Earlier this year, it was reported that Malaysia’s new electric vehicle (EV) policy would offer a “handsome level” of tax incentives, including fixed incentives that will benefit both the auto industry and to users, as well as a host of other benefits for EV users. .
Among these benefits, there is a complete exemption from road tax mentioned earlier, but income tax relief plans for the purchase of electric vehicles as well as for the installation of electric vehicle chargers are also being introduced. in the study, The edge reports. According to the Minister of International Trade and Industry, Datuk Seri Azmin Ali, these measures are part of the incentives being considered to encourage the ownership of electric vehicles and the development of related infrastructure in the country.
He said the government would consider various angles in formulating the new policy, the general direction of which was again emphasized in the 12th Malaysian Plan (RMK-12). Malaysia will adopt the ‘compare and offer’ approach by forming a comprehensive, clear and consistent policy to incentivize the use of electric vehicles, while our regional competitors will focus on incentives for OEMs (original equipment manufacturers). ), “he told Dewan Rakyat earlier today.
He said the National Automobile Policy Update (NAP 2020) will highlight specific initiatives to strengthen the electric vehicle ecosystem, such as critical parts manufacturing, standard setting and encouragement of research and development, marketing and innovation to develop local technologies.
Incentives will take the form of direct and indirect tax breaks for the manufacture of electric vehicles, the manufacture of spare parts and the development of ecosystems such as charging infrastructure, and the incentives for OEMs include pioneer status, a tax deduction for investment as well as exemption from import and excise duties for electric vehicles.
This is a reiteration of what was said last month, when Azmin said plans were being made for a package of incentives to attract investment in addition to strengthening existing incentives. for the production of vehicles and electrical components in the country.