2026 Budget: Lemon Law, tighter Langkawi tax rules hailed as major consumer reforms

SHAH ALAM – The 2026 Budget has been widely welcomed for introducing the long-awaited Lemon Law and tightening vehicle tax exemptions in Langkawi, seen as important steps towards stronger consumer protection and fairer fiscal management.

Political analyst James Chin said the introduction of the long-overdue Lemon Law was necessary to curb dishonest sellers in Malaysia and hoped it would follow international best practices.

He pointed out that in many Western countries, the principle was straightforward, what was advertised must match the actual product and consumers were automatically entitled to a minimum 30-day return or refund period.

He added that if a product failed within that period, even if it matched the description, the seller must still provide a refund.

“This kind of consumer protection is vital and should be enforced here as well,” he said.

Echoing similar a view, political analyst Associate Professor Dr Syaza Shukri said the introduction of the Lemon Law was an excellent initiative to protect consumers.

She said what was important was the implementation details to ensure that the law truly benefitted the public.

Meanwhile, political analyst Arif Anwar Lokmanol Hakim said based on previous statements by the Prime Minister DatukSeri Anwar Ibrahim and Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said, the Lemon Law will be implemented through amendments to the Consumer Protection Act 1999, giving consumers greater authority to seek compensation when goods or vehicles were found to be defective even after several repairs.

He said the law will emphasise the responsibility of manufacturers and distributors, allowing consumers to demand a replacement, free repair, or full refund.

“The move also follows viral issues involving Proton X90 and X50 cars, which highlighted the need for clear legislation to protect consumers from faulty products,” he said.

Arif added that the government was expected to strengthen the role of the Consumer Claims Tribunal as the main channel for complaints, ensuring that the Lemon Law delivered a real impact on consumers and enhanced accountability within the industry.

On Friday, the Finance Ministry officially tabled the 2026 Budget, marking the fourth budget under the Madani administration and the first under the 13th Malaysia Plan (2026–2030).