KUANTAN: Slashing the excise duty on cars will have an adverse impact on the nation's development, said Customs director-general Datuk Khazali Ahmad.

He said the Customs Department's biggest revenue actually came from excise duty for local and imported cars.

“This money is used for the country's various sectors such as education, health and social development,” he told reporters after attending the Pahang Royal Malaysian Customs Department breaking of fast event with the Sultan of Pahang Sultan Ahmad Shah on Thursday evening.

Khazali was commenting on Pakatan Rakyat's pledge to revamp the National Automotive Policy (NAP), including slashing the excise duty and reducing the triple-tax burden.