MAA wants the government to extend EV incentives for up to 10 years.
The tax incentives for electric vehicles have caused a flurry of EVs in Malaysia, and the Malaysian Automotive Association (MAA) wants the incentives to continue beyond 2023 to help grow the EV market even further.
MAA: Extend the import and excise tax exemptions for CBU EVs beyond 2023
According to a report by Bernama, Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said the association appreciates the government's efforts to support the EV market, but ending some of the current incentives in 2023 is too early.
"We are requesting the extension of full import and excise tax exemptions for CBU EVs while the market is gearing up for EV growth in Malaysia."
"We hope there will be incentives for up to 10 years," she told Bernama.
Extend EV incentives up to 10 years
While efforts for CKD EVs are ongoing, EV sales figures from CBU units are beginning to reflect an increase this year as the incentives introduced during the 2022 Budget are starting to show impact.
The 2022 budget offered 100% import and excise duty exemption and zero road tax for CBU EVs until December 31, 2023, and 100% duty exemption for CKD EVs until the end of 2025.
The plea from MAA for the extension is of course their attempt to influence the outcome of the 2023 budget, which is due to be tabled on October 7.
Only 274 EV units were registered in 2021, out of an industry total (TIV) of 508,911 units. Although nothing has yet to be publicised regarding 2022 EV sales, we're pretty sure it has dramatically increased, thanks to the introduction of new EVs due to the tax exemptions.