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**OMV**, or **Open Market Value**, can be understood as the cost price of a car when it leaves the factory. It is the value upon which excise tax is imposed. The Malaysian Ministry of Finance (MoF) uses a revised OMV calculation method to determine the excise duty payable on locally assembled (CKD) cars. This revised method expands the scope of automotive excise tax to include non-manufacturing costs. Previously, only manufacturing-related items were taxed, but the new regulation adds non-manufacturing items like sales costs, marketing and administrative expenses, and profit to the final OMV. With more items included in the OMV, the figure will naturally increase, which will attract higher taxes and result in more inflated car prices.

Good. Kerajaan prihatin.
To reduce traffic jam

Rafizi previous said nak turun HARGA kereta. Now he is a clown

Great 👍
Harga kereta naik ⬆️ 2026
No subsidi minyak T15 ❌ 2025
E-Invoice implemented 🤦 2025
Stop Jual LPG ❌ 2025
Apa lagi ❓

This post has been edited by jlkh760830: Dec 21 2024, 10:03 PM

In Malaysia, *excise duty* on *motor vehicles* is calculated based on the *engine capacity* (cc) and the *price* of the vehicle. The excise duty rates vary significantly depending on whether the car is considered a *local (domestic)* or *imported* vehicle, and the category of the car (e.g., passenger car, luxury car, 4x4, etc.).

*Excise Duty Rates on Cars in Malaysia:*

1. *For Passenger Cars (Non-Luxury Vehicles):*
- *For cars with engine capacity up to 1,600 cc*:
- The excise duty rate is *75%* of the *Open Market Value (OMV)* (the price at which the car is sold before taxes).

- *For cars with engine capacity above 1,600 cc but not exceeding 2,000 cc*:
- The excise duty rate is *85%* of the *OMV*.

- *For cars with engine capacity above 2,000 cc but not exceeding 2,500 cc*:
- The excise duty rate is *105%* of the *OMV*.

- *For cars with engine capacity above 2,500 cc*:
- The excise duty rate is *125%* of the *OMV*.

2. *For 4x4 Vehicles (SUVs and similar)*:
- The excise duty for 4x4 vehicles (which are classified differently) is also based on engine capacity but can have slightly different rates. Typically, 4x4 vehicles are taxed at rates similar to those for regular passenger cars.

3. *For Imported Cars (CBUs - Completely Built Units)*:
- Imported cars generally face higher excise duties compared to locally assembled cars (CKDs - Completely Knocked Down) because they are subject to both *excise duty* and *import duties*. Imported vehicles are often subject to *import duties of 10%*, in addition to the excise duties mentioned above.

4. *Hybrid and Electric Vehicles (EVs)*:
- *Hybrid vehicles* and *electric vehicles (EVs)* may enjoy reduced excise duties or even exemptions as part of the government's initiative to encourage environmentally friendly transportation.
- *EVs* may be eligible for *excise duty exemptions*, depending on the government policies in place at the time.

*Example Calculation of Excise Duty:*

Let’s assume you are buying a car with the following details:
- *Car Price (OMV)*: RM 50,000
- *Engine Capacity*: 1,800 cc (which falls under the 85% excise duty rate)

Calculation for excise duty:
- *Excise Duty* = 85% of RM 50,000 = *RM 42,500*

So, the excise duty on this car would be RM 42,500, which would be added to the total price of the car.

*Additional Taxes and Fees:*
Besides excise duty, there are other taxes and fees that car buyers in Malaysia must also consider, including:

- *Sales and Service Tax (SST)*: After the introduction of the SST in 2018 (replacing the Goods and Services Tax or GST), cars are subject to a *10% sales tax* on the price of the car.
- *Registration Fees*: A one-time fee for registering the vehicle with the *Road Transport Department (JPJ)*.
- *Road Tax*: An annual road tax fee based on the engine capacity and type of the vehicle.

*Conclusion:*
Excise duty on motor vehicles in Malaysia is generally between *75% to 125%* of the *Open Market Value (OMV)*, depending on the engine capacity. The rates are higher for cars with larger engines, and imported cars tend to face higher excise duties compared to locally assembled models. There may also be additional taxes such as *Sales and Service Tax (SST)*, *import duties*, and *registration fees* that contribute to the overall cost of the vehicle.

There's a reason why I stop buying new car...
Been paying excise duty from 75% - 125% and starting from OMV price are definitely ain't worthy

but it will be priced in, new or not?

75% duty alone is inflating the price which buyer need to take car loan and pay interest on too

Tak pe la, asal kan aku duduk dalam kereta sendiri masa jam.

yup, too many tax

Ada BN pasti Barang Naik.. Owaii

Just buy EV then as you enjoy excise duty exemption and you don't pay crazy amount of tax to govt for now.

stupid question.

Does this stupid tax implemented to motorcycle also?

Too many cars on the road already.