Electric vehicles are a growing part of Malaysian roads, and many buyers and businesses were watching Budget 2027 for signs of what comes next. The headline for green investment is positive. For EV buyers, the picture is more mixed.
The main green measure: GITA extended to 2030
The Prime Minister announced that tax incentives for green and sustainable technology will be enhanced and extended until 31 December 2030. This covers the Green Investment Tax Allowance (GITA) and the Green Technology Financing Scheme. Companies that undertake green technology projects, build EV charging stations, or buy qualifying green technology assets for their own use can claim allowances of up to 100%.
One point for charge point operators: some commentary notes that the proposed amendments for 2027 to 2030 narrow the allowance for EV charging operators compared with before. The details are in the Budget 2027 tax measures, so operators should check the final terms with their advisers.
What has not changed for EV buyers
- Imported EVs (CBU) no longer enjoy the exemptions that ended on 31 December 2025, and Budget 2027 did not bring them back.
- Locally assembled EVs (CKD) continue to enjoy excise duty and sales tax exemptions, and import duty exemptions on components, until 31 December 2027. We found no report that this was extended in Budget 2027, so manufacturers and buyers should plan around the 2027 date until the government says otherwise.
- Direct buyer incentives. No new purchase rebates or subsidies for EV buyers were announced, although the government has said it is studying targeted measures.
An individual relief still in place
Individuals can claim tax relief of up to RM2,500 for the installation, rental or subscription of EV charging facilities. It is claimable through the 2027 year of assessment. The industry has asked for it to be extended, but we found no report of an extension in Budget 2027.
What this means for you
If you run a business, a green investment, such as solar equipment, energy-efficient machinery or EV chargers for your own use, may qualify for a generous allowance until 2030. Planning the timing and structure of these investments can make a real difference to your tax position.
If you plan to buy an EV, the tax advantage still sits mainly with locally assembled models until the end of 2027. If you install a home charger, keep the receipts to claim the individual relief.
What to do now
- Review planned green investments against GITA eligibility before you commit to spending.
- Check supplier and asset listings. Qualifying assets generally need to meet the approved criteria, so confirm eligibility first.
- Keep EV charging receipts if you claim the individual relief.
- Watch for further guidance. Official details on EV policy beyond 2027 may still be announced.
Speak to AdrianYeo Tax
Green incentives can be valuable, but eligibility rules are strict. Our chartered accountants can help you plan investments and claims with confidence.
This article is for general information only and does not constitute tax advice. Measures are based on Budget 2027 announcements and may change when the legislation is finalised. Please consult a tax professional about your specific circumstances.
