![MAA: To attract meaningful investments into EVs, extend tax cuts to 10 years 01]()
The current import and excise tax exemptions for battery electric vehicles (battery EVs) is set to expire by 31-December 2023. The Malaysia Automotive Association (MAA) is of the opinion that the exemption period, which was announced in Budget 2022, is too short to see any meaningful investments into EVs.
“We seek extension of full import and excise tax exemption for CBU EVs while the market is preparing for the growth of EVs in Malaysia. We hope there will be incentives for up to 10 years,” said MAA president Datuk Aishah Ahmad to Bernama, on the topic of the automotive industry's wish list for Budget 2023.
Datuk Aishah added that although efforts to locally assemble EVs is progressing, only 274 EVs were registered in 2021.
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Between now until 31-December 2023, EVs only need to pay the 10 percent sales and services tax (SST). Import and excise tax is waived, as is vehicle licensing fee (which we colloquially refer to as ‘road tax’).
![MAA: To attract meaningful investments into EVs, extend tax cuts to 10 years 01]()
Locally-assembled EV models like the Volvo XC40 EV (the only CKD EV on sale here), will enjoy the benefits for a longer period, until 31-December 2025.
| Tax incentive for BEVs, Malaysia |
| |
CKD |
CBU |
| Import tax |
0%
1-Jan 2022 - 31-Dec 2025 |
0%
1-Jan 2022 - 31-Dec 2023 |
| Excise tax |
0%
1-Jan 2022 - 31-Dec 2025 |
0%
1-Jan 2022 - 31-Dec 2023 |
| Road tax |
RM 0
1-Jan 2022 - 31-Dec 2023 (tbc) |
| Personal income tax |
Up to RM 2.5k rebate for expenses on BEV charging hardware / services |
Over 15 years of experience in automotive, from product planning, to market research, to print and digital media. Garages a 6-cylinder manual RWD but buses to work.
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