The government is reportedly fine-tuning steps to increase the number of electric cars (EVs), including hybrids, for its use as official vehicles. According to deputy minister of international trade and industry (MITI), Liew Chin Tong, the matter was being being refined by the ministry of finance, Berita Harian reports.
This is in line with the announcement made last August by the previous government, in which it was stated that the government would begin making the switch to EVs for its vehicle fleet beginning from 2023.
He added that MITI had also made some suggestions to improve EV adoption and accelerate the development of electrification in the country. “”MITI has suggested that individual income tax relief for subscription to charging facilities or the installation of EV chargers be included in the 2023 Budget,” he said in the Dewan Rakyat.
He added that the strategic framework for the development and planning of EV chargers in the country is also being developed. Liew was replying to a question from Jimmy Puah Wee Tse (PH-Tebrau), who asked about MITI’s policy to encourage the use of EVs as well as the status of electrification efforts. “Until now, the existing total of EV and hybrid units stands at 21,659 units and 902 charging points,” he said.
At present, fully-imported (CBU) EVs are exempt from import and excise duties until December 31, 2024, while locally-assembled (CKD) EVs are exempt from excise duty and sales tax until December 31, 2025. Additionally, the components used to build them are exempt from import duty, and all EVs are also exempted from road tax until the latter date.
It was mentioned last month that more EV incentives were set to be included in the revised Budget 2023, which will be tabled in Parliament later this week. This was reiterated by minister of international trade and industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz last week. “More EV-related incentives are expected to be announced in the revised Budget 2023, which will be presented on February 24 in the Dewan Rakyat,” he said.