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LABUAN: Labuan Chinese Chamber of Commerce Chairman Datuk Wong Kii Yii expressed deep regret over the new policy on luxury vehicles priced over RM300,000 in Labuan and Langkawi which can no longer be taken out of the islands under the 90-day period per year. 

He said the islands were being punished over the failure of the authorities to deal with abuses.

Under the Budget 2026 effective Jan 1, due to tax leakages and abuse of privileges, luxury car owners can no longer transport their cars to mainland and enjoy long distance drives as the tax exemptions on cars priced above RM300,000 was withdrawn.

There have apparently been cases of Labuan-registered high-end cars taking advantage of the situation and not returning to the home base after the stipulated 90-day period ended.