MAA wants EV tax break extension, 10-year incentives

The Malaysian Automotive Association (MAA), which represents carmakers in our country, wants an extension of tax breaks for electric vehicles (EVs) in the upcoming Budget 2023.

Announced in Budget 2022 and currently in place, CBU imported EVs are enjoying zero import and excise duties plus free road tax.

MAA president Datuk Aishah Ahmad told Bernama that the auto industry club is appreciative of the government’s effort to support the EV market but it will be too early to end the current incentives in 2023.

“We seek extension of full import and excise tax exemption for CBU EVs while the market is preparing for the growth of EVs in Malaysia. We hope there will be incentives for up to 10 years,” she told the national news agency, adding that efforts to locally assemble CKD EVs are in progress.

The Budget 2022 deal was 100% duty exemption for CBU EVs up to December 31, 2023, and 100% duty exemption for CKD EVs up to December 31, 2025. The idea was to kickstart the adoption of EVs in Malaysia via an introductory offer of sorts, and push car companies to start local assembly to continue to enjoy the benefits.

Too small a window, MAA says. The ball is now in the government’s court, and we’ll see if there’s an extension in Budget 2023, which is just around the corner.

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