Budget 2025: Govt Urges M’sians to Transition to EVs, Perodua Plans to Release EVs Under RM100k

The incentive for using CKD electric motorcycles will still be available, offering up to RM2,400, with a budget of RM10 million.

To help promote a circular economy, the government plans to:

• Keep the tax deductions for donations or sponsorships for Smart AI-Driven Reverse Vending Machines until the end of 2026.
• Expand the tax breaks for buying electric vehicle chargers to also include food waste composters for home use until the assessment year 2027.

By 2026, the government will introduce a Carbon Tax for the iron and steel industries, as well as the energy sector in Malaysia. This tax is meant to encourage the use of low-carbon technologies. The money collected from this tax will be used to support research and green technology projects.