Transport Minister Anthony Loke revealed that road tax for electric vehicles (EV) is expected to be lower than normal vehicles once the proposed calculation is approved by the government. He said this during the launch of GWM’s 4S service centre in Seremban. He said the proposed road tax calculation is aimed at encouraging more users to migrate to EVs.
At the moment, EVs are exempted from paying road tax until the end of 2025. Under the current formula introduced by the Ministry in 2011, road tax for EVs is calculated based on power output (kW) and the current rate results in a higher road tax compared to internal combustion engine (ICE) cars which are calculated based on engine capacity (cc). This raises concerns among consumers as the current road tax for EVs could cost 10 times more than an equivalently powered ICE car.
For example, a Hyundai Kona Electric e-Max or the BYD Atto 3 which has a 150kW (201hp) motor currently costs RM903 annually for road tax under the current structure while the petrol-powered Hyundai Kona 1.6 N Line with a 1.6-litre turbo engine producing 195hp is only required to pay a road tax of RM90 per year.
Loke said, “My ministry will review that formula and make it lower and more competitive so that people will not hesitate to buy EVs.” He added that the proposal has been forwarded to the special EV task force chaired by Minister of International Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz during a meeting a few days ago.
The Transport Minister said there are currently 10,000 EVs on Malaysian roads and the high road tax for EVs was one of the reasons why Malaysians were still cautious about switching to pure electric. He said EVs have become a global trend and the proposal is meant to support the EV industry in Malaysia.
Loke shared that the road tax will be based on the vehicle’s wattage and it was necessary for potential EV buyers to know how much road tax they would need to pay before making an investment. He added that the announcement on the new road tax formula will be made this year so potential EV buyers can go ahead and buy them before the road tax exemption for EVs ends on 31st December 2025.
In addition, his ministry is also planning to introduce a new EV number plate series exclusively for EV cars starting with EV 1. He said these plates are important for safety to ensure the fire and rescue department can identify if an EV is involved in a fire or accident.
[ SOURCE ]
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