Malaysia Again Delays OMV Excise Rule Revision; CKD Car Prices Frozen Until Mid-2026

2025/12/26
Taxation
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Malaysia
The Ministry of Finance informed the Malaysian Automobile Association on December 23 that the proposed revision to the Consumption Tax Value for Locally Produced Goods under PU(A)402/2019, originally set to take effect in January 2026, will be postponed for another six months until July 1. If implemented, the new regulations will include CKD vehicle sales, administrative, and profit costs in the consumption tax base, potentially increasing end prices by at least 10%. This marks the fifth extension of the regulation since its gazetting in 2019, with no stated reason provided this time. MAA stated that the government is refining the adjustment mechanism and emphasized it will not hinder local production investments, while CKD prices will remain unchanged until the end of June 2026.
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Paul Tan
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