Tan Chong Motor to settle RM109 million bill for excise duties via instalments, over a period of 36 months

In May last year, it was reported that Tan Chong Motor Holdings’ subsidiary Tan Chong Motor Assemblies (TCMA) had been slapped with a RM180.11 million bill by the customs department for excise duties from November 1, 2016 to October 31, 2019.

Last month, the company said that the sum for excise duties had been reduced to RM109 million, 40% lower than originally, and that it would be settling its bill out of court. Earlier this week, in a filing with Bursa Malaysia, the company announced that the sum will be settled via instalment payments over a period of 36 months, The Edge reports.

The company said that following a payment of RM10.81 million made on April 20, the remaining balance of RM97.26 million would be paid via 36 equal monthly instalments of RM2.7 million from May 2021 to April 2024, which translates to RM8.1 million being paid each quarter over the next three years. With the arrangement, the customs department said that the matter has been settled accordingly.

TCMA is the automotive group’s manufacturing subsidiary. It began operations in 1976 at its Segambut plant in Kuala Lumput, later expanding production at a new facility in Serendah, Selangor. The company also maintains assembly plants in Da Nang, Vietnam and Yangon, Myanmar.

The subsidiary has produced more than a million passenger and commercial vehicles for Nissan, Renault, Subaru, Mitsubishi, UD Trucks, Foton and Bison trucks.

The post Tan Chong Motor to settle RM109 million bill for excise duties via instalments, over a period of 36 months appeared first on Paul Tan's Automotive News.

from Paul Tan's Automotive News
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