KUALA LUMPUR: Budget 2023 provides more incentives to spur the adoption of green vehicles, in line with the country’s target of becoming a carbon-neutral nation by 2050.
To encourage the use of electric vehicles (EVs), the government has proposed to extend import and excise duty exemptions for imported EVs by a year to Dec 31, 2024.
Also, there will be a approved permit (AP) fee exemption for EV imports till Dec 31, 2023.
Manufacturers of EV charging equipment will enjoy a 100% income tax exemption for 10 years (assessment years 2023 to 2032), as well as 100% investment tax allowance.
Meanwhile, GLCs and GLIC are committed to make investments of up to RM50bil in 2023.
These include green procurements of up to RM330mil alongside providing infrastructure for EVs.
Also, to support Tuba Island, Langkawi as the first low carbon island in the country, a sales rebate of up to RM4,000 will be given to rental motorcycles’ operators who replace their petrol-powered two-wheelers with electric motorcycles.
The automotive industry will also get a boost from the 50% excise duty exemption for the purchase of CKD (completely knocked down) or locally assembled vehicles used in the tourism industry, such as buses and passenger cars for rental.
BMW Group Malaysia managing director Hans de Visser welcomes the extension of the duty exemptions for imported EVs, alongside incentives for EV charging equipment manufacturers.
In a statement, de Visser points out that the group continues efforts to expand its BMW i Charging network – now spanning over 400 charging facilities across Peninsular Malaysia, Sabah and Sarawak – with partners Tenaga Nasional Bhd, EV Connection (JomCharge) and Siemens.
“We also believe in developing local talents capable of bringing the technology further in Malaysia.
“With our BMW High Voltage Expert certification, we aim to create a world-class EV-ready workforce within the country,” he adds.
The group’s all-electric BMW i fleet in the country consists of the iX, iX3, i4 and soon, the i7.
He points out that the group’s approach to electrified mobility and sustainability remains a collaborative one.
“Our environmental, social and governance goals has always been centred around the belief that it is a shared responsibility, and we remain ready to cooperate with local likeminded partners in Malaysia to develop action-based solutions on issues that affect us all,” says de Visser.
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