Budget 2027: Government to reduce tax incentive for EV charging station operators
- ID
- 34435
- Status
- summarized
- Published
- 12 Oct 2026, 3:54 PM
- Fetched
- 12 Oct 2026, 4:08 PM
- Provider
- SoyaCincau
- Category
- malaysia-tech
- Original URL
- https://soyacincau.com/2026/10/12/budget-2027-gov-reduce-tax-incentive-ev-charging-station-operators-gita/
- Source URL
- https://soyacincau.com/feed/
Summary
- Score
- 6.0
- Created
- 12 Oct 2026, 4:08 PM
- Tags
- Audience
- saas_startup_foundersdevelopers
What happened
Malaysia's Budget 2027 extends the Green Investment Tax Allowance (GITA) for EV charge point operators (CPOs) to 31 December 2030, but cuts the allowance rate from 100% to 60% and the statutory income set-off cap from 100% to 70%, per Appendix 25 of the Budget 2027 Tax Measures. The current scheme, revised under Budget 2024 and running to 31 December 2026, let CPOs offset up to 100% of statutory income over five years. SoyaCincau's worked example: a CPO with RM1 million statutory income currently pays RM0 corporate tax; under the 2027 rules GITA covers only RM700,000, leaving RM300,000 taxable.
Why it matters
If you are modelling a Malaysian EV charging business case, the tax shield assumption changes: RM300,000 of tax appears on RM1 million of statutory income where there was none before. Anyone planning a CPO project commissioned in the 2027-2030 window should re-run the model at 60% allowance / 70% set-off rather than the 100% figure in the Budget speech headline, and read Appendix 25 rather than the announcement. It also contradicts the July statement by Deputy Minister of Investment, Trade and Industry Liew Chin Tong that the government was discussing additional incentives for CPOs.
Discussion angle
The speech said 100% Investment Tax Allowance to 2030; Appendix 25 says 60% rate and 70% set-off. How do you decide what to trust when budgeting off a national budget announcement, and does this slower tax shield change whether you'd build or fund charging infrastructure in Malaysia at all?