MOF Dismisses Claims of Sharp Vehicle Price Increase in 2026
KUALA LUMPUR, Feb 11, 2025 – The Ministry of Finance (MOF) has denied recent reports suggesting that vehicle prices will surge significantly in 2026 due to the full enforcement of the revised excise tax regulations under P.U.(A) 402/2019. According to a statement released today, MOF emphasized that these claims are misleading, as discussions are still ongoing with the Ministry of Investment, Trade, and Industry, along with key players in the automotive sector, to reassess vehicle valuation methods.
“MOF has not made any official decision on this matter,” the statement read.
Temporary Suspension of OMV Excise Duty Review
Earlier, a local financial news portal reported that the government had extended the review period for excise duties on locally assembled (CKD) vehicles until December 31, 2025. The report further suggested that after 2026, extensions are unlikely, which could lead to a potential rise in vehicle prices.
Additionally, automotive portal WapCar cited the Malaysian Automotive Association (MAA) confirming that the review of excise duties on Open Market Value (OMV) has been postponed until January 2026.
“This delay is only temporary. If the OMV excise duty review moves forward, vehicle prices could see an increase of 10 to 30 percent,” the report stated.
MOF assured that any decision made will carefully consider consumer interests while striving to maintain a fair, transparent, and consistent tax structure within the nation’s automotive industry.
