Langkawi tourism operators urge return of luxury car tax exemption

Tourism stakeholders in Langkawi are appealing to the government to reinstate full tax exemptions on luxury cars. They believe this measure is crucial for the survival and growth of the popular resort island.

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These individuals typically spend three to four days in Langkawi and indulge in luxury spending, which increases expenditure in hotels, restaurants, businesses, and various service sectors.

Datuk Alexander Isaac, advisor to the Langkawi Business Association, stated that the tax exemption previously drew high-income tourists who spent generously during their stays. "These individuals typically spend three to four days in Langkawi and indulge in luxury spending, which increases expenditure in hotels, restaurants, businesses, and various service sectors," he told Utusan Malaysia.

He was responding to Kedah Chief Minister Datuk Seri Muhammad Sanusi Md. Nor's claim that Malaysia lost at least RM400 million due to the federal government's decision to withdraw the tax-free status for luxury vehicle purchases on the island. Isaac added that many luxury car buyers not only purchased vehicles but also kept them on the island, fostering numerous ancillary businesses, including storage facilities operated by locals. "All of this creates an economic spillover effect for residents and the tourism industry. That's why we are pleading for the duty exemption status for cars to be reinstated because its benefits extend beyond car dealers to the entire Langkawi economy."

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All of this creates an economic spillover effect for residents and the tourism industry. That's why we are pleading for the duty exemption status for cars to be reinstated because its benefits extend beyond car dealers to the entire Langkawi economy.

Raseli Yahya, chairman of the Langkawi Tourism Industry Operators Association, suggested that the core issue is not solely about restoring the tax status but implementing stricter control mechanisms. "PPIPL maintains its independent stance that taxes should be implemented, and improvements should be studied according to current conditions to attract tourists to Langkawi," he said.

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PPIPL maintains its independent stance that taxes should be implemented, and improvements should be studied according to current conditions to attract tourists to Langkawi.