Budget 2023: Extension of EV tax exemptions, more incentives
25 Feb 2023
The government has extended a number of tax exemption deadlines to incentivise local electric vehicle (EV) uptake.
This includes a 2-year extension of the excise duty, sales tax exemption, and import tax exemption for components used in locally-assembled (CKD) EVs to Dec 31, 2027 – previously until Dec 31, 2025.
Import and excise duty exemption for fully-imported (CBU) EVs have also been extended to Dec 31, 2025 which was previously set to the end this year before it was previous extended in the first tabling of Budget 2023 to Dec 31, 2024.
These exemptions were not mentioned during the Malaysia MADANI Budget 2023 tabling by Prime Minister Datuk Seri Anwar Ibrahim on Friday, but was instead listed in the Budget 2023 Touchpoints which was made available at a later time on https://budget.mof.gov.my/ms/.
Other EV related touchpoints listed includes a full tax exemption for EV charging equipment manufacturers from 2023-2032, as well as a complete Investment Tax Allowance for them over a 5 year period.
Companies are entitled to a tax deduction should they rent EVs with a maximum qualified amount limited to no more than RM300,000.
Gentari is said to be setting up 500 public EV chargers across the country, and there’s an allocation of RM90 million to Tenaga National Bhd (TNB) to install EV charging facilities across 70 targeted locations.