Vehicle Valuation Method Still Under Review - MOF

The Ministry of Finance (MOF) is still looking into the open market valuation (OMV) calculating technique outlined in Excise Tax Regulations PUA 402. These regulations, also known as P.U.(A) 402/2019-Excise Tax laws (Determination of Value of Locally Produced Goods for Excise Tax Purposes), may have an impact on vehicle prices.

While a considerable increase in vehicle pricing is projected to begin in 2026 due to the introduction of new excise tax legislation, the MOF has yet to make a final decision on the matter, it said in a statement issued today.


The ministry said: “In reply to news reports regarding the anticipated significant increase in vehicle prices following the enforcement of the regulations, clarified that: “MOF, together with the Ministry of Investment, Trade and Industry (MITI) and the automotive industry, is currently reviewing the vehicle valuation method to ensure that the imposition of tax is carried out in a fair, neutral and consistent manner.”


News reports about a final extension on the excise duty modification for locally assembled (CKD) cars until December 31 have sparked concerns about potential price increases. The revision was initially set for January 1, 2020, but was delayed three times due to concerns from the automotive industry.

The open market value, which includes both manufacturing and non-production costs, will be used to determine a vehicle's worth in the revision. Shamsor Zain, the head of the Malaysian Automotive Association, reportedly predicted that the cost of CKD vehicles would increase by 10-30% starting in 2026 due to the increased taxable components.