PETALING JAYA: Malaysia's renewable energy policies got a further boost in Budget 2020 with the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) receiving an extension to year 2023.
Finance Minister Lim Guan Eng announced the green tax measures to help the nation achieve its target of 20% renewable energy mix by 2025 when tabling the Budget 2020 at Parliament on Friday (Oct 11).
"In addition, tax incentives will also be introduced to companies implementing solar leasing activities with income tax exemption of 70% for up to 10 years," he said.
Lim added the government will also accelerate the implementation of Energy Performance Contracts (EPC) for Government buildings, focusing on hospitals and educational institutions.
He said through the EPC, the initial capital investment in energy saving equipment for government buildings will be repaid through cost savings achieved.