Hire Purchase Amendment Act troublesome

JOHOR BAHRU July 14 - Government asked to postpone temporarily the implementation of amendments to the Hire Purchase Act 1967 because it allegedly troublesome various parties including the slowing vehicle sales.
Honorary Secretary of the Association of Malay Vehicle Importers and Traders of Malaysia (Pekema), Datuk Ahmad Kemin said, if the implementation of new regulations which came into force June 16 and continues, it will not only affect the importers and sellers, but buyers and government revenue.
"This is because the sale of affected importers and sellers of cars since the new rules are implemented. When sales of the affected vehicles, the government in the form of income tax paid is reduced.
"For example, last year the government received about RM1.5 billion revenue from the proceeds of 30,000 APs (Approved Permits) issued. This year, the government hopes to earn RM2 billion with 25,000 APs issued and the implementation of new rules, I'm sure the target will not be achieved, "he told The Star here yesterday.
Ahmad, who is also Executive Chairman of Mutiara Motors Sdn. Ltd., Admitted selling his company suffered along with the implementation of new regulations.
"For example, our sales of about 100 vehicles per month but this month, we can only sell 16 pieces," he said.
Payment of tax paid to the government was also affected so that if earlier between RM3 million and RM4 million a month, now it is less than RM1 million.
He said the new rules would also cause the purchasing and registration of new vehicles take longer.
"In the past, the process takes about three days, but now it takes more than a week. This is not only a burden to the seller, but also because they are slow to customer complaints received the vehicle," he said.
He said the registration process in the Road Transport Department (JPJ) and check the Computerised Vehicle Inspection Centre (Puspakom) also takes a long time and greater burden on the vendor for the implementation of new regulations that require vehicle inspections done twice instead of once before.
He said the first Puspakom inspection made while the vehicle import and the second came during the process of buying and selling. The first inspection is charged between RM185 to RM210, while the RM60.
He said the more confusing the seller, the letter of approval from Puspakom take between three to four days compared to the previous day.
Ahmad also said the regulations require a deposit by the purchaser of vehicles delivered to the bank to provide loans as absurd.
Ahmad Kemin


"What is the reason the rules like that? To me it does not make sense because the car is not yet bank-owned, it is still owned by the seller," he said.
Therefore, he suggested other temporary suspend the implementation of the bill, the Ministry of Domestic Trade, Cooperatives and Consumer Affairs (the ministry) held a meeting and discussion with all parties, especially the car dealer in the interest of all parties.

Posted in: Utusan