Under the new OMV calculation, car manufacturers should include their marketing costs, profits and royalties into the new methodology. Aishah said currently excise duties imposed on CKD vehicles ranging from 65 per cent to 105 per cent remain unchanged. This allows the government via the Automotive Business Development Committee (ABCD) to deliberate the tax incentives for new CKD vehicles. ABCD comprises representatives from International Trade and Industry Ministry, Finance Ministry, Malaysia Automotive Robotics and IoT Institute, Malaysian Investment Development Authority and the Customs. She said the approval process usually requires about four months in determining the final prices before new CKD vehicles can be launched.

Source: New Strait Times January 23, 2020 07:50 UTC