During the tabling of Budget 2023 (Bajet 2023) last year, it was announced that fully-imported (CBU) electric vehicles (EVs) would be exempt from import and excise duties until December 31, 2024. This is an extension from the prior end date of December 31, 2023 that the previous government put in place when Budget 2022 (Bajet 2022) was revealed.
Other incentives currently in place involve locally-assembled (CKD) EVs, which are exempt from excise duty and sales tax until December 31, 2025, while the components used to build them are exempt from import duty – all EVs are also exempted from road tax until said date.
Outside of purchasing an EV, Budget 2023 also looked to entice manufacturers of EV charging equipment, where 100% income tax exemption from YA 2023 to 2032 was offered as well as 100% investment tax allowance (Elaun Cukai Pelaburan).
Meanwhile, car importers who are looking to bring in EVs will also be incentivised to do so because they will not need to pay the approved permit (AP) fee. Budget 2022 also included a personal income tax relief of up to RM2,500 for the cost of installing, renting, purchasing and leasing of equipment or usage subscription of EV charging facilities.
With a new government in place, Budget 2023 will be revised, but we’ll only find out what is in store when it is presented in the Dewan Rakyat on February 24, 2023. For those expecting more EV incentives to be included in the revised Budget 2023, natural resources, environment and climate change minister Nik Nazmi Nik Ahmad has said in a report by Bernama that the government will be looking to do so.
“The government is looking forward to announcing more EV-related incentives in the revised Budget 2023,” Nik Nazmi said at yesterday’s memorandum of understanding signing ceremony between Cyberview and Roda Emas Industries on the development of a smart mobility ecosystem in Cyberjaya. He also commented previously that the government is working on making EVs more affordable under the RM100,000 mark.
According to the road transport department (JPJ), there are more than 10,000 EVs already registered in the country, and the government wants to increase their adoption further. International trade and industry minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz previously said efforts are being made to attract EV investments and to meet the national target of having EV and hybrid vehicles account for 15% of total industry volume (TIV) by 2030, and 38% by 2040.
There’s still some time to go before the revised Budget 2023 is presented by prime minister and finance minister Datuk Seri Anwar Ibrahim. What additional EV incentives are you hoping will be provided by the government?