TASEK GELUGOR, July 28 (Bernama) -- The nation will experience economic
instability and many will go bankrupt if the price and excise duty of vehicles
are reduced.
Minister in the Prime Minister''s Department Tan Sri Nor Mohamed Yakcop said,
getting rid of taxes for cars would reduce national revenue by RM7 billion which
could affect infrastructural development, especially in Sabah and Sarawak, and
in the interior of the peninsula.
"If the opposition makes a decison to get rid of the excise tax, the people
who are living in poor conditions cannot boost their lives because money is not
available.
"When they do away with the excise duty, the price of cars will go down, that
is correct...but if the reduction is sudden, those second-hand car dealers with
numerous vehicles will definitely go bankrupt.
"What about the people who work at the (second-hand car dealer) shops? It will
give a side-effect to the economy.
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