KUALA LUMPUR, July 2 — The price tags on cars are likely to remain the same after the Barisan Nasional (BN) government said today it is only planning to fulfil its Election 2013 pledge to lower imported car prices by 20 per cent in “five years”.

Deputy International Trade and Industry Minister Hamim Sumari told the Dewan Rakyat during Question Time that the government was not planning to slash import duties in his reply to MCA Labis MP Datuk Chua Tee Yong.

Chua, a former deputy minister, had asked the federal government to state a date of its plan to cut duty rates on imported cars as promised by BN in its Election 2013 manifesto.

“On the promise to reduce it by 20 per cent, maybe in five years,” said Hamim, who is also Ledang MP.

Putrajaya’s revelation would likely be seen as a confirmation on opposition allegation that the Najib administration would renege on its promise to revamp the National Automotive Policy to cut prices by 20 to 30 per cent.

International Trade and Industry Minister Datuk Mustapa Mohamed had in April vaguely said price reductions would be done in stages while giving his assurance that “market forces” would guarantee deflation in car prices.

He was also quoted as saying that slashing prices by cutting car excise duties, which was a promise offered by Pakatan Rakyat (PR) in its manifesto, would have a serious affect on the automotive industry and could lead to the loss of job opportunities and the closure of businesses.

His deputy again told the Dewan Rakyat today that slashing duties will not guarantee a drop in car prices while arguing that “market forces”, like competitive pricing for car spare parts could help bring car prices down.

Hamim also echoed Putrajaya’s argument that slashing import duties would cut government revenue by RM7 billion annually.

PKR Pandan MP Rafizi Ramli, one of PR’s main brains behind the opposition’s cheap-car price campaign, criticised the policy as “shallow”.

“What the deputy minister just proposed is not a holistic solution to the issue and will not reduce car prices.

“I don’t see what is the problem with the government slashing duties by only five per cent which would only cost RM350 million annually which is a small amount compared to the RM250 million given to a minister to take care of cows,” he said, referring to National Feedlot Centre scandal involving then Women’s Minister Datuk Seri Shahrizat Jalil.

In the past, government leaders, worried by the opposition’s popular proposal to make cars cheap prior to the elections, had said that car prices are already on the decline due to existing policies under the gradual implementation of the The Asean Free Trade Agreement.