MAA Proposes Tax Rebates for xEV Buyers and Vehicle Scrapping in Budget 2027
MAA Proposes Tax Rebates for xEV Buyers and Vehicle Scrapping in Budget 2027
The Malaysian Automotive Association (MAA) has submitted a strategic proposal ahead of the upcoming Budget 2027, aiming to accelerate the nation's transition toward cleaner mobility. The association is advocating for targeted personal income tax rebates to incentivize both the purchase of electrified vehicles and the voluntary decommissioning of older cars.
Central to the proposal is a request for personal income tax rebates ranging from RM7,000 to RM10,000 for consumers purchasing electrified vehicles (xEVs). This move is intended to lower the cost of ownership for hybrid, plug-in hybrid, and battery electric models, making sustainable transport more accessible to the general public. Furthermore, the MAA is pushing for a RM5,000 incentive for the voluntary scrapping of aging vehicles, a measure designed to encourage the replacement of older, less efficient models with modern alternatives.
These recommendations come at a critical time as the government prepares to table Budget 2027 on October 9. By linking tax relief to electrification and vehicle renewal, the MAA hopes to align the automotive industry's growth with Malaysia's broader decarbonization and sustainability goals, effectively modernizing the national car parc through meaningful financial incentives.
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