MOF: RM36.3B Collected from Vehicle Taxes Over Three Years

Malaysia’s automotive sector continues to be a major contributor to government coffers, with RM36.3 billion collected from vehicle-related taxes and fees between 2022 and 2024, according to figures released by the Ministry of Finance (MOF).

According to The Edge, in a written parliamentary response, the MOF revealed that RM26.47 billion of this total came from import and excise duties imposed on motor vehicles and spare parts. Of that, RM25.15 billion was derived from duties on vehicles, while RM1.32 billion came from spare parts.

The ministry explained that these indirect taxes are collected by the Royal Malaysian Customs Department under the Customs Act 1967 and Excise Act 1976, before being channelled into the Consolidated Fund. The revenue supports various government development programmes, public projects, and operating expenditures.

Separately, data from the Road Transport Department (RTD) showed that motor vehicle licence fees contributed an additional RM9.83 billion over the same period, reflecting consistent ownership and road usage nationwide.

The figures were disclosed in response to a parliamentary question from Salamiah Mohd Nor (PN–Temerloh), who had asked for the total collection of road tax, import duties, and excise duties on vehicles between 2022 and 2024.

While the numbers reaffirm how integral the automotive sector is to Malaysia’s fiscal structure, analysts note that collections could climb even higher once existing tax incentives are phased out.

This includes the ongoing tax breaks for CBU electric vehicles (EVs), covering import and excise duties, which are set to expire soon with a review reportedly underway as part of Malaysia’s next phase of EV policy incentives.

If exemptions lapse without replacement measures, industry observers say vehicle-related tax collections could surge, albeit at the risk of dampening demand and slowing EV adoption. For now, the government maintains it will introduce mitigation steps to balance fiscal needs with affordability and industry growth.