Budget 2023: Complete electric vehicles in Malaysia are now tax-free until the end of 2025; CKD exemption until December 31, 2027
Although it was not mentioned during the time of finance minister and prime minister Datuk Seri Anwar Ibrahim Budget speech 2023 Earlier this evening, there were updates regarding the electric vehicle (EV) policy in the revised budget. These are included in the contacts that are released later in the evening.
The current import tax and excise tax exemption for complete imported electric vehicles (CBUs) will now be extended for another year to December 31, 2025. It was originally set to end in December 31, 2023before being expanded in tabulate the first Budget 2023 through December 31, 2024.
That’s not all. The exemption from excise and sales tax on domestically assembled electric vehicles (CKD) has also been extended – it is now in effect until December 31, 2027two years more than the original deadline of December 31, 2025.
Likewise, the import duty-free period applies to parts used in locally assembled CKD electric vehicles. Originally set to run until December 31, 2025, it has been extended by two years to December 31, 2027.
As announced in the first budget tabulation last October, the government will waive 100% of income tax for manufacturers of EV charging equipment from the evaluation year 2023 to 2032. The government will also provide support. 100% investment tax for these producers (Elaun Cukai Pelaburan) for a period of five years.
