MoF Dismisses 2026 Car Price Hike Reports, Says Vehicle Valuation Review Underway  

KUALA LUMPUR, Feb 11 (Bernama) -- The Ministry of Finance (MoF), together with the Ministry of Investment, Trade, and Industry (MITI) and the automotive industry, is reviewing the vehicle valuation method to ensure that tax is imposed fairly, neutrally, and consistently.

Regarding reports about a significant increase in vehicle prices expected starting in 2026 due to new excise tax regulations under P.U.(A) 402/2019—Excise Tax Regulations (Determination of Value of Locally Produced Goods for Excise Tax Purposes, MoF clarified that these reports are inaccurate.

“MoF has yet to make a final decision.

“MoF, together with 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,” it said in a brief statement today.

Local financial portal The Edge, recently reported, citing industry sources, that the automotive industry has secured another extension on the proposed revision of excise duty for locally assembled (completely knocked down) cars until Dec 31 this year.

Despite the current respite, however, there will likely be no further extensions from 2026, which suggests that prices are likely to increase significantly from 2026, it said.

Meanwhile, the local automotive online portal Wap Car reported that the Malaysian Automotive Association confirmed that the open market value (OMV) excise duty revision will be deferred to January 2026. 

“The postponement of the revised OMV excise duties is only for a year, and if implemented, it could lead to a price increase of between 10-30 per cent,” it reported in January this year.

-- BERNAMA