Malaysia 2026: New Vehicle Tax Rules for Designated Areas

Effective 2026, any vehicle entering Labuan or Langkawi with a value exceeding RM300,000 will be required to pay Sales Tax

Key Highlights

From 2026, sales tax will be imposed on vehicles valued above RM300,000 entering Labuan or Langkawi, under the following categories:

1. Fully Built-Up (CBU) Imported Vehicles

Vehicles imported under Customs Tariff Act 2025, Schedule I, tariff codes 87.03 and 87.11, with a CIF value exceeding RM300,000.

2. Locally Manufactured Vehicles Transported In

Vehicles manufactured in Malaysia’s principal customs area and subsequently transported to Labuan or Langkawi, with a selling price exceeding RM300,000 (excluding excise duty, sales tax, road tax, and vehicle insurance).

**Last Updated on 15.01.2026