PUTRAJAYA, Nov 26 (Bernama) -- The government is to provide an exemption of duty and taxes for the import of motor vehicles exclusively for motorsports competitions beginning next year.

Youth and Sports Minister Datuk Seri Azalina Othman Said, who announced this today, said the exemption of duty and taxes would also apply to vehicle parts and components and tyres as well as safety apparel of the users.

The duty and taxes exemption mechanism would be managed by the Motorsports Association of Malaysia (MAM), she told reporters after announcing the collaboration of MAM and the Automobile Association of Malaysia (AAM), here.

Currently, such vehicles can be imported free of duty and taxes, but only temporarily.

MAM chairman Datuk Azman Yahya said the details of the duty and taxes exemption mechanism would be announced later.

Azalina said the tax exemption would make motorsports more affordable and spur the development and growth of the industry in Malaysia.

Azman said locally built motorsports vehicles as well as parts, tyres and safety apparel were also exempt from excise duty and sales tax.

"The scheme will provide for not only cheaper competition but also better equipment, which in turn, will provide for better competition and potential international exposure and showcasing in Malaysia. This is important in light of the government's significant investment in motorsports," he said.

He also warned that the MAM would monitor closely any misuse of the tax exemption scheme.

"Let's say the owner wants to import a Ferrari under the scheme for a race in Sepang. If the owner fails to enter any of the races throughout the year, we will issue a showcause letter. We don't want the owner using the cheaper Ferrari just to suit his lifestyle," he said.