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The finance ministry has revealed that RM26.47 billion in import and excise duties on motor vehicles and motor vehicle spare parts (RM25.15 billion and RM1.32 billion respectively), and RM9.83 billion in road tax, have been collected between 2022 and 2024, Bernama reports.
“Import and excise duties are indirect tax revenues collected by the customs department under the provisions of the Customs Act 1967 and the Excise Act 1976. The revenue collected is channelled into the consolidated fund and used to finance various government development programmes, projects and operating expenditures,” the finance ministry said in a written reply to Temerloh MP Salamiah Mohd Nor’s query on the same, published on the Dewan Rakyat portal.
According to the finance ministry‘s ‘Fiscal Outlook and Federal Government Revenue Estimates‘ report, total government revenue from vehicle import duties, excise duties and sales tax is estimated to be RM11.1 billion in 2025. This is expected to rise 4.5% to RM11.6 billion next year.
The 2025 estimates can be broken down into RM630 million in import duties, RM3.97 billion in CKD excise duties (cars plus motorcycles), RM3.27 billion in CBU excise duties (cars), RM2.11 billion in CKD sales tax (passenger vehicles plus commercial vehicles) and RM1.13 billion in CBU sales tax (also passenger vehicles plus commercial vehicles).
Also provided are the 2026 estimates, and the above table shows that while import duty revenue is not expected to change much and excise duty revenue is only expected to grow by 2.3% (despite the anticipated OMV/402 excise duty revision?), the government expects to collect 10.4% more sales tax next year.
One thing that will change come next year is that fully-imported (CBU) EVs will begin contributing to import and excise duty revenues. Currently, CBU EVs are import- and excise-duty free, but they are subject to sales tax, and EVs still make up a very small piece of the Malaysian pie.
So the projected 10.4% rise in sales tax revenue has us wondering. It is possible that the relatively high quantum (around RM3 billion) and projected increase is because sales tax is applied after all the duties, which creates a compound effect. Another possible explanation is a forecasted increase in total industry volume (TIV) for 2026 over 2025.
Now, while RM11 billion in revenue may sound like a lot, remember that the government typically has to spend around RM20 billion annually in RON 95 petrol subsidies (Budi Madani RON 95 minuses just RM2.5 billion-RM4 billion from that figure). So, cheap cars or cheap petrol? Pick one, because you can’t have both!
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Cheap petrol hv bigger impact on other area of economy. Car price can lower by means of open market competition like what Chinese EV is doing among themselves
So, cheap cars or cheap petrol? Pick one, because you can’t have both!
We can have both.
Cheaper car taxes plus cheaper Ron 95.
The high car taxes with hire purchase are the main killer..rakyat r saddled with huge HP loans .
Just one Turun mogok…someone panic ,n turun harga Ron 95.
I read those greenies are planning somemore Turun events.
We as rakyat,welcome lower car taxes n subsidised petrol.
If Madani can give both,their chances of a second term are better.Who doesnt want lower cost of living ?
later malaysia debt-ridden with trillions debt,kintakunte dont come in complain again ok.
t20 generally is the worst off, hit by impending higher EV car prices next year, hit by higher TnB electric rates when charging their EV at landed home, hit by RM3.1 RON97 when refueling their bmw M4 or AMG45 because engine will ping premature detonation if use budi95.
The T20 wasn’t built in a day , newbie. The petrol and electric fees has been rising over the decade. Stop acting like it was born yesterday. You seriously need some finance education on how inflation works, so that you can build your way up to t20 instead of waiting for government subsidy like a useless trash left under the sofa.
he was being sarcastic
I take cheaper cars over fuel
tongkat
The road tax for small capacity engines should be increased and maximum road tax for big capacity engines should be limited to RM3k per year.