Previously, excise duty on CBU vehicles was based on the value of cost, insurance and freight (CIF).
Under the tax on tax formula, the value of excise duties will be based on the CIF value including the import duties.
With the new structure for all passenger cars, import duties on Asean CBU vehicles will be reduced to 15% from 20%, and that on non- Asean CBUs to 30% from 50%.
The zero per cent import duties on Asean completely knocked down (CKD) passenger cars and 10% on non-Asean CKD remain unchanged.
Excise duties on CBU and CKD passenger cars between 1,800cc and 3,000cc have been reduced to 80% to100%, from 90% to 250%; and on 4WDs to 55% to 160%, from 60% to 170%.
Excise duties on motorcycles were also reduced to 20% to 50%, from 20% to 60%, while that for CKD and CBU multi-purpose vehicles from Asean and non-Asean regions have been raised to 55% to 160%, from 40% to 170%. Although the new tax structure takes effect today, exemption will be given for goods in transit.