KUALA LUMPUR, Nov 18 (Bernama) -- The government will continue to provide incentives for the development of electric vehicle (EV) charging infrastructure, even though these incentives were not specifically mentioned in Budget 2025.
The Ministry of Investment, Trade and Industry (MITI) said among the incentives are Green Investment Tax Allowance (GITA) programme whereby the Charging Point Operators (CPO) who meet the tax incentive criteria can receive a 100 per cent tax exemption in the form of an Investment Tax Allowance for a period of five years.
This allowance can be used to offset up to 100 per cent of statutory income for each assessment year.
"In addition, incentives in the form of income tax exemptions are also being offered to companies manufacturing EV Charging Equipment in the form of a full income tax exemption on statutory income starting from the assessment year 2023 until the assessment year 2032," said MITI.
The ministry said this in a written reply on the Parliament website today in response to a question from Tan Kok Wai (PH-Cheras) regarding the specific allocations for the development of EV charging infrastructure in the current budget.
MITI also said the government expects the total number of electric-powered vehicles (xEV) on the road to reach at least 400,000 passenger and commercial vehicles by 2030.
As of Sept 30, 2024, the total annual sales for vehicles, including Hybrid, Plug-In Hybrid, Battery Electric Vehicles (BEV), and Fuel Cell Electric Vehicles (FCEV), amounted to 33,319 units. For the whole of 2023, the sales rate was 4.12 per cent, or 35,723 units.
Meanwhile, in supporting the development of the EV Charging Bay (EVCB), the ministry said that Petronas' subsidiary Gentari and Tenaga Nasional Bhd have committed to making investments and had spent around RM76 million up to June 2024.
With the significant financial involvement of both companies, more EVCBs are expected to be built across Malaysia, supported by other CPOs that also provide EV charging services to the public.
"This positive development has helped boost the confidence of EV enthusiasts in purchasing and using these vehicles," according to MITI.
Currently, there are about 30 CPOs operating in the local market.
-- BERNAMA
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