The government may introduce comprehensive changes to green technology tax incentives in Budget 2024.
Finance Ministry under-secretary Datuk Che Nazli Jaapar said the current green technology tax incentives will expire at the end of this year.
“We are thinking of doing comprehensive changes or an enhancement of the incentives.
“That is why we preferred not to announce it under Budget 2023 in February and consider announcing it in October this year,” she said during a Budget 2023 seminar here on Monday (March 13).
To encourage the use of low-carbon vehicles, she said the government may provide tax deductions on the procurement of electric vehicles (EV) in the future.
In the retabled Budget 2023, the government announced that companies that rent out EVs will enjoy tax deductions if the maximum amount of rentals is no more than RM300,000.
“The government is aggressively trying to promote EVs by giving so many tax incentives and we would continue to encourage local players to localise the EV assembly in Malaysia and create a hub in the country,” she added.
