Business and Finance

Electric cars tax waivers on offer

Electric cars tax waivers on offer

By Wezzie Gausi:

The government is committed to introducing a tax waiver on electric vehicles (EV), the Ministry of Energy has said.

This was said during the launch of the e-vehicle by the United Nations Development Programme (UNDP) on Monday in Lilongwe.

Introduction of the tax waiver is aimed at contributing towards climate conservation and promoting the use of clean energy.

Minister of Energy Ibrahim Matola said electric vehicles are environment-friendly as well as cost-effective.

He said the government is committed to implementing strategies such as e-mobility to decarbonise the environment.

“We need to have many EVs in the country but with the cost of the vehicles, we thought it wise to work on our tax waivers. These EVs require less maintenance and have lower operating costs as compared to traditional vehicles powered by fossil fuels.

“This initiative will not only benefit the environment but also contribute to the economic development of Malawi by saving costs and creating job opportunities in the renewable energy sector,” Matola said.

UNDP Resident Representative Fenella Frost said UNDP is committed to supporting initiatives that promote access to affordable and clean energy.

She said the project is an example of the many ways in which UNDP is working to support the transition to a more sustainable energy future.

“In Malawi, this can be seen through our projects such as the Access to Clean and Renewable Energy project which has spearheaded the expansion of electricity generation capacity through scaling-up of clean energy mini-grids targeting productive users in rural areas and strengthened regulatory and institutional capacity for improved energy sector coordination and research and development enhancement,” Frost said.

Meanwhile; UNDP has said electric vehicle innovation and technology helps grow the economy as entrepreneurs seek alternative sources of energy which are reliable such as solar or other renewable sources of energy.