ENZHMS
Link Copiedcheck_circle
EV

After RM3.3B In Forgone Taxes, MITI Signals End Of 'Free Ride' As New EV Levy Studied

Sofea Najmi

Share via

thumb-ev-levy-malaysia-miti.png


If you've been eyeing a shiny new electric vehicle (EV) or already drive one around Klang Valley, you might want to brace your wallet.


The Malaysian government is officially studying a new sales levy on every EV sold in the country. The goal? To build a dedicated fund for expanding Malaysia's public EV charging network.


During a Dewan Negara sitting on Tuesday, Investment, Trade and Industry (MITI) Minister Datuk Seri Johari Abdul Ghani dropped a truth bomb that left many automotive observers stunned: Malaysia forgave a massive RM3.3 billion in tax revenues over the past four years to spur EV adoption, yet public charger investments completely fell flat.


"The Investment Simply Wasn't There" 


For the last four years, Malaysia rolled out the red carpet for imported (CBU) EVs with full exemptions on import duty, excise duty, and sales tax. The hope was that auto companies would reinvest their profits into building charging stations across highway stops, malls, and residential zones.


Chargesini-Pekin-80DC-Caricarz-(1).jpg


Instead, Malaysia ended up with plenty of high-tech cars on the road, and a severe shortage of plugs.


"After four years, when we looked for public charging stations, the investment from EV industry players was simply not there," Johari stated frankly in Parliament.


Because Putrajaya cannot afford to throw taxpayer money at a China-scale charging rollout on its own, MITI says car manufacturers and distributors can no longer expect a "free ride" without contributing to basic infrastructure.


Read: How To Buy Your First Electric Car Without Regrets: A Complete First-Timer's Guide


Live In A Condo Or PPR? The Minister Hears You 


home-charger-chargesini.png


If you live in an apartment, condominium, or People's Housing Programme (PPR) flat, you already know the pain: owning an EV without a private home charger feels almost impossible.


Johari explicitly highlighted high-rise residents as the primary victims of the current charger deficit. Without accessible public chargers nearby, EV ownership remains restricted to landed home owners who can plug in overnight.


Proceeds from the proposed EV levy would go directly into a dedicated fund to accelerate public charging hubs, especially in high-density residential areas.


Read: Is Malaysia Being Too Strict? How We Compare To Thailand’s 'EV Hub' Strategy


CBU vs CKD: M'sia Is Cracking Down On Foreign Brands 


The end of the import tax holiday means the era of cheap fully imported (CBU) EVs is officially winding down. However, locally assembled (CKD) EVs will retain tax exemptions until December 31, 2027.


Why the distinction? MITI is taking a firm stance on foreign manufacturers.


"If companies bring in all their components from overseas, assemble and sell vehicles here, and expect incentives, we cannot allow that," Johari warned.


To get future government perks, car brands must integrate local Malaysian vendors into their supply chains, following the footsteps of Proton and Perodua, which support a massive network of 733 local Tier-1, Tier-2, and Tier-3 manufacturers.


Read: MITI Won’t Cap EV Charging Rates: What "No Price Control" Means For Malaysian Drivers

Frequently Asked Questions

Why is the Malaysian government considering a new EV levy? +

The Investment, Trade and Industry Ministry (MITI) is studying a sales levy on every new electric vehicle sold to establish a dedicated public charging fund. This mechanism ensures that nationwide infrastructure can grow sustainably without relying solely on vehicle manufacturers or distributors.

What does the RM3.3 billion in forgone taxes actually mean? +

Over a 4-year period, Putrajaya waived import duties, excise duties, and sales tax for imported completely built-up (CBU) EVs to encourage market entry. This resulted in RM3.3 billion in uncollected tax revenue. Minister Datuk Seri Johari Abdul Ghani revealed that despite these massive incentives, private sector investment in public charging infrastructure remained far below expectations.

Will imported (CBU) EVs and locally assembled (CKD) EVs be treated differently? +

Yes. Full tax incentives for imported CBU EVs have ended. However, tax exemptions for locally assembled (CKD) EVs will continue until December 31, 2027. MITI emphasized that future perks will strictly reward car companies that build local technology and support Malaysian vendor supply chains (similar to Proton and Perodua’s 733 local suppliers).

How will the public charger fund help condo and PPR apartment residents? +

Lack of home charging access is the biggest barrier for non-landed property residents. The fund raised from the proposed EV levy will be used to deploy accessible public charging hubs in high-density communities, ensuring apartment and PPR dwellers are not left behind in Malaysia's transition to electric mobility.

Tap any question to drop down


Share This Article

Written By

Sofea Najmi

A Bachelor of English Language and Literature graduate with an obsession for the finer details. Sofea uses her background in translation to decode the technicalities of automotive innovation. She is dedicated to delivering impactful, meticulously researched articles that provide a narrative far beyond the spec sheet. LinkedIn: https://bit.ly/3C018vv

Share via

JPJ Running Numbers

KUALA LUMPUR

VRL1175

SELANGOR

BSS7105

JOHOR

JC4074J

PULAU PINANG

PSE6749

PERAK

APK6452

PAHANG

CFH4487

KEDAH

KGH5341

NEGERI SEMBILAN

NEL4293

KOTA KINABALU

SJT5344

KUCHING

QAB4022P

Last updated 15 Aug, 2026

Fuel Price

Petrol

RON 95

RM 3.97

+1.38

RON 97

RM 4.90

+1.75

RON 100

RM 7.20

+2.20

VPR

RM 8.23

+2.00

Diesel

EURO 5 B10

RM 5.12

+2.08

EURO 5 B7

RM 5.32

+2.08

Last updated 30 Apr, 2026

Related News

EV
Not Enough Chargers, Now A New Levy? MP Slams Proposed Fee On EV Buyers

Not Enough Chargers, Now A New Levy? MP Slams Proposed Fee On EV Buyers

Malaysia's proposed EV levy on new car sales has sparked backlash over missing public chargers. Here is why critics say buyers shouldn't pay for the infrastructure shortfall.

07-08-2026

Latest News

EV
Who Can Fix Your Proton e.MAS Like A Pro? PRO-NET & TVETMARA Certify 37 High-Voltage Techs

Who Can Fix Your Proton e.MAS Like A Pro? PRO-NET & TVETMARA Certify 37 High-Voltage Techs

PRO-NET & TVETMARA certify 37 Level 2 high-voltage EV technicians across 25 Proton e.MAS dealerships in M'sia to strengthen EV aftersales support.

12-08-2026
EV
30,000 Cars Sold In 20 Months! How Proton e.MAS Became Malaysia's Undisputed #1 xEV Brand

30,000 Cars Sold In 20 Months! How Proton e.MAS Became Malaysia's Undisputed #1 xEV Brand

Proton e.MAS hits 30,000+ sales in just 20 months! Discover how cheap condo charging, 4,700+ chargers, and 3 best-selling models made it Malaysia's #1 xEV brand.

11-08-2026
EV
"Don't Just Come Here To Sell Cars": MITI Minister Demands EV Brands Help Build Chargers In Malaysia

"Don't Just Come Here To Sell Cars": MITI Minister Demands EV Brands Help Build Chargers In Malaysia

MITI Minister Johari Ghani warns EV brands to build chargers in Malaysia, proposing a new EV sales levy to expand public charging nationwide. Read more!

10-08-2026
EV
Not Enough Chargers, Now A New Levy? MP Slams Proposed Fee On EV Buyers

Not Enough Chargers, Now A New Levy? MP Slams Proposed Fee On EV Buyers

Malaysia's proposed EV levy on new car sales has sparked backlash over missing public chargers. Here is why critics say buyers shouldn't pay for the infrastructure shortfall.

07-08-2026
EV
Is Zeekr’s 8-Year Warranty Worth It? 5 Game-Changing Perks Every Buyer Needs To See

Is Zeekr’s 8-Year Warranty Worth It? 5 Game-Changing Perks Every Buyer Needs To See

Is Zeekr's 8-Year Extended Warranty worth it? Check out official Malaysia prices starting from RM4,999 for Zeekr X, 7X, & 009, plus key deadlines!

05-08-2026
EV
BYD's Perak Mega-Plant On Hold? MITI Says No Official Word From Chinese EV Giant

BYD's Perak Mega-Plant On Hold? MITI Says No Official Word From Chinese EV Giant

MITI reveals BYD has yet to confirm plans for its Tanjung Malim EV plant. Here is what Minister Johari Abdul Ghani announced regarding EV tax breaks.

05-08-2026
EV
After RM3.3B In Forgone Taxes, MITI Signals End Of 'Free Ride' As New EV Levy Studied

After RM3.3B In Forgone Taxes, MITI Signals End Of 'Free Ride' As New EV Levy Studied

Malaysia is considering a new EV sales levy to fund public chargers after RM3.3B in tax cuts failed to spur infrastructure. Here is what MITI announced.

04-08-2026
EV
MITI Won’t Cap EV Charging Rates: What "No Price Control" Means For Malaysian Drivers

MITI Won’t Cap EV Charging Rates: What "No Price Control" Means For Malaysian Drivers

MITI confirms no price caps for public EV charging in Malaysia. Discover how unregulated CPO rates affect EV costs, charger counts, and highway driving!

31-07-2026

Show More

trending_flat
Carz Automedia Malaysia Logo
About Us

CarzAutoMedia: Stay connected to the latest car news! Get instant updates on new releases, industry trends, and automotive innovations. Your go-to source for 24/7 coverage of everything automotive.

© 2026 CariCarz.com. All Rights Reserved.