In Labuan, Customs revealed that it had seized 55 vehicles worth RM7.12 million, including taxes, following a series of enforcement operations held in Sabah and Sarawak from January to December 29 this year. Named reports.
According to Labuan Customs Director Aspaila Ag Tuah, the operations targeted vehicle owners who violated the terms of Item 14 of the Customs Duties (Exemption) Order 2017. She said under Item 14 of the order, vehicles purchased in duty-free islands such as Langkawi and Labuan can be brought into the main customs territory (excluding duty-free islands) for a maximum of 90 days per calendar year.
As you would expect, misuse of this has led to action being taken. “Investigations have revealed that these vehicles were brought into the main customs territory using the exemption facilities but were not returned to the duty-free islands after the permitted period,” she said, adding that all seized vehicles, including models such as the Toyota Alphard and Vellfire, Audi Q7 and Mini Cooper, as well as several BMW and Mercedes-Benz models, were investigated under section 135 (1) (d) of the Customs Act 1967.
Luxury vehicles weren’t the only ones on the seized list, with Toyota models like the Fortuner, Vios, Avanza and Unser and cars like the Nissan Sentra, Mitsubishi ASX and Peroduas on it, proving that gaming the system and avoiding duties is not just limited to supercars.
From January 1 next year, the game will become even more interesting, at least for vehicles that are more expensive on the chain, as the government has announced a measure to prevent wealthy individuals from abusing Langkawi and Labuan’s tax-free status to buy luxury cars at lower prices, with a ceiling price of RM300,000 for tax exemptions for vehicles purchased on the tax-free islands.
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