Prices of Affordable MPVs To Go Up – Excise Duty Now Up By 5 Percent

If you are looking to buy a budget seven-seater priced below RM100,000, we suggest that you do it soon. Effective immediately, the Malaysian government has unexpectedly raised the excise duty rate for seven-seater multi-purpose vehicles (MPVs) / private-use sliding door window vans with engine capacities not more than 1,500cc, by 5 percent, from the current 60 percent to 65 percent.

In other words, the government will be raising taxes on affordable 1.5-litre seven-seater models like the Perodua Alza, Proton Ertiga, Toyota Avanza, Toyota Sienta, and Honda BR-V. The Nissan Grand Livina, which uses a larger 1.6-litre engine, will see no change to its tax rate, as it is already taxed at 65 percent.

Thanks to a tip from our friends at Automachi.com, we’ve learned that on 31-March 2017, the Malaysian government had revised its excise duty rates, as detailed in its Excise Duty Order 2017 document. Among the consumer goods affected are seven-seater MPVs.  

The announcement caught many car makers by surprise. What’s more confusing is that document released on 31-March 2017 also clearly states that the new excise duty rates will take effect from 1-April 2017, talk about April Fools.

At the moment, Carlist.my understands that the individual car makers are still seeking clarification from the government on the matter, and none of the affected brands – Perodua, Proton, Honda and Toyota - have revised prices of their MPV models yet, but you can be certain that there will be an increase in prices in the coming weeks.

The government’s move to raise taxes on affordable MPVs flies in the face of its other initiatives to encourage rear occupants to belt up and educating parents on the need to use proper child seats.

Below is a summary of import and excise duties in Malaysia.

By the way, does anyone remember this poster?