The Malaysian Automotive Association (MAA) has said the current tax break for fully-imported (CBU) electric vehicles (EVs) needs to be extended until 2030 to meet the country’s targeted EV adoption target of 15% of total sales volume by 2030.
“First of all, EVs are still at the infancy stage. There is a need for the government to nurture and support the growth of EVs, especially in terms of incentives. So, the government should consider expanding the present tax incentive, especially for CBU EVs. Our feeling or alignment is at least until 2030, basically in line with the aspiration of the government to meet the 15% EV objective,” said MAA president Mohd Shamsor Mohd Zain.
“The target was 2030, 15% for EVs [of total vehicle sales], so we feel that the incentives should be extended until 2030 to continue the momentum. As far as the MAA is concerned, we will continue to engage and work with the authorities to see if we can do this. Of course, last year there was no announcement because there is still a continuation [of incentives] this year, so we hope that there will be further developments this year,” he added.
At present, CBU EVs are exempted from import duty and excise duty until December 31, 2025, as announced during the tabling of Budget 2023. It was originally set to end in December 31, 2023 before being extended in the first tabling of Budget 2023 to December 31, 2024.
According to the MAA, EV sales benefitted from incentives and the introduction of new models to surged 45% in 2024. However, sales of electrified vehicles, which include both EVs and hybrids, only accounted for 5.6% of last year’s total industry volume of 816,747 units – this is higher than 4.8% in 2023. Locally-assembled (CKD) EVs are currently exempt from excise duty and sales tax until December 31, 2027, two years more than the original deadline, which was December 31, 2025.
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When EV sales throttled down even slower later, you’d ask beyond 2030. Just extend it forever la. It’s not like manufacturers would produce a quality EV with sane price anyway (except for Chinese brand of course).
But have you driven chinese cars and even tesla, where quality is better than any other cars that produces EV?
Perhaps reduce the CBU tax break to 50% or 25%? Keeping it at 100% is counterproductive because only rich people can afford CBU EVs.
Do you consider buying RM200k EV is rich? Now, even have EV below RM150k! Not wonder Malaysia government keep saying we are rich!
You need to wake the F up if you don’t think buying a 200k car is rich. Just look at our median income, I implore you. I also don’t want to pay more for cars as an enthusiast same as you, but why should we keep subsidizing people who are capable?
If extend the CBU tax break then those who invested to CKD and local production will u-turn and run to Thailand and Indonesia instead. Waste time and money set up local production only to kena game in the end.
If want the % of BEVs to increase then allow any manufacturer to sell BEV at any price then get rid of that stupid 100k limit. Not all can afford a 100k to 200k BEV. Some just want a 40k-50k BEV which is enough for daily commute in town.
please la.. have a thought for those cronies please.. they need to feed their family… hooray for cronies!
EV is the future
You are sacrificing your freedom.
Once EV is fully implemented..the gov can prevent you from going anywhere you want…
Have you heard of Geofencing?
Have you heard of Agenda 2030 by the WEF?
Go look it up these 2 in google
Better build more charging station
Chicken and egg. No EVs, no CPO wants to build CP. No CPO wants to build, less people buy EVs.
Slowly lower the minimum price to RM75k, RM50k, then fully remove when Proton/Perodua are ready with their <RM50k EVs
So this is where the savings from diesel/petrol subsidies go.
Yes. I do support this extension. So that every manufacturer manage to setup their assembly plants here and manage to secure more job opportunities to our local. 2023 declared EV taxes break, then government expects this brands can setup here? u think setup an papermade factory meh??Pakai sikit common sense la…
Just look at what happened to Hybrid tax break last time, you will get your answer on how the industry gonna move forward.
push hybrid first la. not everyone is ready to accept charging especially infra not complete.
move them half step via hybrid then transition to EV la…
give the tax break or reduced duties on hybrid vehicles.
So simple also cannot think?
Yet, more people are accept ev without any complains especially when comes about charging electric car
“First of all, EVs are still at the infancy stage. There is a need for the government to nurture and support the growth of EVs, especially in terms of incentives. So, the government should consider expanding the present tax incentive, especially for CBU EVs. Our feeling or alignment is at least until 2030, basically in line with the aspiration of the government to meet the 15% EV objective,” said MAA president Mohd Shamsor Mohd Zain. ”
MAA President has a valid point – we are guinea pigs to this “new” technology cars. They expect the people to pay 100% for their experiments to perfect the tech is not fair. There should be incentives in place to encourage people to “participate” in this EV program. Forcing it down the throat of the people is the worst idea.
Talk is cheap. Easier said than done.
EV target set by the malaysian government was for BEV and Hybrid 20% by 2030 not 15%?
Investor will come if there is long term policy that benefit them. By keep on extending will create more uncertainties. How to invest. Just maintain the tax free indefinitely, and remove the 100k cap for those brand who meet the investment criteria.