How much could taxi drivers save with APs and duty exemptions?

Question

Accepted Answer

Taxi Drivers Could Save Up to 40 Percent on Vehicle Costs with APs and Duty Exemptions

Taxi drivers could potentially reduce their operational expenses by as much as 40 percent through the implementation of approved permits (AP) for vehicle imports coupled with duty exemptions. This initiative would significantly lower the upfront cost of acquiring vehicles, thereby reducing the financial burden of loan repayments. For instance, a vehicle like the Toyota Vellfire, which typically retails for over RM200,000, could become accessible at a price point between RM60,000 and RM70,000 under such a scheme.
Reduced Vehicle Acquisition Costs

The proposal centers on providing taxi permit holders with approved permits (AP) for importing vehicles and exemptions from excise duties. This measure aims to directly address the high cost of vehicle ownership, a major operational expenditure for taxi drivers. By making vehicles more affordable, the financial strain associated with purchasing and financing these assets would be substantially lessened.
Significant Savings on Loan Repayments

A primary benefit highlighted is the reduction in loan installments. With a lower purchase price for vehicles, the principal amount on which bank loans are calculated would decrease. This translates into lower monthly payments, which is particularly crucial for taxi drivers who often operate on tight daily earnings, averaging around RM150. High monthly installments, such as RM1,500 for budget taxis and RM2,700 for executive models, currently represent a significant portion of their income.
Access to Higher-Quality Vehicles

Beyond cost savings, the availability of more affordable vehicles could enable taxi drivers to purchase better quality cars. The example of the Toyota Vellfire illustrates this point; a vehicle normally exceeding RM200,000 could be acquired for a fraction of its price. This would allow drivers to upgrade their fleets, potentially enhancing the passenger experience and offering more comfortable transportation options.
Formal Proposal Under Consideration

This suggestion is being formally put forward by the Malaysia Taxi Drivers’ Coalition, with a proposal slated for submission to the Land Public Transport Commission (SPAD), the Ministry of International Trade and Industry, and the Ministry of Finance. The proposal comes as part of broader reforms intended to revitalize the taxi industry, which is facing increased competition from ride-sharing services. SPAD has already announced other initiatives, including cash grants up to RM5,000 and an allocation of RM150 million for drivers looking to purchase their own vehicles.

Reading history

Hide →

This history is cleared when the page is closed.

How much could taxi drivers save with APs and duty exemptions?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends