MMH2 Car Import Tax Incentive to be discontinued in 2018?

http://www.mm2h.gov.my/index.php/en/ben … port-a-car

"The Government has decided to abolish the tax incentive on the purchase of a new locally assembled vehicle or the import of a pre-owned private vehicle into Malaysia under MM2H Programme. Therefore, this tax incentive will be terminated effective from 1 January 2018."

If I'm reading this correctly, it says the Malaysian government's MMH2 program is stopping the tax-free import on personal cars or buying new cars in Malaysia next year for people using this visa.

I'm wondering if anyone has not yet seen this because it seems like a pretty big deal as far as a perk goes but I haven't seen any recent posts here (or since the announcement was made last month) mentioning it (or could be in the wrong forum).

Maybe I'm reading it wrong which is why no one is talking about it (could be these old eyes).  Anyone have any input on this or is applying to the program currently that knows any information first hand?

Yes, this has been known for a couple of months. It's been on this blog already under the MM2H thread at the top of the list of discussions.

The range of locally-assembled vehicles is not that wide and the cost of transporting existing vehicle and any technical changes needed (problems arise because of fuel standards on occasion) tend to mean the interest is not enormous. From what I gather a lot of people prefer to buy a second-hand car where the tax-free status does not control the onward sale.

Thank goodness, I thought it was my eyes, lol.  I still saw other threads where people discussed cars and a popular response was always "just import a car, it's tax free" somewhere in there, but never a "no, they are doing away with that program" as a follow-up.

Thanks for the reply!

One little issue that arose recently reported in conjunction with imports of Audi, is local garages charge a 40% premium on service and repairs when they have been brought into Malaysia as a "parallel import".  There is no such thing as a free lunch..... :-)) There is also import duty to pay on all spares for non locally assembled vehicles...

Wah, I didn't know this.  I've just completed mine for a Fortuner. 

My question was related to this.  All the published literature quotes the 2.7 Toyota Fortuner price at around RM117.  I just had a meeting with the car sales people here in Sarawak & the final bill was RM145!  Apparently the published price is for the 'base' car & does not include 'necessary accessories' like seats & lights!!!

I am dubious about the whole thing & just wanted to know if other had the same experience regarding the price.

I am happy for the discount but it's blown my planned budget,

Thanks

I guess you made your MM2H application in Sarawak - https://www.pwc.com/gx/en/services/peop … ctices.pdf (information for future readers).

Checking on Carlist and mudah.my might be helpful.

I did see some car prices for MM2H purchasers and will try and find them again (don't know how up-to-date the info is - but it might be a guide). - http://www.joy-stay.com/FrequentlyAsked … anchor_753

Thanks Gravitas

I think this is just poorly displayed/misrepresented information that was published.  I took it at face value & got caught out.  I just wanted to understand if other people had experienced the same misunderstanding & also to prepare others.

Given the original post, I guess that won't be an issue

Update:
The Goverment has decided to abolish the tax incentive on the purchase of a new locally assembled vehicle or the import of a pre-owned private vehicle into Malaysia under MM2H Programme. Therefore, this tax incentive will be terminated effective from 1 January 2018. However, Ministry of Finance will give special consideration to MM2H participant with first MM2H’s Visa approved beginning 1 January 2017 until 31 December 2017 to submit complete application via Sistem Maklumat Pengurusan Cukai / Sistem Maklumat Pengurusan Cukai Kerajaan Malaysia not later than 31 December 2018.

http://www.mm2h.gov.my/index.php/en/ben … port-a-car

New topic