JOHOR BAHARU: Imposition of the RM10,000 fee for each Approved Permit (AP) on AP holders will prevent selling of the permit that had caused the government to lose millions of ringgit in tax revenue, a deputy minister said On Monday .
"The government will get some tax revenue from the car business but gained nothing when people make money by selling APs," said Deputy Minister of International Trade and Industry Datuk Mukhriz Mahathir.
Going by the 2008 statistics, 381,000 cars were sold in the country, of which 10 per cent or 38,100 cars were imported used cars which needed APs to import them.
If the government had charged the RM10,000 fee for every car at that time it would have earned RM381 million in tax revenue, he said
The revenue could have been used for the people's benefits, he told reporters after closing a seminar on Mind Power in Leadership organised by the Gelang Patah Umno Division in Gelang Patah.
Mukhriz, who was asked on the 2010 Budget proposal to charge RM10,000 for open AP holders for every AP, said the fee will not have much impact on imported cars as they number between 38,000 and 40,000 units a year.
Open AP holders comprise sellers of second-hand, luxury and tuned-up cars.
The Deputy Minister said prices of the imported cars will be determined by market forces.
International Trade and Industry Minister Datuk Mustapa Mohamed will elaborate on the AP issue when unveiling the National Automotive Policy soon(this week), he added.
At the seminar, Mukhriz handed contributions to 90 people who will perform Haj pilgrimage in Mecca this year. - BERNAMA