Budget 2023: Complete electric vehicles in Malaysia tax-free until the end of 2024; Free AP – EVs are even cheaper soon?
The current Tengku Finance Minister Datuk Seri Zafrul Tengku Abdul Aziz will extend the import tax and excise tax exemption for electric vehicles for another year. Budget 2023.
During last year’s Budget review, it was announced that Electric vehicles will be exempt from import tax and excise taxwith the exemption period until December 31, 2023 for complete imported EVs (CBUs) and until December 31, 2025 for domestically assembled electric vehicles (CKDs).
With Budget 2023, Zafrul said the exemption for CBU electric vehicles will be extended for another year through December 31, 2024 – no mention has been made of CKD electric vehicles. In any case, this is definitely good news for the car companies here who are planning to bring EV models soon as well as car buyers looking for a zero-emission vehicle.
The Malaysian Automobile Association (MAA) previously said it wanted the electric vehicle incentives to continue 10 yearsbut it looks like they’ll have to settle for one more and see what happens next in Budget 2024.
Car importers looking to bring in electric vehicles will also be encouraged to do so as they will not need to pay an approved license fee (AP). This is new and could make electric vehicles even cheaper, as long as companies save from not paying AP fees to customers. Free AP will be in effect from January 1 to December 31, 2023 and again, only for electric vehicles.
