car price would only cost RM85,000.

“This is the part that Mukhriz has failed to understand. Unknowingly, he has revealed his incompetence to the whole country,” he added.

However, the PKR leader said the real culprit that pushed car prices up were the taxes, especially the excise tax imposed on cars, as only 10% of the cars sold annually in Malaysia were brought in with APs.

Referring to Pua, Rafizi said the RM100,000 the DAP MP spent to purchase his Nissan was inclusive of the taxes.

“The price of the car, including shipping cost, is only worth RM45,000. The balance money is forked out to pay for the 85% excise tax, 10% sales tax and import tax of 30%,” he said.