It has been almost two weeks since the government announcement on the new tariff structure for motor vehicles but to date the new car prices have yet to be finalised.

The government should have not waited until the last minute to announce the new tariff structure. It should have also been in dialogue with the car industry before the announcement and implementation of the new tariff structure so the industry would have an idea as to how to react to the new tariff structure.

When queried on the confusion among motor industry players over the new tariff and excise duties announced by the government, the International Trade and Industry Minister Rafidah Aziz said it was "not so much of a confusion among the industry players, they just need clarification."

Surely the industry must have been confused to have needed clarification. Furthermore, having taken so long to come out with the new tariff structure, I do not understand how the government could have left out the details required by the industry to enable them to adjust the car prices.

I also find the announcement by the government lacking in detail regarding the future tariff structure on motor vehicles. For example the government has not stated how it proposes to reduce import duties on motor vehicles to between zero to five percent in 2008 for Asean cars.

Will there be a gradual yearly reduction of import duties of five percent between 2004 to 2008 on the new tariff structure for motor vehicles (i.e. 2004: 25 percent, 2005: 20 percent, 2006: 15 percent, 2007: 10 percent, 2008: five percent)?

Will there be a corresponding increase in excise duties during the period (2004-2008)? What does the government propose to do with the 50 percent rebate/waiver/discount currently enjoyed by national cars once it expires on Jan 31? Will it be extended? Would such an extension be legal under the Asean Free Trade Agreement (Afta) and World Trade Organisation rules?

Rafidah was reported by Reuters to say that the government will decide in due course whether to extend a 50 percent rebate on excise duty for its national carmakers, due to expire at the end of this year. She told reporters: "That decision has not been made yet. We will make the decision when the time comes."

Having taken so long to make the announcement, I would have thought the government would have thought out the whole matter including the issue of the 50 percent rebate on excise duty for national carmakers.

I was under the impression that Afta did not allow discrimination between national and non-national cars and therefore if excise duties are imposed on motor vehicles, it should be imposed across the board equally and not selectively. Rafidah was reported to have stated that it is the government's sovereign right to give a discount or exemption on excise duties to national cars and that the same is WTO compliant.

I also do not understand how the minister can claim the right to impose such taxes, when by the signing multilateral trade treaties such as Afta and WTO Malaysia has compromised its rights to impose unfair protectionist taxation which would include selective waiver on excise duties.

It is therefore very disappointing that our government chooses to be so vague on its policies towards the motor industry when it's a matter of such great importance to our country.

It is not only consumers that eagerly await more details but more importantly the international auto industry needs to know what is in store in the years to come to enable them to decide whether or not to invest in Malaysia.

Malaysia has already lost out in a lot of potential foreign investment with auto manufacturers setting up their plants in Thailand. It is hoped that future announcements by the government on the matter will give us all a clearer picture as to the tariff structure to be imposed on the auto industry in the years to come.