MOF denies 2026 car price hike reports

The Ministry of Finance (MOF) has asserted that there will be no increases in vehicle prices starting in 2026.

In a report by Bernama, MOF addressed the anticipated significant rise in vehicle prices beginning in 2026, following the full enforcement of the new excise tax regulation, P.U. (A) 402/2019 – Excise Tax Regulation (Determination of the Value of Locally Produced Goods for Excise Tax Purposes).

Additionally, MOF, along with the Ministry of Investment, Trade and Industry (MITI) and the automotive industry, is examining vehicle valuation methods to ensure the fair, uniform, and consistent implementation of the tax.

No final decisions have been announced at this time.

Previously, a local financial news portal cited industry sources indicating that the automotive sector has successfully secured an extension for the proposed review of excise duties for local assembled cars (CKD) until December 31 of this year.

The sources indicated that although a deferral has been granted for now, it is unlikely that any further extensions will be available after 2026, with vehicle prices expected to rise significantly starting in 2026.