The Malaysian Insight

TO reduce air pollution and carbon emissions, the government is proposing full exemption on import duty, excise duty, sales tax and road tax for electric vehicles (EVs), Finance Minister Tengku Zafrul Tengku Abdul Aziz said when tabling Budget 2022 today.

He said the government supports the development of the local EV industry and sees the potential of EVs as an effort to minimise vehicle smoke pollution.

“Road tax exemption of up to 100% is also given to these vehicles.

“Individual income tax relief of up to RM2,500 is also given on the cost of purchase and installation, rental and hire purchase of facilities, as well as payment of EV charging facility subscription fees,” he said.

The move is in line with Prime Minister Ismail Sabri Yaakob’s agenda to make Malaysia a carbon-neutral country as early as 2050.

Another measure proposed in Budget 2022 is the voluntary carbon market initiative under Bursa Malaysia.

“This initiative will act as a voluntary platform for carbon credit trading between green asset owners and any entity towards a shift in low-carbon practices,” Tengku Zafrul said.

To help SMEs improve sustainable and low carbon practices such as increasing the use of sustainable raw materials and renewable energy, Bank Negara Malaysia will also provide a low carbon transition facility with a fund value of RM1 billion in line with equivalent funds from participating financial institutions, he added. – October 29, 2021.