Tax exemption extension to boost electric vehicle sales

 

The extension for import duty and excise tax exemption for completely built-up units (CBU) electric vehicles (EVs) under Budget 2023 will increase EV sales in Malaysia and boost industries associated with it.

Malaysia Automotive Association (MAA) president Aishah Ahmad said the association is grateful for the extension announced by the government even though initially it had hoped for an extension of up to 10 years.

“I believe that with the extension, the EV industry will benefit as more people will buy EVs.

“The EV downstream industry will gain as well through the increase in charging stations and this is good for the EV industry as a whole,” she told Bernama.

Meanwhile, in a statement today, Gemilang International Ltd, a body solution for commercial vehicles company, said the government's decision to exempt EV import taxes till the end of 2024 will contribute to an increase in the demand for EVs in Malaysia.

Its chairperson and chief executive officer Pang Chong Yong said he also hoped that there would be more initiatives to promote the development of EV buses in Malaysia and to create a green operating environment for the bus industry.

“The government's allocation of RM180 million for the bus sector to increase the outreach to passengers in Malacca, Kota Kinabalu and Kuching bodes well for bus makers like us.

“We are already collaborating with the state governments of Sabah and Sarawak on the introduction of EV buses within the state, which is currently in the trial stage,” he said.

- Bernama