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Langkawi’s duty-free overhaul: RM300,000 vehicle price cap and RM10,000 spending limit

KUALA LUMPUR, Oct 26 — The duty-free status of Langkawi is not intended to allow wealthy individuals to keep luxury vehicles on the island for several years before bringing them...

Malay MailMalay Mail2026-10-26 17:24查看原文 ↗

KUALA LUMPUR, Oct 26 — The duty-free status of Langkawi is not intended to allow wealthy individuals to keep luxury vehicles on the island for several years before bringing them into the Principal Customs Area to avoid paying higher taxes.

Deputy Finance Minister Liew Chin Tong said changes to the duty and tax exemption policy for vehicles were introduced not only to address revenue leakage but also to discourage such business practices.

“At its core, this is a business model that we do not wish to promote, and we hope this policy will be accepted by all citizens,” he said in reply to a supplementary question from Datuk Mohd Suhaimi Abdullah (PN-Langkawi) during the Special Chamber session in the Dewan Rakyat today.

Mohd Suhaimi had sought clarification on the government’s review of the RM300,000 threshold for vehicle tax exemptions in Langkawi and called for stricter enforcement to prevent abuse of the facilities.

Liew acknowledged that some business operators would be affected by the policy but stressed that local residents would not be impacted.

Earlier, he said that, effective Jan 1, 2026, duty and tax exemptions for vehicles would be capped at a value of RM300,000 to prevent wealthy individuals from abusing the incentives to acquire luxury vehicles.

He said the threshold was reasonable and sufficient to meet the needs of local residents, car rental operators, taxi services and commercial vehicle users, while ensuring that the exemptions remained focused on vehicles used for daily activities and local business operations.

“Although there have been changes to the tax exemption policy for certain products on Langkawi Island, its status as a Duty-Free Island remains in effect,” he added.

Meanwhile, Liew said the government had announced in Budget 2027 an increase in the eligibility threshold for duty-free purchases by visitors and tourists from RM1,000 to RM10,000.

He said the revised threshold covered several additional categories of goods, including fashion accessories such as watches and handbags, electrical and electronic items, and textiles, while excluding tobacco products and motor vehicles.

“Raising the value limit allows both domestic and international tourists to spend more, which in turn generates a direct economic spillover for duty-free shop owners and local entrepreneurs in Langkawi.

“At the same time, the requirement for a minimum 48-hour stay will boost the hospitality sector, homestays, transport services, and the food and beverage industry, ensuring that economic benefits are widely enjoyed across the island’s entire tourism ecosystem,” he said.

Liew added that the government was also updating and expanding the list of Langkawi-made goods eligible for import duty exemptions when brought into the Principal Customs Area, increasing the number of items from 23 to 29.

He said the measure would particularly benefit micro, small and medium enterprises (MSMEs) in Langkawi.

Both measures will take effect on Jan 1, 2027, he added. — Bernama

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吉隆坡，10 月 26 日讯——兰卡威的免税地位并非旨在让富人将豪华车辆留在岛上数年，然后再将其开进主要关税区以逃避缴纳更高的税款。

财政部副部长刘镇东表示，对车辆关税和免税政策进行调整，不仅是为了解决税收流失问题，也是为了遏制此类商业行为。

“从本质上讲，这不是我们想要推广的商业模式，我们希望这项政策能够被所有公民接受，”他在今天国会下议院特别会议上回答拿督莫哈末·苏海米·阿卜杜拉（国盟-兰卡威）的补充提问时说道。

莫哈末苏海米曾要求政府澄清对兰卡威车辆税豁免30万令吉门槛的审查，并呼吁加强执法以防止滥用这些便利。

刘先生承认这项政策会对一些企业经营者造成影响，但他强调当地居民不会受到影响。

他早前曾表示，自 2026 年 1 月 1 日起，车辆的关税和税收豁免额度将限制在 30 万令吉以内，以防止富裕人士滥用优惠政策购买豪华车辆。

他表示，这一门槛合理且足以满足当地居民、汽车租赁运营商、出租车服务和商用车用户的需求，同时确保豁免仍然集中在用于日常活动和当地商业运营的车辆上。