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Tong Kooi Ong blogs Easy money, who can let it go?

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Tong Kooi Ong blogs Easy money, who can let it go? Empty Tong Kooi Ong blogs Easy money, who can let it go?

Post by Cals Tue 21 Jan 2014, 10:46

Tong Kooi Ong blogs Easy money, who can let it go?
Business & Markets 2014
Written by Tong Kooi Ong of theedgemalaysia.com   
Tuesday, 21 January 2014 10:32

THE Government just announced that excise duties on cars will remain, dashing hopes of any reduction in car prices. Excise duties generated RM7.09 billion in 2012. Together with other forms of taxes, the Federal Government collects RM11.14 billion in 2012 from the car industry. 

This RM11.14 billion is equivalent to 48% of personal income taxes, 22% of corporate taxes and 33% of petroleum taxes. For 2013, this revenue source is likely to be higher. The Edge Malaysia carried a thorough report and analysis of the Malaysian automobile industry in the January 6, 2014 issue.

At a time when fiscal restraint is critical to rein in the budget deficit, to counter possible credit rating downgrades and capital outflows, this revenue source is proving too hard to let go.

In the same announcement, the Government has deferred any decision on removing the approved permits (APs) system for importing cars into Malaysia.

In a system where a few individuals can make huge amounts of money by simply being granted the rights to bring in cars, this easy money is too hard to let go. For the interest of making a few rich elites richer, the rest of the population continue to suffer high car prices.

Here is an idea. Remove the excise duties and the Government owns all the APs. Profits from the APs now become Government revenue, replacing the excise duties. And removing the excise duties lowers the price for cars. So, why not?


Tong Kooi Ong is executive chairman of The Edge Media Group. Feedback is welcomed at [You must be registered and logged in to see this link.].
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Tong Kooi Ong blogs Easy money, who can let it go? Empty Re: Tong Kooi Ong blogs Easy money, who can let it go?

Post by Cals Tue 21 Jan 2014, 10:47

he's quite frank and quite right about that suggestion, hopefully this balances it out and someone hears this  Devil
Cals
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Posts : 25277 Credits : 57721 Reputation : 1766
Male Join date : 2011-09-08
Location : global
Comments : “My plan of trading was sound enough and won oftener that it lost. If I had stuck to it I’️d have been right perhaps as often as seven out of ten times.”
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis

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