29th October 2021 - 1 min read
The government will be doing its part to stimulate interest in electric vehicle (EV) adoption in the country, proposing various tax incentives under Budget 2022 covering both purchase and maintenance of the vehicles.
Finance Minister Tengku Zafrul Aziz announced that the government will support the local EV industry by introducing full exemptions on import and excise duties on these vehicles, as well as full sales tax exemption (currently, the latest sales tax exemption for locally-assembled vehicles is 100% and 50% for fully-imported vehicles).
On top of that, the government will fully waive the road tax for EVs as well as individual income tax relief of up to RM2,500 for the cost of purchase & installation, rental, and subscription of EV charging facilities.
The incentives above will mean considerably more affordable prices for EVs in Malaysia, since virtually all taxes linked to normal vehicles are waived or exempted. In turn, this may prompt manufacturers to sell their EVs here and more importantly, encourage more Malaysians to purchase these energy efficient vehicles and help the country meet its goal of being carbon-neutral by 2050.
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