Tesla Model S 85 drive-4

The Malaysian International Chamber of Commerce & Industry (MICCI) wants the government to reduce the import duties by 5 to 10%, as well as relevant taxes to encourage the usage of hybrid/electric cars in the country, according to a report by Bernama.

Datuk Wira Jalillah Baba, president of MICCI, said a study by the Energy, Green Technology and Water Ministry revealed that transportation was a major contributor to the country’s pollution at 70%. “We want to encourage wider usage of electric cars on the road, but what’s stopping the consumers is the higher import duty, excise duty and approved permit (AP),” she told Bernama.

As a comparison, she said the Tesla electric car sells for around US$70,000 (RM289,551) in the United States, but in Malaysia, it carries a price tag of RM500,000. It is reported that Tesla cars are subjected to an import duty rate of 30%, plus an excise fee of 65%, while the Goods and Services Tax is 6%.

Therefore, Datuk Wira hopes the government will consider cutting import duties and other relevant taxes in the upcoming Budget 2017. “If we can reduce carbon emissions contributed by transportation, why not? By doing this, the government could (also) attain its commitment to the United Nations of reducing carbon emissions by 40%,” she explained.