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Malaysia to offer tax and duty incentives to promote EV use and investments, policy to be clear – Azmin

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 automotive industry and users as well as a host of other benefits for EV adopters.

Among these benefits are a previously mentioned full road tax exemption, but plans for income tax relief for both the purchase of EVs as well as for the installation of EV chargers are also being looked at, The Edge reports. According to international trade and industry minister Datuk Seri Azmin Ali, these are among the incentives that are being studied to encourage EV ownership and the development of related infrastructure in the country.

He said the government would look at various angles in formulating the new policy, the general direction of which was again highlighted in the 12th Malaysia Plan (RMK-12). “Malaysia will take the ‘compare and offer’ approach by forming a comprehensive, clear and consistent policy to entice EV use, while our regional competitors focus on incentives to OEMs (original equipment manufacturers),” he said at the Dewan Rakyat earlier today.

He said the update to the National Automotive Policy (NAP 2020) will underline specific initiatives to strengthen the EV ecosystem, such as the manufacturing of critical parts, standard setting, and encouraging research and development, commercialisation and innovation to develop local technologies.

Incentives will come in the form of direct and indirect tax relief for manufacturing of EVs, parts manufacturing and ecosystem development such as charging infrastructure, and incentives for OEMs include pioneer status, an investment tax allowance as well as import and excise duty exemption for EVs.

This is a reiteration of that stated last month, when Azmin said that that plans were being drawn for an incentive package to attract investment in addition to strengthening existing incentives for the production of EV vehicles and components in the country.

The post Malaysia to offer tax and duty incentives to promote EV use and investments, policy to be clear – Azmin appeared first on Paul Tan’s Automotive News.

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