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Malaysia Ends Luxury Car Tax Exemptions, Industry Warns

1/15/2026

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Summary

Story summary

The Malaysian government ended tax exemptions for luxury vehicles priced above 300,000 ringgit in Langkawi, raising Ferraris and Lamborghinis from 2.5 million to 5 million ringgit.
Industry experts warn the policy will harm the automotive sector.
Mohamad Azhar Mohd Jamil said 90% of Malaysia's luxury cars are registered in Langkawi due to its tax-free status.
He warned the government would lose corporate tax and customs revenue, affecting dealers.

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Story summary

The Malaysian government ended tax exemptions for luxury vehicles priced above 300,000 ringgit in Langkawi, raising Ferraris and Lamborghinis from 2.5 million to 5 million ringgit.
Industry experts warn the policy will harm the automotive sector.
Mohamad Azhar Mohd Jamil said 90% of Malaysia's luxury cars are registered in Langkawi due to its tax-free status.
He warned the government would lose corporate tax and customs revenue, affecting dealers.