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Tuesday, September 11, 2012

RM3.5b lost through APs can be used to lower car prices, says PKR


KUALA LUMPUR, Sept 11 — PKR today said taxpayers lose around RM3.5 billion annually through the country's practice of giving out Approved Permits (APs) without an open tender, saying that it can be used to bring down car prices instead.
The party has promised a revamp of the National Automotive Policy (NAP), which will include the slashing of excise duties and the triple-tax burden on cars if it comes into power in the next elections that must be called by April next year.
Datuk Mukhriz Mahathir, the deputy minister of international trade and industry, had last week reportedly said that selling APs to the highest bidders would cause each AP to cost an estimated RM50,000 to RM60,000.
"If the total APs issued each year reaches 70,000 as estimated, the country and the people loses around RM3 billion to RM3.5 billion each year because the ministry headed by Datuk Muhkriz now only charges RM10,000 when it distributes...without going through open tender," said PKR's Rafizi Ramli (picture) at a press conference today.
"For each AP, the country and rakyat loses up to RM50,000 and that amount goes into the pockets of those who gain big profits due to the non-transparent policy of Umno (and) Barisan Nasional."
Rafizi said that an open tender system for APs will "allow car prices to flunctuate based on open market".
He said this will promote competition among car dealers and encourage them to offer the best prices to the public.
MORE TO COME

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