Although it wasn’t mentioned during finance minister and prime minister Datuk Seri Anwar Ibrahim’s Budget 2023 speech earlier this evening, there are updates related to electric vehicle (EV) policies in the retabled budget. These were included in the touch points that were released later in the evening.
The current import duty and excise duty exemption for fully-imported (CBU) EVs will now be extended for yet another year to December 31, 2025. It was originally set to end in December 31, 2023, before being extended in the first tabling of Budget 2023 to December 31, 2024.
That’s not all. The excise duty and sales tax exemption for locally-assembled (CKD) EVs has also been extended – it is now in place until December 31, 2027, two years more than the original deadline, which was December 31, 2025.
Likewise, the import tax exemption period for components used in local CKD assembly of EVs. Originally set to run until December 31, 2025, it has been extended by two years to December 31, 2027.
As announced in the first tabling of the budget last October, the government is providing manufacturers of EV charging equipment 100% income tax exemption from year of assessment 2023 to 2032. It will also offer these manufacturers 100% investment tax allowance (Elaun Cukai Pelaburan) for a period of five years.
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That’s great news! Malaysians deserve the best standard of living and motoring with EVs offering much higher sophistication, safety, performance and comfort. Time to move away from ‘em walking dinosaurs farting carbon that harms kids, people and the environment
Yes, those who save excise duty, sales tax and import tax can now use the money for the extremely high EV road tax…
CBU tax free for the rich, meanwhile poor B40 segment P1/P2 still have to pay taxes. This gomen only cares for the rich. The poor now subsidise the rich!!!
#TumbangPHGomen
#GelombangRakyat
That’s it?
Yeah. Thats it? It doesnt state the charging facility has to be of fast charger. Means a lot of investor will install any type of charger eap slow charger. Not ideal and potential kebocoran in the contract?
time to make more money providing those charger stations??
The charger station is not the problem, the 180kW 3-phase power supply is a problem. It’s the same size like a small factory with around 10 machines.
Everyone asks me how long it takes to charge an EV from 0 to full. When I say ~8hours they always react with “OMG, like that cannot lah, how everyday charge 8 hours”. You don’t fill up your ICE everyday, you don’t have to charge your EV everyday either.
With 300-400km range and an assumed 20,000km a year mileage you only need to charge your car once a week.
For a single car household that needs to travel >150km one way regularly, EVs do not fit well at the moment. Otherwise 300-400km range is plenty for daily commute
Finally make sense. But to be honest let the CBU tax free end this June. CKD tax free period should stay 5 more years. This is to encourage more manufactures open their CKD plants here and thus create more job and more expertise among the locals.
thank goodness you are not a policy planner. what will distributors do with all the cbu stocks thats suddenly way out of reach thus with a smaller market. what a way to screw investors. stop tunggang b40 for clout
What’s your point? B40 contributed more than 60 percent of Malaysian population.
T20 contribute more than 60% of tax.
pity tricyclist naive thought due to wrong education since birth….
What happened to removing APs for all EVs effective 2023?
EV means full electeic vehicles? So no chance for civic hybrid! Sorry honda. Your car is meant for T20 only and its already approaching 200k figure. More choices in that price range. Good luck honda
no..EV means Elephant Virg1n@
Agree. This is Malaysia’s opportunity to make the country the EV manufacturing Centre, or at least the Ev component Centre, the country is already a strong electronic/electrical base in Penang. More open industrial policy will encourage investment & innovation…
I wonder what about the free approve permit fee which was announced previously.
Nothing to shout about. Exemption means the expensive roadtax for will take wffect from 2026 onwards. If extension continues and reduced roadtax, this will means reduced petrol subsidy or increased electric tariff
This only benefits the wealthy that can afford the EV’s high price in the first place. Whether or not they get an exemption doesn’t change their life much, it’s just another car in the collection. Those at the bottom (B40) as usual won’t benefit from this at all.
There will be some impact. Those EV users will not be using any petrol subsidy.
Why are we playing catch-up with Thailand and INdonesia in the EV game with soft EV policies? We should implement more aggressive policies that give manufacturer choices when they choose between Thailand or Indonesia.
But we dont have the population volume. we are only 30 millions in number. indo has 300 million
Strategy comes in many way. We dont have the volume like thais and indon but an aggresive strategy wd involve policy, local manufacturer like proton and perodua. We re behind because kuat sangat berpolitik. Just imagine 5 PMs in 2 years?
And 20millions are B40 and 80% of that still have tongkat mindset…
Production of EVs destroy the environment more than petrol cars. And you still need to burn carbon fuels to produce most of the electricity to charge EVs.
True. It means TNB has to buy green power from sarawak
If they want to be serious about encouraging EVs, they should remove all petrol subsidies and trasfer it to purchase subsidies for EVs instead.
tax free tapi stil mire expensive than other countries. Because of AP?
Kopi0 T20 vs American0 T20,
Gaji jauh beza
Tax free for the rich?
What a joke.