Putrajaya will introduce several electric vehicles (EV) incentives Budget 2024, as part of its initiatives to facilitate the energy transition process.
Prime Minister Datuk Seri Anwar Ibrahim, during the tabling Budget 2024 in Parliament today said there would be a scheme to encourage usage of electric motorcycles for individuals earning RM120,000 and below a year.
“The scheme is expected to provide rebates (to owners) for up to RM2,500,” said Anwar.
The Federal administration will also start using EV as official vehicles, while Putrajaya would be made an example of a low-carbon city in Malaysia.
“Putrajaya will begin installing solar panels on the roofs of government buildings by collaborating with TNB and Gentari.”
Anwar, who is also the Finance minister said the government would extend the Net Energy Metering (NEM) programme till Dec 31 next year to encourage more Malaysians to install solar panels in their residences.
“The government is also developing a programme to buy back solar panels at buildings with minimum cost implications.
“At the same time, the government urges companies to offer the ‘zero-capital’ subscription model, as offered by Gentari for homes,” added Anwar.
Meanwhile, Anwar said RM600 million will be allocated for Prasarana Malaysia Berhad to acquire 150 electric buses and to build three bus depots.
Anwar also said that the present income tax exemptions of up to RM2,500 for those spending on EV charging facilities will be extended for four more years.
“Tax rebates for EV vehicle rentals extended for two more years,” he added.
He also said the government would continue supporting socially responsible investments (SRIs).
“We decided to extend tax exemptions for fund management companies that handle SRI funds, as well as tax cuts on the issuance of SRI sukuk until the 2027 assessment year,” added Anwar.
Meanwhile, the government will give tax deductions to entities that sponsor tree planting activities or environmental preservation and conservation awareness projects certified by the Malaysian Forestry Research Institute (FRIM).
The Federal government, he said, will pioneer the issuance of biodiversity sukuk of up to RM1 billion involving the replanting of degraded forests that will generate carbon credits.
“A sum of RM10 million is provided to help ease the burden of losses incurred by people involved in wildlife conflicts,” he said, adding another RM10 million is allocated to implement a pilot project for the use of stimulant gas to benefit small rubber planters in a 1,000-hectare plantation.
Aside from that, the budget also see the increase the number of community rangers to 2,000 people instead of 1,000 people this year to increase the enforcement of permanent forest reserves, with RM60 million allocation on appointing rangers from army veterans and police.
Earlier, Anwar had also said that the government will introduce tax exemptions of up to RM300,000 for companies that have already spent on Measurement, Reporting and Verification (MRV) for carbon projects.
“This is to encourage more companies to volunteer in the carbon trading market. These expenses are deductible from the proceeds of the sale of carbon credits traded on the Bursa Carbon Exchange (BCX),” added Anwar.
BUDGET 2024 | The federal government will start transitioning its official vehicles from using internal combustion engine automobiles to electric cars beginning next year.
Finance Minister Anwar Ibrahim in his Budget 2024 speech said that this is a part of the government’s efforts towards lowering the country’s carbon emission.
