PETALING JAYA: Luxury vehicles valued at over RM300,000 in Langkawi and Labuan will no longer be entitled to vehicle tax exemptions starting January next year, says Prime Minister Datuk Seri Anwar Ibrahim.
Anwar said this was due to alarming reports of luxury vehicle owners who have abused the vehicle tax exemptions in these states.
"Luxury vehicle owners have long taken advantage of vehicle tax exemptions in Langkawi and Labuan, which the rich have used to avoid paying their rightful taxes.
"To address this leakage, the government proposes that vehicle tax exemptions in these areas be limited to vehicles valued at no more than RM300,000, effective January 1, 2026," he said while announcing Budget 2026 in Dewan Rakyat on Friday (Oct 10).
