PUTRAJAYA, March 7 — Vehicles registered in the Duty Free Islands (DFIs) of Langkawi and Labuan are exempted from tax on change of ownership, said Customs Director-General Datuk Seri T. Subromaniam.

In a statement today, he said the vehicles had to meet the requirements under Item 14 of the Customs Duty (Exemption) Order 2017 for vehicles in Langkawi and Labuan which designates that the vehicles must be registered with the Road Transport Department.

"The vehicle also needs to be returned to the particular DFI within a period of not more than 90 days in a calendar year from the date it was taken out of the island,” he said.

Subromaniam said all imported and locally assembled vehicles registered in Langkawi and Labuan were free of duty or tax as long as they were used within the DFIs.

He said Section 163 (E) of the Customs Act 1967 provides for dutiable goods to be deemed non-duty while in Langkawi and Labuan.

Section 163 (B) (1) (c) states that import duty shall be paid on all dutiable goods transported to Peninsular Malaysia or Sabah and Sarawak from Langkawi or Labuan. — Bernama