For years, Langkawi (and for some …. Labuan) has been where the Malaysian super rich car enthusiast and collectors parked their TAX FREE supercars and sedans to be aged (to reduce import taxes) and after a few years (3 years) a nominal small import tax is charged and the super rich owners enjoy lower priced luxury sport cars.
We have asked many times …. why can’t this privilege be extended to all Malaysians, allowing for a Toyota Yaris or Honda Civic or Mitsubishi Outlander or BMW 118i or VW Golf GTI or Lexus NX or even a Suzuki Swift be sold tax free to average Malaysians?
Why only the super rich enjoy this tax free haven and not the rest when the super rich Malaysians can easily afford to pay the import taxes in full?
This ‘push’ NOW comes super car distributors who want to increase their profits and keep the sales up.
Recently, the Chief Minister of the State of Kedah (Langkawi is governed by Kedah), stated that the state expects the list of duty-free items in Langkawi Island to be increased to attract tourist presence to the once popular island.
He added that the absence of luxury car tax exemption is one of the reasons for the deterioration of Langkawi attraction at this time. We all know that this is not the ONLY reason and the real reasons are clearly seen in the success of Bali, Lombok, Phuket and more where tax free supercars DO NOT bring in tourist dollars.
“When rich people come (come), buy expensive cars with cheap price, they spend in Langkawi. “They store the luxury tax free car in one of the many storage facilities on the island. So, there is a spillover (overflow) on economic sector in Langkawi” the Minister said.
Actually, most tax free luxury car owners prefer to just ‘ship’ their cars via ferry and then on a flat bed truck to their 5 star homes in Klang Valley or Johor or Penang and drive their TAX FREE supercars for the allowed 3 months in a year and then send the cars back for storage.
So, with the huge TAX FREE savings, most buyers have 3 to 4 different supercars stored in Langkawi at the same time and they happily rotate the usage in Semenanjung Malaysia in 12 months.
What a great way to own and drive luxury cars in Malaysia …… for the very select few.
As of January 1, 2026, the Malaysian government under Prime Minister Datuk Seri Anwar Ibrahim removed tax exemptions for luxury vehicles priced above RM300,000 in duty-free zones like Langkawi and Labuan. This decision, part of Budget 2026, aimed to close a loophole used by the wealthy for tax evasion and to ensure fairness. The policy stopped the misuse of tax exemptions where, for over 40 years, luxury cars were stored in tax-free islands to avoid huge import duties.
So, should our Prime Minister reverse the rule and allow TAX FRE luxury cars to be stored and used by super rich Malaysians. We appreciate your comments and suggestions.
Meanwhile, here below we explain how the system works.
Now, it is suggested that you do this for 3 years to get the best results.
After ONE (1) year of Langkawi storage your McLaren import car tax will be reduced by 30 per cent. (which is estimated about RM360,000).
After TWO (2) years of Langkawi storage your McLaren import car tax will be reduced by 30 +15 per cent which is a total of 45 per cent. (which is estimated about RM540,000).
After THREE (3) years of Langkawi storage your McLaren import car tax will be reduced by 30 + 15 + another 15 per cent which is a total of 60 per cent. (which is estimated about RM720,000).
So, by the end of the 3rd year you can bring your McLaren back and pay about RM480,000 tax and enjoy driving your supercar. Take note, that over the three years in storage, you have already driven the car 90 days a year, so for 90 days every year you had the luxury of driving the car in your city while the cars’ tax value is reducing while the majority of Malaysian car owners buy a car with full import tax included which allows the Malaysian government to build schools, hospitals, provide BUDI95, increased out state roads and provide for the population food and necessary subsidies.
