#Belanjawan2026: Vehicle Tax Exemption In Langkawi And Labuan To Be Limited Starting Next Year
The prime minister said the exemption has been exploited for years.
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Finance Minister Datuk Seri Anwar Ibrahim has announced that the vehicle tax exemption in Langkawi and Labuan will be restricted starting next year
The government has noted that certain luxury vehicle owners have for some time been exploiting the vehicle tax exemption in Langkawi and Labuan.
To address this loophole, the government plans to limit the vehicle tax exemption in these regions to vehicles with a value not exceeding RM300,000, with the new rule coming into force on 1 January 2026.
According to Anwar, who is also the prime minister, the exemption has been misused in past years
The tax exemption was originally meant to benefit the local residents.
He said, however, it has been exploited by certain wealthy individuals who purchase cars tax-free and hold onto them for years until their value depreciates. Anwar added that the practice amounts to tax evasion.
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