The car dealers have said that the 40% reduction in tariffs on imported used commercial vehicles will not significantly ease the burden on consumers and vehicle business in the country.
The importers described the Federal Government’s reduction of tariffs on vehicles from 70 per cent to 40 per cent as having only a marginal impact on vehicle prices.
Those who spoke with Daily Sun said that the 40 per cent reduction is only tariff not the import duty, which form the major component of car prices in the country.
This comes as the government rolled out the 2026 Fiscal Policy Measures (FPM), a broad package of reforms aimed at stimulating economic growth through adjustments in import tariffs across key sectors.
Under the new policy, the Import Adjustment Tax (IAT) on products such as crude palm oil has been reduced to an effective rate of 28.75 per cent.
In the automotive sector, tariffs on fully built passenger vehicles, including four-wheel drives and station wagons, were also cut to 40 per cent from 70 per cent, reversing the higher rates introduced under the 2015 FPM.
