Govt offers incentives for electric vehicles – Azmin

Govt offers incentives for electric vehicles – Azmin

05 Oct 2021

The government has offered incentives in the form of direct and indirect tax relief for the assembly or manufacturing of electric vehicles (EV), component parts, and the development of EV ecosystems such as charging facilities.

Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali said among the incentives are pioneer status for the production of original goods, investment tax allowance, and the exemption of import and excise duties.

“Malaysia takes 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 told the Dewan Rakyat during his winding-up speech for his ministry for the recently tabled 12th Malaysia Plan (12MP).

The minister said the National Automotive Policy underlines specific initiatives to strengthen the EV ecosystem, such as critical parts manufacturers, standard-setting, and encouraging research and development, commercialisation, and innovation to develop local technologies.

“The ministry is refining the incentive package to encourage the use of EVs, this includes road tax exemption, income tax relief for the purchase of EVs, as well as income tax relief for installation of EV charging facilities,” he added.

Commenting on trade, Mohamed Azmin said the government realises that for the economy to recover it needs to have business-friendly policies, which is why trade agreements such as  the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership CPTPP) need to be ratified.

“These free trade agreements will widen the export market for local products through the reduction or abolishment of import duties in member countries as well as the reduction of non-tariff barriers,” he added.

Source: Bernama