Taxes and subsidies

On January 1, 2019, the Malaysian government implemented a new policy on import duties and local taxes on motor vehicles. Under the policy, excise duty is set from 60% to 105%, depending on the vehicle model and engine capacity, for both locally assembled vehicles (referred to as Completely Knocked-down or CKD) and Completely Built-up (CBU) vehicles. The import duty is up to 30%, depending on the vehicle’s country of manufacture. Moreover, the vehicles’ sales tax is set at 10% for both CKD and CBU vehicles. The tables below show the duties and taxes on vehicles imposed by the government.