While not mentioned during Prime Minister Datuk Seri Anwar Ibrahim’s speech, the revised Budget 2023 that was tabled today also included proposals for the extension of tax exemptions for electric vehicles (EV) in Malaysia.
As laid out in the tax measures appendix document, the excise and import duty exemptions for fully-imported (CBU) EVs is now being extended for two more years until December 31, 2025, if the Budget 2023 in its current form passes through the parliament’s legislation process.
The tax exemption for CBU EVs was originally set to end by the end of this year, although the former minister Tengku Datuk Seri Zafrul Abdul Aziz has already proposed an extension until end-2024 in the original tabling of Budget 2023 last year.
Similarly, the excise duty and sales tax exemption for locally-assembled (CKD) EVs is also being proposed for an extension of two more years until 31 December 2027. In the same vein, the import duty exemption for EV components used in local assembly will also be extended until end-2027.
Other EV-related proposals include 100% tax deductions for companies renting non-commercial EVs, up to a value of RM300,000, as well as a 100% income tax exemption from year of assessment 2023 to 2032 for local EV charger manufacturers. Both of these porposals will be eligible until 2025.
The tax exemption intiatives included in Budget 2023 were said to help support the development of the EV industry in Malaysia, and in particular to encourage the growth of locally-assembled EV activites, in line with the nation’s Low Carbon Mobility Blueprint.
RELATED: Government working to reduce EV prices for the rakyat – Tengku Zafrul
