LABUAN: Used cars are piling up here due to what has been described as “unreasonably high Customs tax rate” on these vehicles when they are transferred out of the duty-free island by the owner on transfer after completing the stint here or the vehicle is sold to an outside buyer.

A dealer in the car trade, Fauziah Datuk Din said: “It is the hope of many that under Budget 2025 that will be tabled in October 18th, the drastic rates will be adjusted to as before and be more acceptable so that used car will not become a stagnant business.”

“This would encourage local purchase of cars. The situation now is there is a growing trend to purchase duty-paid cars rather than buying duty-unpaid car due to the high duty when transferred.”

Last year the Labuan Chinese Chamber of Commerce Chairman Datuk Wong Kii Yii highlighted a case of a member having to pay RM20,000 for a 10-year-old car with a market value of RM5,000 which was clearly ridiculous and questioned the Labuan Customs for having to refer everything to Putra Jaya for approval.