Fully imported electric vehicles arriving in Malaysia before December 28 are eligible for duty and import duty exemptions: MAA – paultan.org

Fully Imported (CBU) electric vehicles brought into Malaysia before December 28 this year will still be eligible for import and excise duty exemptions even though tax exemptions will end and prices will increase from January 1, 2026, the Malaysian Automotive Association (MAA) has said. Main Bulletin.

The delivery period for CBU EVs could be extended as the main requirement for tax exemption is the time of entry of the vehicles into the country, and not the delivery schedule, said Mohd Shamsor Mohd Zain, president of the Malaysian Automotive Association (MAA).

“The delivery time has nothing to do with the tax exemption. What matters is that this year’s stock must have entered the country and been declared to customs before December 28, 2025,” Mohd Shamsor said in an interview with Main Bulletin.

The current exemption from import duties and excise duties for fully imported electric vehicles was first announced in October 2021 during the tabling of Budget 2022 and has been extended twice.

This was originally scheduled to end on December 31, 2023, before being extended to December 31, 2024 during the first tabling of Budget 2023, and subsequently during Finance Minister and Prime Minister Datuk Seri Anwar Ibrahim’s Budget 2023 speech in February 2023.

The tax exemptions for fully imported electric vehicles, which have not been extended until the end of this year, led to a sharp increase in EV sales in November and December as consumers and distributors secured their purchases ahead of the deadline, Mohd Shamsor said.

According to the MAA, the total industrial volume (TIV) for the automotive industry as a whole is expected to exceed 800,000 units this year. This growth was supported by more aggressive promotional activities, especially in the fourth quarter of the year, according to Mohd Shamsor.

“We hear that many players from other brands are interested in producing electric vehicles locally. This will accelerate technological progress in the domestic market,” he said. Meanwhile, the Malaysian government is expected to increase federal revenue collection by 2.3% to RM12.8 billion next year if fiscal incentives for electric vehicles come to an end.

For 2024, the sector reached a new record of 816,747 units, or 2.1% more than the previous record of 799,821 units in 2023. This year, volume leader Perodua is expected to account for 44% to 46% of the total industrial volume which is expected to be between 780,000 and 805,000 units.

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