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[SIZE=-1]AUTOMOBILES[/SIZE]
No tax breaks for Malaysia [SIZE=-1]WICHIT CHANTANUSORNSIRI[/SIZE] The Finance Ministry will maintain a 20% import tax on completely built-up automobiles from Malaysia to counter Kuala Lumpur's imposition of non-tariff barriers on automobile imports, according to Naris Chaiyasoot, director-general of the Fiscal Policy Office.
Malaysia this year complied with the Asean Free Trade Area (Afta) agreement, reluctantly and three years behind schedule, by cutting its import tariffs on automobiles to 5%.
However, it imposed a new trade barrier by demanding that car manufacturers register for approvals.
''This action does not comply with the Afta agreement,'' Dr Naris said. ''So the ministry will not lower import tariffs on [Malaysian] CBU kits to 5% as agreed under Afta.
There has been no response from Kuala Lumpur as to how it would compensate other nations for losses incurred from its refusal to cut tariffs, he added.
The Malaysian measures are expected to have some effect on Thailand's automobile exports. But they are likely to be minor as Japanese car manufacturers have bases in several Asean countries including Thailand and Malaysia, Dr Naris said.
Afta requires the six original Asean members _ Thailand, Malaysia, Singapore, the Philippines, Indonesia and Brunei _ to cut import tariffs to zero by 2010. The four newer and less-developed members _ Burma, Cambodia, Laos and Vietnam _ will have longer to adjust.
Source:-
http://www.bangkokpost.com/Business/19Jun2006_biz27.php
No tax breaks for Malaysia [SIZE=-1]WICHIT CHANTANUSORNSIRI[/SIZE] The Finance Ministry will maintain a 20% import tax on completely built-up automobiles from Malaysia to counter Kuala Lumpur's imposition of non-tariff barriers on automobile imports, according to Naris Chaiyasoot, director-general of the Fiscal Policy Office.
Malaysia this year complied with the Asean Free Trade Area (Afta) agreement, reluctantly and three years behind schedule, by cutting its import tariffs on automobiles to 5%.
However, it imposed a new trade barrier by demanding that car manufacturers register for approvals.
''This action does not comply with the Afta agreement,'' Dr Naris said. ''So the ministry will not lower import tariffs on [Malaysian] CBU kits to 5% as agreed under Afta.
There has been no response from Kuala Lumpur as to how it would compensate other nations for losses incurred from its refusal to cut tariffs, he added.
The Malaysian measures are expected to have some effect on Thailand's automobile exports. But they are likely to be minor as Japanese car manufacturers have bases in several Asean countries including Thailand and Malaysia, Dr Naris said.
Afta requires the six original Asean members _ Thailand, Malaysia, Singapore, the Philippines, Indonesia and Brunei _ to cut import tariffs to zero by 2010. The four newer and less-developed members _ Burma, Cambodia, Laos and Vietnam _ will have longer to adjust.
Source:-
http://www.bangkokpost.com/Business/19Jun2006_biz27.php
