CBU car prices in Malaysia going up due to new way of calculating tax and duties as of January 2025 – MAA

CBU car prices in Malaysia going up due to new way of calculating tax and duties as of January 2025 – MAA

Prices of fully imported (CBU) vehicles sold in Malaysia can be expected to increase as the Malaysian government is using a new method of calculating taxes imposed on each imported vehicle, the Malaysian Automotive Association has stated during its 1H 2025 performance press conference today.

The price hikes have in fact been in effect from the beginning of the year, as the government has done away with the docket pricing method of calculating taxes that are to be applied to each imported vehicle.

“Since January this year, the government has decided to cancel all the docket prices. Earlier, the price structure for new cars was based on [docket pricing], where the application will be fixed for that particular model until that model is changed. All the taxes – the import duty, excise duty and sales tax will be paid based on warta kerajaan, or gazetted pricing,” said MAA vice president Syed Ahmad Muzri Syed Faiz.

Therefore from January, all docket pricing has been cancelled in line with the World Trade Organisation (WTO) agreement, and thus the tax for each imported car is calculated on a per-unit basis, said Syed Muzri. Car companies selling fully imported (CBU) cars are affected the most, especially those dealing in lower-volume models, as customs clearance and taxes paid is now based on each individual unit, he added.

CBU car prices in Malaysia going up due to new way of calculating tax and duties as of January 2025 – MAA

“This is for the calculation of import duty, excise duty and sales tax compounded. The formula is fixed, it is just that the gazetted pricing has been abolished and replaced with transacted value,” Syed Muzri continued.

In terms of the percentage figure for the price increases observed, the number depends on a range of factors, such as vehicle model, and the currency exchange factor as different companies purchase their vehicles using different currencies, depending on the brand, he added.

“So when you apply [gazetted pricing], it was that price that was fixed as gazetted forever, until [the model is replaced]. However for transacted value, the current exchange rate, even between January and July, is a different exchange rate. So, that is one impact,” he continued.

CBU car prices in Malaysia going up due to new way of calculating tax and duties as of January 2025 – MAA

Based on the vehicle’s FOB price when it arrives in Malaysia, that is compounded with import duty at 30%, excise duty ranging from 60% to 105% depending on its powertrain, and sales tax of 10%, Syed Muzri said. “So, that gap is variable, depending on multiple factors,” he said.

However, how is it that the increases only affect new cars, rather than also affecting grey import cars, paultan.org asks?

“I think it is impacting everybody, but the scale of the impact could be different. Parallel imports [channels] for example, bring in used cars of different value, because [for example] it could be a 13-month-old car. If you look at the AP policy here in Malaysia, the cars can be 13 months to 60 months [of age], whereas new cars are [brand new], so there is always a gap,” Syed Muzri responded.

So, if you’ve wondered why a new Porsche 911 now starts from RM1.43 million in 2025, this probably has something to do with it.

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Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • ahhookpin on Jul 16, 2025 at 7:49 pm

    looked up 911 prices from old paultan.org articles. damn from 870k in 2016 to 1.15 million in 2019 to 1.4 million in 2025

    Like or Dislike: Thumb up 21 Thumb down 0
    • Nomerz on Jul 16, 2025 at 8:26 pm

      ini baru Price War with Bomb,

      consumer suffering from price war.

      Like or Dislike: Thumb up 5 Thumb down 1
    • Gibran on Jul 17, 2025 at 4:20 pm

      Yeah i just don’t see how the price can go up so crazy. Even without this docket pricing hasn’t the tax rate stayed essentially the same?

      Like or Dislike: Thumb up 1 Thumb down 0
  • Trump Tariff we follow on Jul 16, 2025 at 8:32 pm

    Just like Trump….see Msia follow Trump Tariff, so why do we complaint?…hahahaha…guess even Madani follow Trump!

    Like or Dislike: Thumb up 13 Thumb down 2
    • gotta pump those rookie numba up on Jul 17, 2025 at 4:00 am

      trump tarrif is rookie numbers compared to our 100+% import duties

      Like or Dislike: Thumb up 19 Thumb down 0
    • john is otak batu on Jul 17, 2025 at 7:36 am

      In fact trump should hit M’sia with 105% tariff back on M’sia not 25%. For years these taxes have hinder foreign brand from competing in M’sia’s market

      Like or Dislike: Thumb up 17 Thumb down 2
  • Kenny Gan on Jul 16, 2025 at 9:44 pm

    So when the duty exemption for imported EVs end the import duty will be 30% + 60% excise duty (min) and 10% sales tax.

    This means that an EV selling for RM120K now with 0% import duty, 0% excise duty and 10% sales tax has before sales tax price of 109K.

    Next year its price will be 109K x 1.3 x 1.6 x 1.1 = 249K. That’s more than double!

    We can expect the market for Chinese EVs to disappear. Hopefully the companies will still be around for owners to get service and spare parts so buy at your own risk.

    Like or Dislike: Thumb up 16 Thumb down 0
  • plakad on Jul 16, 2025 at 10:43 pm

    i very moron cum retarded one, that means proton emas cub model from geri should be very cheap, a lot cheaper if if not cos of tex hor.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Timbalan Presiden binti Presiden on Jul 17, 2025 at 5:56 am

    Anwar menang rakyat senang

    Like or Dislike: Thumb up 3 Thumb down 10
  • Sabri on Jul 17, 2025 at 6:04 am

    Trump was and will always be right to tariff malaysia. What a load of nonsense to make a few people rich at the expense of the rakyat.

    Like or Dislike: Thumb up 19 Thumb down 2
  • wat4mau on Jul 17, 2025 at 11:44 am

    came for Paultan.org, but stayed for the comments.

    Like or Dislike: Thumb up 5 Thumb down 0
  • Jerry Sirat on Jul 17, 2025 at 3:10 pm

    Where is Rafizi Ramli promise of myvi 20k and hari ini menang, minyak turun.

    Like or Dislike: Thumb up 3 Thumb down 0
  • alibaba on Jul 17, 2025 at 3:37 pm

    apa lagi takut? those taikun still got purchasing power, just tat me as normal ppl can’t get good stuffs, dun blame us if i having accidents, because i using high price junk for travel

    Like or Dislike: Thumb up 3 Thumb down 0
  • Turoi Manuk Kinumombob on Jul 18, 2025 at 7:26 am

    Is this a true reflection of the mahaldahni government?

    Like or Dislike: Thumb up 0 Thumb down 0
  • George on Jul 18, 2025 at 7:52 am

    Gas is expensive in Thailand coz motor vehicles are cheaper. However it’s the opposite in Msia. So there’s nothing to gloat about our cheap gasoline

    Like or Dislike: Thumb up 2 Thumb down 0
  • Minister Tax on Jul 19, 2025 at 3:11 pm

    This is getting ridiculous as we have to consider SST that’s imposed on the vehicles. Car prices have been soaring, and the rakyat are suffering. Please reduce car tax to make cars more affordable, they are a necessity to the rakyat.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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