KUALA LUMPUR, October 11 – The Ministry of Finance (MOF) has confirmed that excise duty exemptions for imported fully assembled (CBU) electric vehicles will end on December 31, 2025, with no further extensions under Budget 2026.
The removal of these exemptions, first introduced in Budget 2022, is expected to boost government revenue, with excise duties projected to increase to RM12.8 billion next year. The MOF stated that the growth is driven by moderate vehicle production, new model introductions, promotional activities, and the end of tax exemptions for imported EVs.
While imported EVs will be subject to excise duties starting 2026, locally assembled (CKD) electric vehicles will continue to enjoy excise and sales tax exemptions until December 31, 2027.
Industry analysts view this move as a push to strengthen Malaysia’s local EV assembly and manufacturing ecosystem, as carmakers like Proton, Perodua, BYD, and Stellantis expand their EV operations across the country.
