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MGTC expects Gita, Gite incentive period extension to spur green investment, EV sector

MGTC expects Gita, Gite incentive period extension to spur green investment, EV sector

27 Feb 2023

The incentive period extension for Investment Tax Allowance (Gita) and Green Income Tax Exemption (Gite) schemes until December 31, 2025 for eligible green activities through Budget 2023, will further spur green investment such as in the electric vehicle (EV) sector, said the Malaysian Green Technology and Climate Change Corporation (MGTC).

Its chief executive officer Shamsul Bahar Mohd Nor said since 2016, the initiative had led to an investment of RM5.2 billion, a reduction of 10.7 million tonnes of carbon dioxide equivalent and operational cost savings of RM880 million per year for 1,091 companies.

“We welcome the optimistic development in the EV space where more charging facilities will be installed in focal locations.

“The excise duty and sales tax exemption for locally assembled (completely knocked down or CKD) EVs have also been extended until Dec 31, 2027, likewise the import tax exemption period for components used in local CKD assembly of EVs,” he said in a statement today.

Shamsul Bahar said at the same time, manufacturers of EV charging equipment will be given a 100 per cent income tax exemption on statutory income or a 100 per cent investment tax allowance.

This plan will promote the development of the local EV industry and support its adoption in the country.

On the increase of total financing under the green technology financial scheme to RM3 billion to be utilised from 2023 to 2025, he said the initiative is expected to attract more developers to produce low-carbon infrastructure facilities and green buildings, as well as drive the growth of enterprises that support the implementation of circularity.

“Profoundly, Budget 2023 addresses crucial areas to help ensure that the country continues to develop and achieve commendable green economic expansion.

“With our expertise and capacity, MGTC will implement all the initiatives effectively to help steer our country toward achieving the 2030 Sustainable Development Goals,” Shamsul Bahar said.

He added it is inspiring to see the government making substantial provisions to enhance environmental sustainability and MGTC will support this progress to conserve and restore nature through green technology.

“We strongly urge the industry players to support these incentive proposals to foster economic growth and development while ensuring Malaysia’s natural assets continue to thrive,” Shamsul Bahar said.

Source: Bernama