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What Are Malaysians Really Paying for Tax on Imported Cars?

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The Truth About Taxed Overseas Cars in Malaysia - WORLD OF BUZZ 2
Featured image for illustration purposes only | Source: YouTube

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Though Malaysia’s public transportation infrastructure is improving bit by bit, we still have a long way to go in terms of ease of connectivity for most people. Whatever the case, most Malaysians are still purchasing cars to make their lives easier and we all know how expensive imported cars can get.

The Truth About Taxed Overseas Cars in Malaysia - WORLD OF BUZZ 7

So why are they so expensive?

It is the excise tax. Excise tax is an additional tax that needs to be paid when purchases are made on a specific item or good. In this case, it would be on the imported car.

Here’s a look at just how much excise tax you can be charged for passenger vehicles in Malaysia.

What are Malaysians Really Paying for Tax on Imported Cars? - WORLD OF BUZZ
Source: MAA

To illustrate just how expensive this can really be, we’ve put our own comparison together.

Just a heads up, the prices does not include all the other expenses involved when purchasing a car such as licence plate payment or road tax. Also, there are no specific criteria for the cars selected for comparison.

 

Luxury options

Porsche 911 GT3

The Truth About Taxed Overseas Cars in Malaysia - WORLD OF BUZZ 1
Source: Porsche

CountryGermanyMalaysia
Price of vehicleRM625,390From RM829,268
Tax rate19%105%
Tax priceRM 118,825RM870,732
Total priceRM 744,212RM1,700,000

 

Lexus LC 500

The Truth About Taxed Overseas Cars in Malaysia - WORLD OF BUZZ 3
Source: Lexus

CountryJapanMalaysia
Price of vehicleRM479,356RM940,000
Tax rate8%105%
Tax priceRM38,348.50RM987,000
Total priceRM517,705RM1,927,000

 

2017 Aston Martin DB11

The Truth About Taxed Overseas Cars in Malaysia - WORLD OF BUZZ 4
Source: Car And Driver

CountryUnited KingdomMalaysia
Price of vehicleRM867,566RM975,610
Tax rateFirst year rate105%
Tax priceRM10,990 RM1,024,390
Total priceRM878,558RM2,000,000

 

Summary

If you compare the actual price of the vehicle, the amount that you would pay isn’t too bad. It comes down to the total price though and this is affected by the excise tax. Most of the countries have local taxes of less than 20% whereas Malaysia has an excise tax of 105%.

Crazy right? This results in the total end price not just doubling but for the Lexus model, coming up to almost triple of the price you would pay for it in Japan!

 

Affordable options

Honda Civic Sedan 1.5

The Truth About Taxed Overseas Cars in Malaysia - WORLD OF BUZZ
Source: Honda Malaysia

CountryJapanMalaysia
Price of vehicleRM90,786RM124,092
Tax rate8%75%
Tax priceRM7,263RM93,070
Total priceRM98,049RM217,160

 

Haval H2

The Truth About Taxed Overseas Cars in Malaysia - WORLD OF BUZZ 5
Source: Haval

CountryChinaMalaysia
Price of vehicleRM90,786RM81,814
Tax rate7.5%75%
Tax priceRM4,617 RM61,307
Total priceRM95,403RM143,121

 

Volkswagen Golf TSI Comfortline

The Truth About Taxed Overseas Cars in Malaysia - WORLD OF BUZZ 6
Source: Volkswagen

CountryGermanyMalaysia
Price of vehicleRM97,560RM149,888
Tax rate19%75%
Tax priceRM18,536RM112,416
Total priceRM116,096RM262,304

 

Summary

As compared to when you’re purchasing a luxury car, these cars are a bit more on the affordable side. With a tax rate of 75% though we’re still on the higher side when it comes to being taxed.

One interesting thing to note here is how the Haval H2 is actually cheaper here in Malaysia but because of the taxes, Malaysians still end up paying more than their Chinese counterparts. T_T

 

And there you have it! Never knew exactly how much tax you’re paying for an imported car do you! Well now you do!

 

Also read: 5 Important Things to Take Note Of If You Plan to Get a Secondhand Car in Malaysia

5 Things to Take Note Of If You Plan to Get a Secondhand Car in Malaysia - WORLD OF BUZZ 6

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