Pekema wants AP policy to be maintained
KUALA LUMPUR: The Malay Vehicle Importers and Traders Association of Malaysia (Pekema) has called on the government not to abolish the approved permits (APs) enjoyed by Bumiputera car dealers.
Its president, Datuk Zainuddin Abd Rahman, said the only thing that should be removed was the hefty RM10,000 levy imposed on car traders with APs.
“There are about 800 types of APs in Malaysia and only an open AP (used by car traders) is charged such a high fee. And the question is, for the open AP, why does it have to be paid?
“The previous government promised that 40 per cent of the levy collection would be channelled back to Pekema for our members to upgrade exhibition centres and as capital.
“Another 40 per cent of the levy collection would be used to help finance entrepreneurs who want to venture into the automotive business, and the rest would go to the Malaysia Automotive Institute.
“However, this was not the case as only less than one per cent of the collection went to Pekema members,” he said after meeting the Council of Eminent Persons, here, yesterday.
Between 2010 and last year, the open AP payments totalled RM2.7 billion. The government collects about RM350 million a year.
Zainuddin said the lower number of APs allocated last year was largely attributed to the sluggish automotive market as a result of the Goods and Services Tax (GST).
He said after the government announced the zero-rated GST, the car market started to show a positive trend.