Economic instability if car prices reduced, says Nor Mohamed
TASEK GELUGOR, July 28 — The nation will experience economic instability and many will go bankrupt if the prices and excise duty of vehicles are reduced.
Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop (picture) said getting rid of taxes for cars would reduce national revenue by RM7 billion which could affect infrastructural development, especially in Sabah and Sarawak, and in the interior of the peninsula.
“If the opposition makes a decision to get rid of the excise tax, the people who are living in poor conditions cannot boost their lives because money is not available.
“When they do away with the excise duty, the price of cars will go down, that is correct... but if the reduction is sudden, those second-hand car dealers with numerous vehicles will definitely go bankrupt.
“What about the people who work at the (second-hand car dealer) shops? It will give a side-effect to the economy.
“It is possible, if you want to reduce the excise duty, but (one) must think of many aspects, the negative and the positive,” he told reporters here.
Nor Mohamed was commenting on a statement by PKR strategic director Rafizi Ramli who promised that Pakatan Rakyat would reduce the prices of cars if the opposition pact wins the 13th general election.
Nor Mohamed likened the opposition pact’s promises to its shallow thinking because “they (opposition) made statements without studying and thinking of the implications on the nation”.
He said the attitude of the opposition was opposed to the Barisan Nasional government which always placed the people’s welfare uppermost by making decisions based on wisdom so that the economy could be generated and the people would prosper. — Bernama