According to a message from the President of the Malaysian Automobile Dealers Association, the government will start calculating the OMV in a new way from 2023, which will lead to an increase in the price of locally assembled vehicles in 2023.
The new Open Market Value (OMV) will include the cost of non-manufacturing and will result in an 8% to 20% increase in the price of locally assembled vehicles.
The previous method of calculating the domestic tax was to exclude non-manufacturing related costs and therefore the domestic tax payable on locally assembled vehicles was lower.
In 2019, the former government proposed a framework for restructuring the vehicle domestic tax structure, which was to be implemented in 2020, but was subsequently postponed to the end of 2022, and will come into effect in 2023.
In addition, our country will also resume the sales tax on cars in July, when prices are expected to rise. Many major car manufacturers are currently receiving a large number of orders, some of which are already scheduled beyond July. Some manufacturers have already asked their sales departments to suspend accepting deposits from consumers, as prices will be increased for cars after July.
