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 effort to support the EV market but to end some of the current incentives in 2023 is too early.
“We seek an extension of full import and excise tax exemption for completely built-up units (CBU) 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 the national news agency.
Adding, while efforts for locally assembled completely knocked-down (CKD) EVs may be in 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 the total industry volume (TIV) of 508,911 units. Budget 2022 offered 100 percent exemption of import and excise duties as well as zero road tax for CBU EVs up to Dec 31, 2023, and 100 percent duty exemption for CKD EVs up to Dec 31, 2025