Budget 2023, What Is Its Outlook For The EV Front

The government has shown its utmost commitment in further developing and bettering the Electric Vehicle (EV) industry as we are moving towards 2023. In view of this the 2023 budget tabled today by the Finance Minister, Tengku Datuk Seri Zafrul Tengku Abdul Azizis was basically a spin-off of the 2022 budget with further added incentives to spur the EV ecosystem. 

Below are some of the efforts announced today in the Budget 2023.  

1. The expansion of the Green Technology Financing Scheme (GTFS) coffers to 3 billion is to now include the EV sector with a guaranteed support of up to 60%. Furthermore there would be added benefit from the Green Investment Tax Allowance (GITA) dan Green Income Tax Exemption (GITE) hingga 31 Disember 2025. 

2. Exemption of import and excise duties for all CBU EV to be extended until 31 December 2024, although there was no mention of any CKD models, we can rest assured similar saving would trickle down eventually. 

3.  AP fees to be waived for all importation of EV until 31 December 2023. This does not mean you or me can start buying our own EV and shipping it in for our personal use, you would still have to buy through the correct channel ie. the AP holders under PEKEMA. 

4. EV charger manufacturers to benefit from 100% income tax exempted on statutory income for assessment year 2023 right up to 2032. They will also benefit from 100% investment tax allowance. 

   
   

Furthermore, Tengku Zafrul added that GENTARI (owned by Petronas) has been set-up to further develop clean energy sources. Since its inception GENTARI was committed to solar panel development in public and government facilities and would be ramping it up in 2024 with a commitment of setting up 500 units of EV chargers throughout the nation.   

Malaysia's national energy supplier Tenaga Nasional Berhad (TNB) on the other hand echoes what GENTARI is working on with a RM165 million investment pledge for the installation of EV chargers nationwide. The government is also committed to push the nation's first low carbon island project at Pulau Tuba, Langkawi to success. The motorcycle rental operators in the island are also being offered up to RM4,000 sales rebate when they switch their petrol powered motorcycles to electric ones.