Malaysia is taking significant steps to promote electric vehicles (EVs) as part of its broader National Energy Transition Roadmap (NETR). The goal is to see EVs make up 15 per cent of all new vehicle sales by 2030, with a dramatic rise to 80 per cent by 2050.
To support this shift, the government has extended the import and excise duty exemptions for fully imported EVs until the end of 2025. EV owners will also continue to be exempt from road tax until the end of next year.
Tax Incentives Offered
From 2026, a new tax structure will apply, significantly reducing tax rates for EVs based on their power output. According to Transport Minister Anthony Loke, these rates will be 85 per cent lower than those for petrol-powered vehicles, making EVs a more attractive option for consumers.
The government is also investing in EV charging infrastructure. Individuals can receive up to RM2,500 (around $855) in annual income tax relief for installing or renting EV charging equipment or paying subscription fees, available through 2027. This initiative aims to make EV ownership more convenient by improving access to charging facilities.
For those adopting electric motorcycles, Malaysia is offering a tax return of up to RM 2,400 ($857), though this incentive is only available for the 2024 assessment year and is restricted to individuals earning less than RM 120,000 (around $41,000) annually.
Businesses investing in the assembly or manufacturing of energy-efficient vehicles (EEVs), including hybrids and electric vehicles, can benefit from a substantial income tax exemption of 70 per cent or 100 per cent on statutory income for five or ten years, respectively.
Additionally, companies involved in green technology services, such as installing or maintaining EV charging infrastructure, can enjoy a 70 per cent tax exemption for three years from the start of their operations.
These measures show Malaysia’s commitment to driving the transition to greener transportation and supporting the growth of sustainable technology. By creating a supportive environment for EV adoption and infrastructure development, Malaysia is positioning itself as a leader in the global move towards cleaner, more sustainable transport solutions.
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