DISCUSSIONS ONGOING ON ALTERNATIVE INCENTIVES FOR EV ADOPTION -- TENGKU ZAFRUL

By Harizah Hanim Mohamed

KUALA LUMPUR, Oct 16 (Bernama) -- Discussions are underway on alternative initiatives to encourage electric vehicle (EV) adoption following the removal of excise duty exemptions on completely built-up (CBU) EVs starting in 2026, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said that while there are ongoing discussions between the Ministry of Investment, Trade and Industry (MITI) and the Ministry of Finance (MoF), no alternative incentives have been suggested yet.

“There are ongoing discussions with the MoF, but no proposals have been made yet,” he told Bernama on the sidelines of the 10th Meeting of the ASEAN-Organisation for Economic Co-operation and Development (OECD) Good Regulatory Practice (GRP) Network.

When asked about excise duty collection, which is expected to increase by 2.3 per cent to RM12.79 billion in 2026 from RM12.51 billion this year, Tengku Zafrul said the details should be referred to the MoF.

The Finance Ministry in its Fiscal Outlook and Federal Government Revenue Estimates report noted that the expiration of tax holiday for CBU EVs would improve the collection of excise duties.

The ministry attributed the figure to moderate motor vehicle production, the introduction of new vehicle models and intensified promotional activities, as well as the removal of excise duty exemptions on CBU EVs.

Malaysia has set ambitious targets for EV adoption, aiming for 20 per cent of new vehicle sales to be electrified by 2030, 50 per cent by 2040, and 80 per cent by 2050.

-- BERNAMA