Proton faces delicate balancing act to maintain sales

Perusahaan Otomobil Nasional Bhd (Proton) will have to tread a fine line in its marketing drive this year in view of the new duty structure for the motor industry, which will eventually increase the price of national cars. 

Under the new structure unveiled by the government on New Year’s Eve, the import duty on completely knocked down (CKD) motor vehicles from Asean countries has been reduced to a flat 25% from 42%–80%. At the same time, the excise duty on such vehicles has been raised to 60%–100%, while the sales tax remains unchanged at 10%.