The government has agreed to streamline the excise duty rate for two- and four-wheel drive vehicles with engine capacity of not more than 1,500cc to 60 per cent effective immediately.

In a press statement, the Royal Malaysian Customs Department (RMCD) said the decision to reduce the excise duty from 65 per cent to 60 per cent was made after taking into account the high demand for completely built-up vehicles currently.

"During the temporary transition period, the amendments that will be gazetted and take effect from April 13, 2017, the move to give excise duty exemption of more than 60 per cent will be given for all vehicles involved," said RMCD Director-General, Datuk Indera Subromaniam Tholasy.

"Through this move, the price of vehicles to purchasers must be maintained and vehicle manufacturers cannot raise the prices based on the increase in excise duty rate which have been gazetted through the Excise Duty Order 2017 on March 31, 2017," he said.

Prior to this, the RMCD in the Federal Government Gazette stated that the excise duty for multi purpose vehicle, sports utility and van with the capacity of 1.5 litre and below have been increased by five per cent from 60 per cent to 65 per cent effective April 1. -- Bernama