TASIK GELUGOR: 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 decides 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, but if the reduction is sudden, secondhand car dealers will definitely go bankrupt."
Nor Mohamed said this following a statement by Parti Keadilan Rakyat strategic director Mohd Rafizi Ramli who promised to reduce the price of cars if the opposition pact won the 13th general election. Bernama