There are updates related to electric vehicle (EV) policies in the re-enacted budget, although Finance Minister and Prime Minister Datuk Seri Anwar Ibrahim did not mention it in his Budget 2023 speech earlier this evening. These are included in the touchpoints published later in the evening.
The current import duty and excise duty exemption on fully imported (CBU) electric vehicles will now be extended for a further year to December 31, 2025. It was originally scheduled to end on December 31, 2023, and was then extended to December 31, 2024 in the first submission of the 2023 budget.
That’s not all.Excise duty and sales tax exemptions for locally assembled (CKD) electric vehicles have also been extended – now until December 31, 2027two years beyond the original deadline of December 31, 2025.
Likewise, import duty holidays for components used in local CKD assembly of EVs. Originally scheduled to run until December 31, 2025, it has been extended by two years to December 31, 2027.
As announced in the first Budget statement last October, the government will provide 100% income tax exemption for manufacturers of electric vehicle charging equipment for the years of assessment 2023 to 2032. It will also provide these manufacturers with a 100% investment allowance (Elaun Cukai Pelaburan) for five years.