Along with the other announcements made during the tabling of Bajet 2022 earlier today, the government has also detailed the various initiatives planned for the development of electric vehicles (EVs) in Malaysia. According to finance minister Tengku Zafrul Tengku Abdul Aziz, the government sees the potential of EVs to help reduce air pollution, on top of also being energy efficient.
In support of the development of the local electric vehicle industry, the government has announced that EVs will be fully exempted from import duty, excise duty, and even sales tax. Apart from that, an income tax relief of up to RM2,500 will be granted to individuals for the purchase, installation, rent, hire purchase, as well as subscription fees for EV charging facilities. Tengku Zafrul also revealed that EVs will receive a 100% road tax exemption.
Most of the EV-related initiatives mentioned in parliament earlier today were previously placed under study and consideration by the government prior to the Bajet 2022 tabling. As we’ve reported earlier this month, plans of introducing full road tax exemption and income tax relief were among several subjects that were mentioned by international trade and industry minister Mohamed Azmin Ali when asked regarding the government’s plan for EV growth in Malaysia.
In another announcement related to the topic of automotives, Tengku Zafrul also announced that the 100% sales tax exemption for CKD vehicles will be extended until 30 June 2022. This six month extension will apply to the 50% discount for CBU cars, MPVs and SUVs as well, he added.