During the submission of Budget 2023 (Bajet 2023) last year, it was announced that fully imported (CBU) electric vehicles (EVs) would be exempt from import duties and excise duties until 31 December 2024. This is an extension of the previous deadline set by the previous government when Budget 2022 (Bajet 2022) was unveiled, which was 31 December 2023.

Other incentives currently in place include Locally Assembled (CKD) EVs, which are exempt from excise and sales tax until 31 December 2025, while the components used to manufacture them are exempt from import duties – all EVs Road tax exemption until said date.

Apart from buying EVs, Budget 2023 also wants to attract manufacturers of EV charging equipment, offering 100% income tax exemption from 2023 to 2032 and 100% investment tax credit (Elaun Cukai Pelaburan).

At the same time, car importers looking to introduce EVs will also be incentivized as they will not be required to pay Approved Permit (AP) fees. Budget 2022 also includes personal income tax relief of up to RM2,500 for installation, rental, purchase and rental of equipment or subscription fees for the use of electric vehicle charging facilities.

The 2023 Budget will be revised with the new government, but we will only know what it contains when it is tabled in the House of Commons on 24 February 2023.For those who want more EV incentives included in the revised Budget 2023, Minister of Natural Resources, Environment and Climate Change Nik Nazmi Nik Ahmad said in a report Bernama The government will seek to do so.

“The government looks forward to announcing more EV-related incentives in the revised Budget 2023,” Nik Nazmi said yesterday at the signing of a Memorandum of Understanding between Cyberview and Roda Emas Industries to develop a smart mobility ecosystem in Cyberjaya above said. He also previously commented that the government is trying to make electric cars below RM100,000 cheaper.

According to the Ministry of Road Transport (JPJ), more than 10,000 electric vehicles have been registered in the country and the government hopes to further increase the adoption rate of electric vehicles. International Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz previously said efforts were being made to attract EV investment and achieve the national target of EVs and HEVs accounting for 15% of total industry (TIV) by 2030, and 38% by 2040. year percentage.

There is still some time before Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim presents the revised 2023 Budget. What additional EV incentives would you like the government to offer?

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