KUALA LUMPUR: Car prices will be reduced by 30 per cent by 2018, says Minister in the Prime Minister's Department Datuk Seri Azalina Othman Said.
In a written reply to Lim Lip Eng (DAP-Segambut), she said the reduction will be done in stages from a 20 per cent mark.
"Various efforts have been undertaken including the granting of incentives to reduce the amount of excise duty payable to companies of car manufacturers involved in local value-added automotive components.
"These incentives are seen to be beneficial as the total price reduction recorded in 2013 was three per cent, followed by seven per cent in 2014 and 2.7 per cent in 2015," she said.
On the toll rates, Azalina said the government had since 2008 been negotiating with highway concessionaires to reduce the financial burden of the tolls incurred by users.
"The negotiation is aimed at finding the best mechanism to ease the burden of tolls to achieve a 'win-win' situation for all the parties involved, namely the government, concessionaires, investors and consumers," said Azalina.
"Among the results of the negotiations to date are; to postpone an increase in highways toll rates since the past eight years, from 2008 until Oct 14, 2015," she said.
Other results included abolishing toll collection and early closure of eight tolls in six highways; to reduce toll rates involving three highway concessionaires; to restructure toll rates for highways; and to improve the clauses in the concession agreement, including the clause for the revision of toll mechanism - namely the increase in toll rates is no longer justified automatically.
Lim was asking on the status of government's promise made in the 13 General Election to reduce car prices and to reduce toll rates.