The Malaysian government is cutting taxes under its long-awaited new National Automotive Policy (NAP) but also freezing production expansion until existing capacity is reached. The import duty on Association of Southeast Asian Nations (ASEAN) completely built-up (CBU) vehicles is being reduced immediately to 5% – a level the Malaysians initially aimed to reach by Jan.1, 2008, under the ASEAN regional trade pact. CBU cars from non-ASEAN countries will see taxes cut between 5% and 30%. ...

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