We’ve been waiting for the government to announce initiatives relating to electric vehicles for some time now, and during the tabling of Budget 2022 (Bajet 2022), we finally have a better idea of what they are.
During his official address in Parliament, finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that the government sees the potential of EVs to help reduce air pollution. As such, to support the development of the local EV industry, the government is proposing that EVs be completely exempt from import duty, excise duty and sales tax.
If that isn’t enough, EVs will also benefit from a road tax exemption of up to 100% under the proposal, while an income tax relief of up to RM2,500 will be provided on the cost of purchasing and installing, renting or taking up hire purchase facilities, as well as subscription payments of EV charging facilities.
The proposal involves 100% duty exemption for CBU electric cars up to December 31, 2023, and 100% duty exemption for CKD electric cars up to December 31, 2025. Clearly the plan is to kickstart the industry with CBU cars and hopefully local assembly activities can begin from 2024 onwards.
It should be noted that the initiatives being proposed today have been mentioned long before the tabling of Budget 2022, as Malaysia Automotive, Robotics and IoT Institute (MARii) CEO Datuk Madani Sahari said in April that a dedicated policy on EVs being drafted at the time would involve exactly what Tengku Zafrul announced. To recap, the Madani said the policy would provide new EVs with zero excise and import duties, along with full sales tax exemption and zero road tax.
As for the bit about income tax relief, this was brought up by international trade and industry minister Datuk Seri Azmin Ali earlier this month. At the time, the idea of providing income tax relief for both the purchase of EVs as well as for the installation of EV chargers was being considered, although as we just found out, it’s now only for EV chargers.
Of course, while these initiatives were mentioned in the past, they were not officially presented until today. Keep in mind that while what was mentioned today is certainly astonishing, this is still a proposal (for now) and the initiatives mentioned are not set in stone just yet.
Nonetheless, it’s encouraging to see that the government is considering such steps in the first place to promote EVs here. What are your thoughts on the matter? If you’re curious about just how much more affordable EVs could be, we’ve prepared some examples here.
Cool! Can buy electric cars anytime, thanks to for free import tax, excise duty and EV roadtax.
Abesla proton
Do you realise that locally, Proton is the most likely to come up with an EV? They have access to Geely and arms reach to Volvo/Polestar. Even the Proton X50 is originally designed as a hybrid 250hp car.
If anything this will help Proton push for EV models.
Syukurrriiiinggg keta lagi murah. Siram siirrraamm….
Indonesia is producing this model.
guys… tgs is just proposal, wait till it get approved and we let see how cheaper it gonna be, if they really apply those taxes into the final price.
bmw ix full spec 370k, ix3 300k, i4 270k, all full spec full warranty, we have cheapest EV in the world! Bravo
Other countries give subdidies if you buy electric cars as their ICE cars are cheap.
Yeah, currently 7.5k tax credit for US.
https://paultan.org/2021/02/10/great-wall-ora-good-cat-ev-previewed-in-thailand-145-ps-210-nm-ai-point-to-point-memory-parking/
China’s Ora Good Cat has been spied Testing @ Malaysia.
Sold @ thailand as rhd too.
Only RM120k @ china for C segment EV, after some tax, with Genesis GV60 EV Dashboard.
China only sell RM65k to RM90k.
501km range, better value than BMW iX.
At least 400km range, it would be good buy and good enough. One trip also fine
Minimum 600km single charge than it is a go for me. Maybe within 5 years EV battery technology can reach that.
400km range also good enough as long as if below 400 km range, then not good to buy
EV car at the moment is only the toys for the rich. The Government should also encourage hybrid to bring the cost down. Toyota, Honda, perodua and etc l, all prepared to launch hybrid vehicles.
Hybrid is more practical, like it or not. 100% support hybrid.
Agreed that.
Most developed countries had been phasing out hybrid since there was a breakthrough in the high milleage per charge for EV.
Don’t worry, our government will still doing that for hybrid vehicles.
Its true… push for Hybrid cars then EV.. not much affordable pricing EV cars outthere unlike Hybrid cars…
Actually, EV cars should be affordable now after removing those like import tax, excise duty and road tax. Just that should built more charging station.
EV car at the moment is only the toys for the rich. The Government should also encourage hybrid to bring the cost down. Toyota, Honda, perodua and etc , all prepared to launch hybrid vehicles.
This will be good for TNB which is currently producing nearly 50% more power than it can sell. 0lus EV does not produce heat like petrol and diesel cars and hopefully will make our already hot environment cooler. During lockdown, i was sure the environmrnt felt so much cooler than normal.
don be so happy, sure got caveat one
Datuk SemiValue,
You are 3000percent correct.
Not only one caveat…many to come.
Last time we heard about the flying car,didnt we?
You can talk hydrogen cars,tesla cars,radioactive cars etc …fix the infra first,then talk.
Now just to garner “”the feel good factor ” only.
Give it a few more years and the tax will come. Just wait and see.
yay!
the riches just get more richer by the day!
How?
Funny.
When Malaysia have no EV policy, these people bash us being slower than other nations.
When Malaysia does have EV policy, these people bash us for making the riches just get more richer.
Best news ever. Hope manufacturer’s who have been waiting will start bringing in their latest models soon. I just sold my ICE suv. With these kind of incentives I will now wait for the EV models.
Should also have free public parking, lower electricity rates, free using of highway and exempt from speeding fined
Test market for the rich first? EV cars should be made affordable first la so that more rakyat can benefit the ownership and appreciate the tax reduction.
Certainly a welcoming move but like all initiatives, we have to ask ourselves, what exactly are we achieving? Is it really for the environment? Or is it just to feel good? Perhaps it only gives a false appearance that the government is righteous? Strive to advance our nation as a whole. Invest in education. Transform our nation infrastructure. The adoption of EV will gradually and exponentially evolve.
Ya lah we know the argument that this only helps the rich because EVs are expensive etc etc.. Let’s just hope this will further entice carmakers to bring in proper, affordable EVs. After all, the entry of EVs started out as a hope, an idea, right?
How does it help the rich get richer? 400k car become 300k, you think the buyer at this level cares about 100k? By removing the stupid excise duties and import tax, at least the money is not given to the government to be inappropriately spent. More money in the pockets in the consumer, the more he will spend. Better to spend on general economy than to pay 100% tax to the government.
When they mention EV, is that only referring to Battery EV? Or included HEV and FCEV (I know the infra is not ready for FCEV, but wanna know details about the policy)?
Any suggest ? tesla？ porsche? Audi? Which one I can get here with tax free
Any info on duration or is this only a one year thing? Maybe have to wait until it gets passed in parliament.
There may be a situation that despite the ‘lower’ EV prices, people may be reluctant to buy them because the lack of charging stations through out the country. And companies with resources to install such stations may be reluctant to further do so because there are not enough EVs on the road. The government may have to also allocate a sizeable budget to kick-start the expansion of the EV charging infrastructure.
Again, while I welcome greener initiatives, I can’t help thinking this is going to help the wealthy more again. Even with no taxes, electric cars currently being offered are from the luxury marques and remain out if reach by a vast majority of the populace.
If we can see more sub 100 to 150k EVs, then I can see this really making a change. Will we see more Chinese EV imports? Does AP still apply? How about electric motorcycles?
For those saying they like to see local marques launching more EVs, don’t be too happy, taxes will go up again to protect local makers yet again.
If you think it is bad enough seeing slowpokes hogging petrol pumps, imagine EV charge stations when more people use electric cars.
Vandals are already eyeing on the charging station cables for the copper to be sold to scrapyards..
wait for budget EV from China.
cheaper than a proton saga.
if we stop complaining.
a good city car, not good travel on highway,
Somebody please invest into the development, assembly and distribution of a RHD Wuiling Mini EV in Malaysia please
https://www.youtube.com/watch?v=jtU4yx6nbdo Bring this INTO Malaysia. My parenst will be HAPPY. Cheap and Good !!!!
Those that already book the BMW iX how?
cancel booking la
illogical. First batch buyers got for pre Budget 2022 announcement. While second batch buyers will get for post announcement Budget 2022
As long as BMW has not paid customs the duties, the bookings are fine. They will just pay lower prices when the car arrives in Malaysia.
Good initiative by the gov. But its only proposal. Furthermore, EV car got resale value meh?
This is a budget presentation la weii. Once it’s approved (almost a certainty because if it’s not, the government falls) then it becomes fact.
People are questioning why there is no clear EV policy that can attract investment thus creating job here for Malaysians.
As much this policy will lower the price of EV, like it or not it is still a toy for the rich.
Yes there is cheap EV car from China cost between 60k to 100k, still it is still too early for mass market to replace the Myvi King.
Good steps but we’re looking for better and clear EV policies that are encouraging investment and creating jobs.
Copy paste: “Funny.
When Malaysia have no EV policy, these people bash us being slower than other nations.
When Malaysia does have EV policy, these people bash us for making the riches just get more richer.”
Gov just want to invite investor to come in malaysia. Later tesla come and start selling, gov will charge tax to malaysia resident. Lol. They just want show signal to ev company to come and invest in malaysia. Even TNB never rugi always increase taarif. Lol. Rakyat never untung maa..unless u are politician.
Good help on Industrial Automotive move forward for green enviroment. Too much polution cirrent such as main on Bus Kilang using diesel more than 30 Yeaars still on the road. Not sure such as Bas berhenti-henti cirrent on the road not more than 7 years bus. Why Bus Kilang more than 30 Years still on the road. Goverment need to look into these as big polution to these world.
Many EV can do 0~100 km/h in just a few seconds, I just worry more fatal accident considering how some malaysian drive.
helping rich to buying his new toy, better use that allocation to install more charging station and give subsidies for industries player to setup the factories here. exclude import duties, yg untung negara pengeluar dan pembeli which is menteri’s cousin and families. Free road tax somemore. manyak happy lorr keluarga menteli
Tax exemption for EV cars…
then suddenly TNB announce a new tariff… it is already long due to revise
so back to square one… only those rich ppl will benefit
let’s wait until it get approved, this is still proposal at current
This shows how our government is decoupled from reality. EV will not be able to charge petrol and road tax for company car or any BIK situation and only RM2.5k for tax relief….. what a joke.
I think someone could invent a metered portable charger. So anytime can rent-a-charge at someone’s home when needed, billed the customer and pay to the host.
Much like AirBnb style.
Petrol stations would be no longer exist after that.