PKR said today its plan to slash car prices will not victimise carmaker Proton and the bumiputra business community in the local automotive industry as claimed by Umno and BN.

In a joint statement issued by PKR vice-president Nurul Izzah Anwar, strategic director Rafizi Ramli and deputy publicity chief Sim Tze Tsin, the party claimed that Umno and BN leaders have been playing up racial sentiment by saying that slashing excise duties on cars will bankrupt Proton and local automotive industry.

“This irresponsible action is aimed at sowing the seeds of racial discord among the people by accusing that the proposal to reduce car prices is to kill Proton, which will cause thousands of people, mostly Malays and bumiputra, to lose their jobs,” read the statement.

However, the trio is confident that Proton has the capacity to excel as the federal government has stopped giving excise duty rebates to the carmaker since 2005.

“Since then, all the cars produced by Proton and other national automotive companies have been required to pay the same excise duties as other foreign cars.

“The biggest financial aid received by Proton now is no longer in the form of duty protection but research and development grants to enable it to explore better design and technology.

“The financial statement of Proton for the financial year ending March 31, 2011, stated that it received RM175 million of research and development grant,” explained the three leaders.

Although the amount of grant was far below the multi-billion excise duty rebates enjoyed by Proton before 2005, they said, the carmaker continued to compete and introduce new car models after 2005, a testament that Proton can survive without tax protection.

“Hence PKR is of the view that the racial sentiment played by Umno and BN, that the slashing of car prices would bankrupt Proton, is actually an insult to the professional personnel in Proton and other local automotive companies who are mostly Malays and bumiputra.

“The statements of Umno and BN leaders that gave the impression that Proton and the local automotive industry still receive tax protection are malicious, and they victimise Proton for the political interests of Umno and BN,” said the trio.

They stressed that PKR believes Proton and local automotive industry have the ability to compete at car prices that do not burden the people, and the party is committed to safeguarding the job opportunities and welfare of employees in the industry.

“We will not follow in the footsteps of a former national leader who restrained Proton simply because he wanted to safeguard his legacy.”