Zero tax for EVs in Malaysia soon, but there's a catch

Prices of electric vehicles (EVs) in the near future could be cheaper, as a draft roadmap by the Malaysian Green Technology and Climate Change Centre (Greentech Malaysia) revealed.

As part of the upcoming roadmap aptly called Low Carbon Mobility Blueprint (LCMB), one of the proposals is to waive excise duty and import tax for up to 100,000 units of EVs until 2022. Though curiously, if you take a look at the LCMB booklet (which can be downloaded on MGTC's website), the figure changes to 10,000 units.

After the duty exemption expires in 2022, taxes will be increased in stages, starting at 50% of the normal rate in 2023.

With this tax exemption in place, it could potentially mean that imported EVs like the Nissan Leaf could see a price reduction. At the moment, the Nissan Leaf is priced at RM 181,263.

Apart from that, this move could also mean that Chinese EVs that has been spotted here. such as the MG ZS EV, Ora Good Cat, DFSK Glory EV3, and Borgward BXi7, could be priced more competitively. 

The roadmap also proposes full tax exemption for EVs used in government fleet as well as taxi and ride hailing sector. Maybe your next Grab ride could pick you up in a Nissan Leaf?

The same roadmap also proposes allocation for public charging infrastructure and support for manufacturing of EVs locally, though specific investors were not mentioned.

Unlike neighbouring countries like Thailand and Indonesia, Malaysia is far behind in the EV game. For example, Thailand’s Board of Investment (BoI) wants EVs to account for 30% of their national production by 2030.

Also Read: Thailand targets 30% EV and hybrid production by 2030

Indonesia, on the other hand, has the world’s largest reserve of nickle and has attracted investment from LG Chem, CATL, Hyundai, and Tesla.

Also Read: Indonesia leads SEA in EV adoption, research by Nissan suggests

With all said and done, this roadmap is still in draft stage and is subjected to the Cabinet's approval.