The Malaysian Automotive Association (MAA) has proposed a RM7,000–RM10,000 personal income tax rebate for buyers of electrified vehicles under Budget 2027.
The measure is intended to lower the effective cost of ownership for middle-income buyers considering electrified vehicles. It would apply through the income tax system rather than as an immediate discount on the vehicle’s purchase price.
MAA uses the xEV category to cover hybrids, plug-in hybrids, battery-electric vehicles and fuel-cell vehicles.
The proposal had been submitted to the Ministry of Finance as part of the association’s Budget 2027 recommendations, MAA president Mohd Shamsor Mohd Zain said in an interview with Bernama.
The association believes stronger retail demand could support wider local assembly of electrified models and encourage further investment by vehicle manufacturers.
It is also seeking an extension of the existing RM2,500 individual tax relief for EV charging-related expenditure beyond the 2027 year of assessment. Current relief covers eligible spending such as the purchase, installation, rental and subscription costs of charging facilities.
A separate MAA proposal would give owners a RM5,000 personal income tax rebate for voluntarily scrapping vehicles at least 20 years old and replacing them with new locally assembled models.
MAA has also called for continued green investment incentives for charging-point operators and measures to help Malaysian suppliers build capability in electrified-vehicle components.
The proposals come as the Finance Ministry consults automotive industry stakeholders ahead of Budget 2027, with electrification, domestic value creation and technology investment among the issues under discussion.
