Min CIF for CBU EVs curbs under-declaration – Sim

Malaysian deputy investment, trade and industry (MITI) minister Sim Tze Tzin today said in the Dewan Rakyat that setting a minimum cost, insurance and freight (CIF) value for fully-imported (CBU) EVs helps to curb under-declaration and maintain government revenue collection, Bernama reports.

Julau MP Datuk Larry Soon @ Larry Sng Wei Shien was asking why the RM200k CIF and 180 kW (245 PS) floors were only imposed on CBU EVs. Sim replied that the government takes a different approach to EVs and ICE vehicles as they were at differing stages of industrial development.

“For EVs, the government needs to balance two objectives simultaneously, namely accelerating the use of EVs among the rakyat and developing the local assembly industry, supply chain and the entire EV ecosystem so that Malaysia is not just a consumer market.

Min CIF for CBU EVs curbs under-declaration – Sim

“Besides, the tax and incentive structure for EVs is different from ICE vehicles. Currently, the excise duty rate for EVs is only 10%, much lower than for ICE vehicles, whose excise duty rate depends on engine capacity, vehicle type and level of localisation,” Sim said.

EVs’ lower excise duty rate makes determining their import value more critical to ensure the tax is calculated accurately, he explained, adding that having a minimum CIF value lowers the risk of declaring an import value lower than the actual value.

“Hence, setting a minimum CIF value is one of the policy mechanisms to reduce the scope for under-declaration and ensure that government revenue collection continues to be maintained,” he said.

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