Malaysian Prime Minister wants higher luxury car taxes implemented asap.
It looks like ‘luxury car’ selling prices will be rising very soon, maybe as soon as 2024, as people close to matter have shared with us.
It seems that the Malaysian Prime Minister just last week requested the Ministry Of Finance (MOF) and the Royal Malaysian Customs to look into raising the duties for luxury vehicles in Malaysia.
Then, on Tuesday (21st March 2023) this week the Malaysian Automotive Association (MAA) was invited to have a sit down discussion with Jabatan Kastam Di-Raja Malaysia (JKDM) at Suasana PJH, Blok A, Presint 2, Putrajaya.
Then on the following day, Wednesday (22nd of March 2023) the luxury cars brands in Malaysia, and surprisingly, the luxury motorcycles brands as well were called into JKDM to have a first round of talks on this new request by our Prime Minister.
Interestingly, NO Japanese car manufacturer was called in (Lexus included) for this discussion. The big European brands and motorcycles brands (including MASAAM and PEKEMA) were all in attendance and the discussion brought out a lot of negative reaction from the attending car distributors and private importers as they were already being imposed various import duties for their local assembled vehicles and also fully imported luxury new and used vehicles.
Meanwhile, with this proposed added import duties for luxury cars and bikes, selling prices will move up and the Japanese, Chinese and Korean brands will be in a much better position to increase their sales numbers.
Right now this is all just in discussion and will affect even PEKEMA (AP Holders) as their imported used vehicle duties will also be increased in line with brand new luxury cars.
This will also move the used car market as there are plenty of 6 to 10-year-old luxury cars that have been depreciated by more than 50 percent from their new value and with rising duties, their used values will stagnant a year or two or might even move up in value.
This is our humble suggestion to MOF, JKDM and also MITI. Look into the hundreds of million Ringgit LOST every year to duty free super luxury cars that sit and age in Langkawi and also Labuan.
This is a much better way to collect tax revenue rather that add more import duties on luxury cars and motorcycles as it is will be difficult to define ‘luxury’ when even compact cars are called luxury and even some simple motorcycles are called luxury lifestyle.
With Langkawi duty free luxury and supercars, we know they are all super luxury vehicles and their buyers can surely afford to pay the full price with all duties paid. Right?
