Excise Duty and Sales Tax Exemption on the Sale or Transfer of Individually owned Taxis & Hired Cars

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Update: The Ismail Sabri Government Budget is no longer applicable. Malaysia’s national budget for 2023 was re-tabled again in February 2023.

To Download Revised Budget 2023 Speech and some other related publications –

Current Position

In Budget 2012, excise duty and sales tax exemption were given on the sale/transfer/private use/disposal of budget taxis and hired cars subject to the following conditions:

  • limited to individually owned budget taxis and hired cars only; and
  • age of the vehicle must exceed 7 years from the date of registration.


To assist individual taxi owners affected by the COVID-19 pandemic, it is proposed excise duty and sales tax exemption on the sale/transfer/private use/disposal of individually owned taxis and hired cars be reviewed as follows:

  1. exemption granted based on these licenses and services:
    1. taxis (budget taxis, executive taxis and TEKS1M);
    2. airport taxis (budget and family); and
    3. hired cars
  2. vehicle age is relaxed to at least 5 years from the registration date.

Effective Date

For applications received by the Royal Malaysian Customs Department from 1 March 2023.

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