Budget 2023: CBU EVs in Malaysia tax free until end 2024; AP fees exempted – even cheaper EVs soon?

Budget 2023: CBU EVs in Malaysia tax free until end 2024; AP fees exempted – even cheaper EVs soon?

The current import duty and excise duty exemption for electric vehicles will be extended for another year, as revealed by finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz during the tabling of Budget 2023.

During last year’s Budget tabling, it was announced that EVs would be exempt from import and excise duties, with the exemption period being up to December 31, 2023 for fully-imported (CBU) EVs, and up to December 31, 2025 for locally-assembled (CKD) EVs.

With Budget 2023, Zafrul said the exemption for CBU EVs will be extended for another year to December 31, 2024 – no mention was made about CKD EVs. In any case, this is surely good news for car companies here who are planning on bringing in EV models soon as well as car buyers looking for a zero-emission vehicle.

Budget 2023: CBU EVs in Malaysia tax free until end 2024; AP fees exempted – even cheaper EVs soon?

The Malaysian Automotive Association (MAA) previously said it wanted the EV incentives to go on for 10 years, but it looks like they’ll have to settle for an extra one and see what comes next in Budget 2024.

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. This is new and could potentially make EVs even cheaper, provided companies pass the savings from not paying the AP fee on to customers. The AP fee exemption will be in effect from January 1 to December 31, 2023, and again, only applies to EVs.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Going GE poll station in James Bond speedboat on Oct 07, 2022 at 8:16 pm

    Eh,,chicken out ?
    I thot he threatened BMW owners ,by denying fuel subsidies ?
    When pushing for quick monsoon polls, some dudes quickly U turn to give sweeteners.
    With avalanche of Budget goodies,one wonders, with a ballooning 1.4 T debt and deficit budget,u think we wont be another Zimbabwe? Maybe not now,but in 5 years ?

    Like or Dislike: Thumb up 17 Thumb down 44
    • Dong Gor on Oct 07, 2022 at 8:51 pm

      When Zimbabwe comes it comes.. Even superman can’t stop it. So for time being enjoy all the candies dulu :)

      Like or Dislike: Thumb up 9 Thumb down 18
      • Where is my Starbucks machiatto,guards? on Oct 07, 2022 at 10:28 pm

        Dong Gor
        Superman is paralysed and dead.
        We dont need Superman Or Captain Hamidi.
        We need Rafizi and Co to stop the shit.
        If not,u and your cucu will need to carry a briefcase of thousands of RM just to drink a cup of starbucks macchiato..the Bossku favourite coffee.

        Like or Dislike: Thumb up 14 Thumb down 23
        • Dr Strange on Oct 08, 2022 at 12:02 pm

          You sure love to reply your own dupe comments huh? Symptomatic of tin kosong syndrome.

          Like or Dislike: Thumb up 10 Thumb down 3
          • Bossku having it so good,daily Starbucks machiatto on Oct 08, 2022 at 6:00 pm

            Another Bossku lapdog..how pathetic.

            Like or Dislike: Thumb up 4 Thumb down 17
          • Spin Too Much on Oct 09, 2022 at 9:35 am

            PH chowkows here loves to bark but in the end no bite. Pitiful fella. Better go find a meaningful job. Even Food Panda deliverymen has more selfrespect than you.

            Like or Dislike: Thumb up 11 Thumb down 6
    • XBagi korang complain.
      Bagi korang challenge.
      Apahal laa ngan minda korang. Dah mabuk tepi jalan kaa?

      Like or Dislike: Thumb up 36 Thumb down 4
    • chowkong on Oct 08, 2022 at 9:23 pm

      GST is round the corner

      Like or Dislike: Thumb up 3 Thumb down 0
  • Only extended one year? That shows how forward thinking and committed our government is to the automotive industry. Bravo! Everything is just the stage of political play! Genuine interest to boost the industry? Not relevant!

    Like or Dislike: Thumb up 13 Thumb down 10
    • Spin Too Much on Oct 09, 2022 at 9:39 am

      What budget is this? Year 2023. Ini budget 2024 ka? Bukan. Ini budget 2025 ka? Bukan. So of course hanya utk 1 taun je la. Ada pakai otak bila komen? Macam tak relevant je.

      Like or Dislike: Thumb up 3 Thumb down 8
  • Ongtk on Oct 07, 2022 at 10:17 pm

    Blanket subsidies for EVs will benefit the rich only. In my opinion, the rich are laughing all the way to the bank. They enjoy the same quantum of fuel subsidy as the B40s driving beat-up cars. Now, they enjoy subsidies for EVs that costs RM200K or above.

    Like or Dislike: Thumb up 16 Thumb down 8
  • LeeTY2 on Oct 07, 2022 at 11:01 pm

    Looks like early EV delears like Sime will benfit much from this budget. Parallel EV importers will also be HAPPY with the abolishment of APs.

    Like or Dislike: Thumb up 2 Thumb down 0
    • Rennie Abdul Ghani on Oct 09, 2022 at 12:26 am

      Franchise AP is Free, only OPEN AP need to pay so basically there is no reduction if you buy from KIA, BMW, Mercedes ,HYUNDAI ….ONLY from reconditioned or imported new EV by Pekema or other recon car seller ONLY….dun be duped by the editor….

      Like or Dislike: Thumb up 5 Thumb down 1
  • remove excise duties la protectionism how long more ????

    you forgot the purpose of excise duty ka ?need money to songlap

    Like or Dislike: Thumb up 3 Thumb down 13
    • Proposal
      1. Remove all taxes for electric vehicles to save environment
      2. Reduce taxes for hybrid and plug in hybrid vehicles to save environment by giving tax incentives
      Remove taxes for european cars
      4. Impose car taxes based on horsepower including national cars
      5. Roadtax must be based on horsepower including national cars
      6. Impose stricter for lemon law including national cars
      7. Reduce taxes for European and Korean cars including CBU and CKD
      8. Remove taxes for pick up trucks
      9. Remove taxes for CBU vehicles

      Can’t agree:
      1. Removing all taxes for CKD vehicles (Reasons: because traffic jam might increase and pollution)

      Like or Dislike: Thumb up 21 Thumb down 4
      • Inter on Oct 09, 2022 at 12:32 pm

        Based on “Green technology” acquisition, should stop protectionism for CBU units. It is time to give EEV tax incentives for CBU units for all brands, (just like giving EEV tax incentives for CKD units for BMW, Mercedes and Volvo) and also for Audi to bring competition and fight with BMW, Mercedes and Volvo.

        Last time, Audi used to compete with BMW, Mercedes and Volvo in terms of pricing but now sadly it is not.

        But the sport cars must not be given tax exempted, even sport cars are imported units

        Like or Dislike: Thumb up 3 Thumb down 0
  • Sohai on Oct 08, 2022 at 4:04 pm

    Cheaper EV with no AP? I think SST exemption is the better deal.

    Like or Dislike: Thumb up 0 Thumb down 5
    • Not the right proposal

      The best proposal should be:
      1. Remove all taxes for electric vehicles to save environment
      2. Reduce taxes for hybrid and plug in hybrid vehicles to save environment by giving tax incentives
      Remove taxes for european cars
      4. Impose car taxes based on horsepower including national cars
      5. Roadtax must be based on horsepower including national cars
      6. Impose stricter for lemon law including national cars
      7. Reduce taxes for European and Korean cars including CBU and CKD
      8. Remove taxes for pick up trucks
      9. Remove taxes for CBU vehicles

      Can’t agree:
      1. Removing all taxes for CKD vehicles
      2. Removing SST tax

      (Reasons above for 1 and 2: because traffic jam might increase and pollution)

      Like or Dislike: Thumb up 14 Thumb down 6
      • Sohai on Oct 08, 2022 at 8:14 pm

        Relax bro. What I implied was SST exemption has an effect of a cheaper car price than AP exemption.
        Is a car blog.. relax.
        P.s there is never a “best” proposal. Depending on who you ask really.
        P.p.s everything reduce or remove, government eat what ah? Haha you are more sohai than me.

        Like or Dislike: Thumb up 1 Thumb down 13
        • SST exemption will cause more problems for traffic jams. He is not sohai but you don’t know much on what’s going on for traffic jams today. I agree with VST proposal but your proposal should be modified better.

          Like or Dislike: Thumb up 7 Thumb down 1
  • At least this is one good news. We have been suffering from parasitic policies for too long. These AP guys are billionaires so why should they profit from consumers doing basically nothing.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Vedder on Oct 09, 2022 at 8:11 am

    No AP. So anyone can buy an EV on their own?

    Like or Dislike: Thumb up 1 Thumb down 0
  • Inter on Oct 09, 2022 at 12:30 pm

    Based on “Green technology” acquisition, please do also give EEV tax incentives for CBU units for all brands, (just like giving EEV tax incentives for CKD units for BMW, Mercedes and Volvo) and also for Audi to compete with BMW, Mercedes and Volvo. Last time, Audi used to compete with BMW, Mercedes and Volvo in terms of pricing but now sadly it is not.

    But the sport cars must not be given tax exempted.

    Like or Dislike: Thumb up 3 Thumb down 0
 

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