EV Tax Exemption to be Continued, Incentive Up to 10 Years – MAA

MAA President, Datuk Aishah Ahmad

The Malaysian Automotive Association (MAA) expects the government will continue the tax exemption for electric vehicles (EV) in the upcoming Budget 2023.

MAA president, Datuk Aishah Ahmad said, the act of ending the incentives offered for EVs is still too early.

"We are requesting the extension of full import and excise tax exemptions for ready-to-build units (CBUs) of EVs while the market is gearing up for the growth of EVs in Malaysia.

"We hope there will be incentives for up to 10 years," she told Bernama.

Smart #1 EV that’s coming to Malaysia soon

Based on Budget 2022, buyers of imported EVs or CBUs can enjoy 100% tax exemption until 31 December 2023 and locally assembled EVs or CKDs until 31 December 2025. These incentives are offered to attract more Malaysians to switch to EVs and encourage car manufacturers to install EVs in the country.

So far, the initiatives to fully install EVs in Malaysia are still ongoing and CBU unit EV sales figures also started to show an increase after Budget 2022 was introduced.

However, the use of EVs in our country is not yet widespread as we are still in the phase of improving the country's EV infrastructure hence it is wise to continue EV tax exemption especially for automotive players.