Although not mentioned in Finance Minister and Prime Minister Datuk Seri Anwar Ibrahim’s Budget 2023 speech tonight, there are updates on EV policies in the re-trafficked budget. These were included in the touch points issued later in the evening.
The current import duty and excise tax exemption for fully imported (CBU) electric vehicles will now be extended by another year. December 31, 2025. It originally ended on December 31, 2023, but was extended to December 31, 2024 in the first presentation of the 2023 budget.
That’s not all. Exemption from excise duty and sales tax for locally assembled (CKD) electric vehicles has also been extended – until now. December 31, 2027two years more than the original deadline, which was December 31, 2025.
Similarly, import duty free period for parts used for local CKD assembly of electric vehicles. The period, originally until December 31, 2025, was extended by two years, until December 31, 2027.
As announced in the first presentation of the budget last October, the government will grant a 100% income tax exemption from 2023 to 2032 to manufacturers of charging equipment for electric vehicles. In addition, it provides a 100% investment tax credit (Elaun Cukai Pelaburan) to these manufacturers. for a period of five years.
