Langkawi's duty-free status is not intended to allow wealthy individuals to keep luxury vehicles on the island for several years before bringing them into the principal customs area to avoid paying higher taxes.

Deputy Finance Minister Liew Chin Tong said changes to the duty and tax exemption policy for vehicles were introduced not only to address revenue leakage but also to discourage such business practices.

“At its core, this is a business model that we do not wish to promote, and we hope all citizens will accept this policy,” he said in reply to a supplementary question from Suhaimi Abdullah (PN-Langkawi) during a Special Chamber session in the Dewan Rakyat today.

Suhaimi had sought clarification on the government’s review of the RM300,000 threshold for vehicle tax exemptions in Langkawi and called for stricter enforcement to prevent abuse of the facilities.