Prime Minister Anwar Ibrahim has announced that luxury vehicles valued over RM300,000 will no longer benefit from the vehicle tax exemptions in Langkawi and Labuan, starting 1 January 2026.
This move aims to prevent wealthier individuals from exploiting the tax-free benefits of registering luxury vehicles on the island, which allows them to purchase high-end cars at significantly lower prices.
Anwar said the tax and duty exemptions were meant to be enjoyed by those living in Langkawi, not rich individuals from the Peninsula.
Vehicles registered in Langkawi are completely exempt from import and excise duties. This brings the cost of luxury cars down significantly — models that would otherwise cost millions.
The practice is so common in Malaysia that some brands – particularly those with high-end supercars — even list tax-free prices for buyers who intend to register their vehicles in Langkawi. While these cars are registered on the island, they can still be driven on the mainland for up to 90 days a year.
