In Malaysia the EV incentives are the best among all the nations shared below
We say this because the current Malaysian government gave a full import duty exemption for new and also used electric cars imported into the country.
Please note that Malaysia has a very HIGH import duty on imported and also local assembled vehicles and NOW the government provides ZERO import duty on electric cars which means a HUGE savings in purchase price for Malaysian EV buyers. Plus there is preferred road tax rates for electric vehicles in Malaysia.
Respect this and appreciate it, Malaysians who can afford shiny new electric cars.
USA – Tax Bonus
When purchasing electric cars, all federal taxes that depend on fuel consumption are waived. Buyers of electric cars are also entitled to a federal tax credit of up to 7,500 US dollars. However, as soon as a manufacturer’s total sales of electric cars have reached 200,000 units, the subsidy for models from this manufacturer will expire. So far, only two companies have reached this limit.
NORWAY – Tax Bonus
Norway has been a forerunner in the introduction of electric cars for several years, which is also reflected in its leading position in renewable energy feeding its energy grid, making it a real electric car halo market. Almost every third vehicle sold in Norway in 2018 was electric. In the first quarter of 2019, almost every second vehicle registered was an electric car.
There are good reasons for this: In this forward-looking market, pure electric and fuel cell vehicles are not subject to import tax. In addition, electric cars are not subject to the 25 percent VAT on motor vehicles, which is otherwise added to the value of the vehicle after customs and import taxes.
Thanks to this tax advantage, Norway is one of the few markets in the world where the price of an electric car is at the same level as that of a similarly sized vehicle with a combustion engine. Other advantages include limited use of bus lanes in selected areas and savings on ferry crossings, tolls and parking fees.
GERMANY – 4,000 Euros Purchase Incentive
Since the summer of 2016, the German government makes an environmental contribution of 2,000 Euros to the purchase of a pure electric car, combined with the same amount by the manufacturer, corresponding to a total amount of 4,000 Euros. This bonus is limited to electric cars up to a value of 60,000 Euros. According to Transport Minister Andreas Scheuer (CSU), this state subsidy should be further increased.
Electric cars are also exempt from vehicle tax for up to ten years. Since January of this year, users of electric company cars, which are also used privately, have been paying a reduced monthly amount of 0.5 percent of the so-called benefit-in-kind income tax on the purchase price of their vehicle. For other vehicles it is one percent.
A special tax bonus is also available dependent on the size of the vehicle’s battery. The list price value of the vehicle is reduced by 200 Euros per kilowatt-hour battery capacity up to a maximum of 10,000 Euros in 2019 and thus reducing the calculated list price of the vehicle and therefore the amount charged through income tax. This amount is reduced by 50 Euros each year and is currently planned to run up to 2022. Extensions to 2025 are however being considered.
FRANCE – up to 8,500 Euros when buying an e-car
France has a bonus-malus system (incentive/tax) under which vehicles with the highest CO2 emissions have to pay a surcharge which is more than 10,000 Euros for the vehicles with the highest emissions. For electric vehicles, this in turn provides an incentive to buy: an ecobonus of 6,000 Euros can be claimed for the purchase of an electric car, but may not exceed 27 percent of the vehicle value.
In addition, there is a scrappage bonus for older petrol or diesel models of up to 2,500 Euros. Combined, a total of 8,500 Euros of ecological bonuses are available for private consumers of electric cars.
NETHERLANDS – Tax bonus
In the Netherlands there are no registration taxes for pure electric cars. Registration tax is based on the CO2 emissions of a vehicle. By way of comparison, a petrol-powered vehicle with CO2 emissions of 100g/km is subject to a registration tax of 2,355 Euros for this tax alone. In addition, electric and hybrid vehicles are exempt from vehicle tax until 2020.
For company car drivers who also use the vehicles privately, only 4 percent of the sales value (maximum 50,000 Euros) of an electric car is regarded as part of the driver’s income tax. The rate for conventional vehicles is 22 percent.
UNITED KINGDOM – GBP3,500 Purchase Incentive
An electric car in London can add significant savings due to qualifying for no tolls to enter the city⁴
Plug-in vehicle grants of up to GBP3,500 are available to all consumers buying a pure electric vehicle in the UK.
Plug-in hybrid vehicles are no longer eligible for a government purchase incentive but can claim up to GBP500 off the price of a home charging device. Private use of company cars is also subject to a lower benefit-in-kind tax rate of 13 per cent in the year 2018/19 which is around half the rate as an equivalent petrol or diesel model, although planned increases are due over the years ahead.
One further advantage, for motorists driving into London, up until December 2025, zero emission vehicles can enter the London Congestion Zone without having to pay the GBP11.50 daily price while also avoiding the additional GBP12.50 daily charge for entering the recently introduced Ultra Low Emission Zone (ULEZ).
SWEDEN – 60,000 Swedish Krona purchase incentive
Since last year, Sweden introduced a Bonus-Malus system for incentivising the purchase of electric cars, light-trucks and buses. These pure electric vehicles receive a purchase incentive bonus of 60,000 Swedish Krona (5,700 Euros).
The climate bonus must not exceed 25 percent of the value of the vehicle however. For companies buying a climate bonus vehicle, the bonus must not exceed 35 percent of the difference of the new vehicle price and the new vehicle price of a comparable petrol or diesel vehicle.
The bonus is paid directly to the owner six months after the vehicle is registered, preventing the vehicle being sold within that time period. For every gram CO2 above zero and up to 60g/km the bonus is reduced by 833 Swedish Krona per g/km.
ITALY – 4,000 Euros purchase incentive, 2,000 Euros state scrappage bonus
Italy is the youngest market offering a significant incentive to buy electric cars. A new eco-bonus was introduced in March 2019 and runs until the end of 2021. A maximum government bonus of 6,000 Euros is on offer, combining a 2,000 Euros trade-in of a Euro 1 to Euro 4 vehicle, and/or 4,000 Euros – if no vehicle is traded-in – for vehicles emitting less than 20g/km of CO2.
ROMANIA – 10,000 Euros purchase incentive
Surprising perhaps, Romania is one of the leading markets when it comes to direct government subsidies for electric cars. With a government purchase incentive of 10,000 Euros on the table with an additional 1,500 Euros for scrapping a vehicle older than eight years, Romania is leading the way.
This resulted in just over 600 pure electric cars being purchased last year corresponding to a 222 per cent increase over the previous year. 213 pure electric cars were registered during this year’s first quarter according to ACEA data.
