The Ministry of Finance said today that the recent hike in the price of new Honda vehicles does not affect the current situation in the country’s automotive industry.
"The people will benefit directly from the tax incentive enjoyed by CKD vehicle producers through competitive sale prices and indirectly benefit from the economic opportunities created, in line with the government’s aspiration under the National Automotive Policy 2020," it said in a statement. "It is imperative that companies comply with the audit review and adhere to the existing duty/tax exemption policy and incentive so as not to raise any issue, and act fairly to all companies that abide by the same basis and use the right criteria.
“Hence, the excise duty exemption rate enjoyed by Honda at this time is reasonable and corresponds with the actual level of localisation achieved by the company,” explained the MOF.