Tax exemption sought for child car seats
> Plan will boost affordability of child restraining system
PUTRAJAYA: The Transport Ministry will request the government for exemption to be given on import duty and Goods and Services Tax (GST) for child car seats.
Deputy Transport Minister Datuk Aziz Kaprawi (pix) said the tax exemption request for the child restraining system (CRS) is part of the Budget 2017 wishlist by the ministry to be submitted to the Finance Ministry before the tabling of the budget next month.
“We want to make child car seats affordable to parents as we realise that the cost is part of the reason why they are reluctant to purchase and install it in their vehicles,” he told theSun.
“We hope our proposal will be accepted by the government,” Aziz said.
Currently, child car seats are being imposed with GST together with import tax duty of up to 30%. The item is categorised as car accessories under HS 9401.2 coding by the Customs Department. However, not all imported child car seats are imposed with the high tax structure.
“For example, if we sourced it from China, there won’t be any import tax duty due to the Asean Free Trade Agreement (Afta). But if it’s a non-Afta deal, it entails 30% tax duty,” said a local supplier in the Klang Valley.
Road Safety Department director-general Datuk Arifin Che Mat said most R44certified child seats available in the market are imported items.
He added that they have been talking with local distributors and car manufacturers for the past few months on how they can reduce the price of child car seats.
It is learnt that the Transport Ministry will embark on a year-long safety campaign by the end of November to encourage parents to install the CRS ahead of the ministry’s plan to regulate it by 2019.