KUALA LUMPUR, Oct 26 — Perusahaan Otomobil Kedua Sdn Bhd (Perodua) has welcomed the reduction in personal income tax in the 2014 Budget, saying it will increase the disposable income for millions of households in the country.
“We believe that the 2014 national budget is looking to further strengthen the country’s financial and economic standing in a difficult world economic condition by reducing the deficit while at the same time trying to increase the country’s competitiveness via better incentives for all,” Chief Executive Officer Datuk Aminar Rashid Salleh said in a statement.
Aminar Rashid said Perodua recognises the need for the government to implement the Goods and Services Tax to increase the country’s revenue, and applauds the government for giving the people time to understand how it will be implemented.
The reduction in corporate tax to 25 per cent is indeed welcome news as it will make the transition to GST a better one, he said.
On the automotive sector, he said if the growth forecast of 5.0 per cent next year materialises, the total industry volume will also increase in tandem.
“We hope the government will continue to provide a conducive and healthy environment to the auto industry through the various incentives, and we await the announcement of the revised and improved National Automotive Policy.
“Perodua remains cautiously optimistic of meeting our 2014 plans and targets in tandem with the announcement of the 2014 National Budget and as part of our 5-Year Strategic Road Map currently being implemented,” he said.
Meanwhile, Naza World said it was rather surprising that there was no specific announcement for the automobile industry for the second year in a row.
“A hybrid tax break would have given car makers and importers a chance to reach that critical mass of energy efficient vehicle (EEV) sales to trigger local manufacturing.
“EEVs are a sunrise technology and could well be the game changer for our local automotive industry. Perhaps something to consider next,” the group said.
Naza World said globally, the industry itself is at the tipping point of change as oil prices soar progressively and more environmentally friendly alternatives become an urgent need.
“This is a niche that Malaysia can capitalise on to become a hub for the development and manufacture of energy efficient vehicles and components including the infrastructure of charging stations, a crucial element in this scenario,” it added.
Overall, Naza World said, the 2014 Budget is a strategic and fiscally responsible budget aiming for long-term benefits that still looks into the welfare of the people, in particular the lower income group.
This is crucial at this juncture as the health of the Government’s financial position would determine the country’s immediate sovereign rating, it said. — Bernama