EVs are duty-free now. Will that still be the case come January 1, 2026? According to Sime Beyond Auto, the top BYD dealership group in Malaysia, no.
Yesterday, the company’s Trec KL branch posted up a graphic on Instagram saying ‘EV tax holiday ends in 96 days’ while urging punters to purchase a BYD in the remaining time. “With the EV tax holiday coming to a close, now’s the perfect time to drive home with a new BYD now,” it said.
Currently, CBU imported EVs are exempted from import duty and excise duty until December 31, 2025. This was announced in Budget 2023, an extension from the previous deadline of December 31, 2024, which itself was extended from the original expiry date of December 31, 2023.
Meanwhile, CKD locally-assembled EVs are exempt from excise duty (no import duties applicable, of course) and sales tax until December 31, 2027, which is two years more than the original deadline of December 31, 2025 announced during Budget 2022.
For now, there has been no indication from the government as to whether another extension will be given, but Budget 2026 will happen this month – we’ll see if there’s a last minute reprieve for OEMs peddling CBU EVs. As you’d imagine, the industry wants another extension.
“As far as EV subsidies are concerned, we would like to have the government continue (them). We feel that there is still not enough momentum for EVs and the market needs to have a continuation (of incentives) to ensure that there will be long-term effect,” MAA president Mohd Shamsor Mohd Zain said in July.
“It will also give an opportunity for other OEMs to plan production and establish a volume base. Right now, it’s only about 4% (market share) as far as EVs are concerned while HEVs are at about 4.6%, so it is still low in terms of the government’s aspiration of 15% (of total industry volume) by 2030.
“As far as the industry is concerned, we would like to see continued implementation (of incentives), and that way we will have more participation from the OEMs. Hopefully we will see new products, new models in the market,” he added.
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Those that already bought EV thought they strike a lottery. Now, with lower petrol price and soon, the removal of EV tax holiday, there will be lesser reason to buy EV. Less benefits to compensate the hassles.
Can say whatever you want but don’t forget that there are many people that still in love to drive EV. Oh yeah, anyways, are you also going to worried about price hike for all brands soon from next year onwards where you need to concern more?
Say all you want. There are even more people still in love with ICE car, much more more than EV. We will start worry when there’s a firm announcement like this no tax holiday for EV by this year end.
Yeah that’s your assumption, wait till it comes whether you like it or not, even yes many people also drive petrol but there are more people who love to drive EV where you don’t know. Too early to celebrate yet.
Let me celebrate now. You talk when the day EV sales figure exceed ICE comes.
buying an EV tax free is literally “striking the lottery” is it not ? why would u buy a ICE car , do you like to pay extra tax ?
If you think you want tax free for ICE cars, but the problem is that did you know why there are many cars nowadays everywhere? Think again before you comment. Besides, even ICE also not even safer and also higher fuel consumption and will also harm health benefits for people too than EV
I didnt think I strike a lottery just because EV is cheaper. I just think I get to experience it first and I can switch between petrol or EV whenever I want.
What about the cost for charging which will eventually increase. Then too late to revert to ICE engine cars.
If you own EV and petrol, you will know why EV is more worth than petrol cars especially long term run and maintenance cost
So with RM1.99 petrol price, still can save home from charging at home bro
And with looking at roadtax, maintenance cost, safety, reliability and fuel consumption, did you know why EV get benefits more than petrol, mr petrol fanboy
Bro, if you have an EV, you will understand better, only rely on road tax and fuel price? add on the maintenance and I’m sure you will feel jealous
Wait till official announcement for Budget 2026
Lets wait for budget but the shows over for those who bought RM100k EV cars and since petrol are now cheaper in general please go and buy another Petrol car while government mulling another Electricity hike tariff for heavy consumption.
Can’t wait to see how many booking for Emas 5 coming.
Those who can afford more than RM100k vehicle are usually charging Rm1 for 1kw battery. We dont really care about that rm0.5 sen x 300 litres lol.
Should give EV extension as part of environment friendly
We’re famous for last minute U-Turn, Turn Right then Turn Left, No Entry then got entry. So better wait till the official budget announcement this month.
When the duty exemptions for CBU EVs are withdrawn the price of CBU EVs will more than double. Don’t believe me? OK let’s calculate.
Let’s say a CBU EV is being sold for z ringgit now including sales tax. The nett price of the car with profit margin is z/1.1
With 30% import duty, 70% excise duty and 10% sales tax the new car with the same profit margin is:
(z/1.1)x1.3×1.7×1.1 = 2.21z
So the EV will be 2.2 times more expensive. The cheapest EV at RM100K becomes RM220K. A midrange 150K EV becomes RM330K which is luxury car territory.
This means that the market for CBU EVs will disappear overnight. If they can’t CKD the companies may disappear as well leaving orphan cars which cannot be maintained.
Did you know Malaysia markup the original price to be sold in here, even with that 2.2 times, they can just drop the car price close to its original price. Rm78k car in China being sold at RM170k in Malaysia.
Ev haters…..incomin in 3,2 and 1
That’s what EV haters are looking for, very cocky but in the end, will be U-turn
But in the end, sure U turn mah
But Proton with their Emas 7 and Emas 5 needs protection so there will be no U-turn.
but yet many people want to try other EV brands too, as part of the future but only EV haters can’t accept
Wait for announcement on 10th Oct la…
What could be the new price of BYD Seal, M6, atto 3, dolphin, sealion after adding import tax etc.
As any business, definitely you need to play on FOMO and scarcity. One end ask customers to buy before runs out, other end complain to government showing the X billions spent on infrastructure
Suggest that EV should be extended while should tax all brands as part of OMV CKD (except CKD EV) as part of reducing of heavy traffic. After all, EV is part of the future and part of environment friendly.
Gov should extend. All this to protect stupid ckd conjobs
Removing the duty exemption will see the sales of EVs nosedive. The more drivers switch to EVs the less burden for the government as EVs don’t use any subsidized petrol.
will byd car battery or ecu locked from HQ due to not paying usage subscription or checking outside normal workshop?
future EV car, petrol price go down soon! next year!
But problem is that all brands will have to go up, whether like it or not, especially nowadays got traffic jam everywhere. Even ICE cars won’t get benefit for long term for many reasons especially maintainance cost for ICE cars is also not cheaper than EV.
Wrong move, should tax on ICE cars, as seeing too many cars on the road, also fuel consumption also very high and safety for ICE also not good than EV. In long term, if petrol fans think ICE cars still benefit than EV, but in reality, petrol fans didn’t realize on why ICE won’t get benefits for long term, especially maintenance cost for ICE is expensive than EV. Think again
Ok with the policy. CKD is better for Msian market
If you don’t understand EV and are against it, your car knowledge is weak and needs major improvement.