Discrimination towards Malaysians when foreigners who enroll themselves in MM2H were given car sales tax and excise duty exemption

The Barisan Nasional (BN)-led government’s decision that foreigners who enroll themselves in Malaysia My Second Home (MM2H) will be exempted from car sales tax and excise duty. But it did not give the better benefit of a doubt to Malaysians ourselves. It is a form of discrimination and it is unacceptable.

Referring to the MM2H’s webpage, all who enrolled into the MM2H programme are foreigners and allowed to purchase a locally assembled car (Complete Knock Down - CKD) without paying sales tax and excise duty.

Before, during and after the 13th General Election (GE13), this issue was a concern to the public. This claim, was included in Pakatan Rakyat (PR)’s GE13 Manifesto. It was such a strong claim from the people until BN needs to include the proposal to reduce car prices in their GE13 manifesto although its approach is way different than PR.

After GE13, BN leaders issued various commentaries on this matter. These includes Deputy Minister of International Trade and Industry Datuk Ir. Hamim Samuri’s statement in Dewan Rakyat that BN-led government will reduce car prices by stages through various incentives to car manufacturers in assembling cars in Malaysia thus, reducing the excise duty.

He added that BN-led government will never abolish excise duty because it contributes RM7 billion a year.

The question is why is the government willing to provide sales tax and excise duty exemption to foreigners who enrolled themselves into MM2H when their own people are not allowed to enjoy such exemption?

Didn’t Malaysians pay taxes to the government and contributed in overseas development?

Does this mean that Malaysians’ contribution is not worthy of enjoying sales and excise duty exemption as compared to MM2H’s participants who have just migrated to Malaysia?

Secondly, this discrimination is also felt by all non-administrative MPs where they do not enjoy such exemption too. It is because they were only allowed of excise duty exemption to purchase a locally assembled 4-wheeled drive only.

Even so, they still have to pay sales tax while MM2H’s participants does not need to. Moreover, MM2H’s participant could purchase any vehicle as long as it’s a CKD-modeled.

My purpose of raising this matter is to prove the inconsistency and the defect in the BN-led government’s policies on automobile industry.

Malaysians ought to be put first in any of the government’s policy. What we have witnessed here, is the contrary. We hope this matter will be given attention by that particular party concerned. I hope the people will be able to purchase fine quality cars on a cheaper price through reduction in the sales and excise duty. This would help to reduce the burden on their families.

Lau Weng San DAP Selangor State Organizing Secretary & SA for Kampung Tunku