Proton’s price is 53% cheaper in Saudi Arabia

Source: http://refsa.org/relevant-number/protons-price-is-53-cheaper-in-saudi-arabia/

Same set of keys, different price - Saudi Arabians pay half of what a Malaysian would, when buying the same model of the “Malaysian car”.

The highest price of brand new Proton Waja, Gen 2 and Persona cars were RM 43,570 between 2008 and 2009 in Saudi Arabia. The lowest price could even go until to RM 33,200 for a Gen 2 1.6 M/T L-Line car, as revealed in a parliamentary answer by the Ministry of Finance.

In contrast, Malaysians paid RM52,999 for a standard Waja or Persona, RM 52,988 for a Gen 2.

Particularly, Gen 2 1.6 A/T H-Line is sold 53% cheaper in Saudi Arabia compared to in Malaysia!

Table 1: Same cars, but Malaysians pay more than Saudi Arabians

Sources: Ministry of Finance’s written parliamentary answer to Member of Parliament for Kubang Kerian, Salahuddin Ayub, 11 October – 16 December 2010; Proton Edar June 2011 price lists, http://www.proton-edar.com.my/

The fact that local cars are cheaper overseas makes little sense. Proton cars are locally assembled, and utilises a good amount of locally-made spare parts. To top it off, these Malaysian cars are not levied import tax, so what is impregnating the price tags?

The burden comes from excise duty and sale tax, which are a minimum of 65% and 10% respectively, according to Aisha Ahmad, the President of Malaysian Automotive Association.

Aisha said in January 2011 that every car sold in Malaysia had been levied 65-105% excise duties, not including 10% sales tax, adding that Thailand’s excise duty is about 35%, by contrast.

If every national car is levied 75% taxes, then every car owner will have to contribute RM 15,000, RM 17,142, RM 19,285 or RM 21,428 for the government for buying RM 35k, 40k, 45k or 50k worth car.

Aisha pointed out that Malaysians are currently paying RM6 billion in excise taxes on cars per annum to the government.

Contributing our hard-earned ringgit for the development of the country would have been noble, but with over nine ministries revealed to have overspent RM3.73 billion of its operational allocation, and RM 2.57 billion paid to 2,000 dead pensioners, amidst other questionable management of funds brought to light by the 2010 Auditor-General’s Report, one is hard-pressed to muster the enthusiasm in paying these taxes.

Aisha added the association has been lobbying the government to lower the excise duties to be in line with other ASEAN countries, but had been rejected.

The given reason? Why, the government" needs the money”!