Malaysia's Ministry of Finance (MoF) has extended the implementation of the Open Market Value (OMV) excise duty revision for locally assembled (CKD) vehicles until December 31, 2026. The latest deferment means there will be no additional excise duty imposed under the revised OMV calculation until the end of the year.
The extension was granted to allow the government and automotive industry stakeholders more time to finalise the calculation methodology and ensure it is applied fairly across all manufacturers. Different carmakers currently use different business reporting methods, making the process more complex than initially expected.
According to the Malaysian Automotive Association (MAA), the revised OMV formula is still expected to have very little or no impact on the selling prices of CKD vehicles once it comes into effect.
The OMV revision introduces a new way of calculating excise duty by including non-manufacturing costs such as sales, marketing, administrative expenses and company profit. While this could potentially increase the taxable value of CKD vehicles, the government has previously stated that the changes are not expected to significantly affect the majority of Malaysian consumers.
The OMV revision has been postponed multiple times since it was first scheduled for implementation in 2020, with the latest extension pushing its rollout to December 31, 2026.
We believe in treating our customers with respect and fairness. That is why we offer transparent pricing and upfront information about every vehicle, so you can make an informed decision.
Posted by MyCarSearch on 30 Jun 26
Malaysia