KUALA LUMPUR – Automotive players are hoping for an extension of tax breaks for electric vehicles (EVs) in the upcoming Budget 2023.
Malaysia Automotive Association president Datuk Aishah Ahmad said the association is appreciative of the government’s efforts to support the EV market, but to end some of the current incentives in 2023 is too early.
“We seek the extension of full import and excise tax exemptions for completely built-up units (CBU) of 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 Bernama.
She said while efforts for locally assembled completely knocked-down (CKD) EVs may be on progress, EV sales figures from CBU units have started to climb this year as Budget 2022 incentives kicked in.
Only 274 units of new EVs were registered in 2021, from a total industry volume of 508,911 units.
Budget 2022 offered 100% exemption of import and excise duties as well as zero road tax for CBU EVs up to December 31, 2023, and 100% duty exemption for CKD EVs up to December 31, 2025. – Bernama, September 2022
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