Transport Minister Anthony Loke said the Malaysian government will announce a new road tax structure for electric vehicles (EV) next month to encourage the adoption of EVs in the country. At the moment, EVs are exempted from paying for road tax until 31st December 2025 but there’s a concern about how much it costs to renew road tax when the exemption ends.
The Loke said the government is aware of EV owners’ concerns about having to pay high road tax after the exemption period and his ministry had also presented to the National EV Task Force to ensure that the new road tax structure for EVs is more competitive. He added that encouragement is needed for people to start embracing the use of EVs, and the ecosystem needs to be developed, including the installation of EV charging stations.
Previously, Loke said the road tax for EVs is expected to be lower than normal vehicles once the proposed calculation is approved by the government. He acknowledged that consumers are generally concerned about the EV road tax structure as the cost impact is high and could reach RM4,000 to RM5,000 a year under the current structure.
For example, road tax for a Hyundai Kona Electric e-Max, BYD Atto 3 ER and the BYD Dolphin Premium Extended which has a 150kW (201hp) motor would cost RM903 annually under the current structure. Meanwhile, a 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. That’s a huge disparity despite having similar power output while EVs produce zero tailpipe emissions.
Back in July, Loke shared there were 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. The Minister said he wanted the announcement on the new road tax formula to be made this year so that potential EV buyers can go ahead with their EV purchase before the road tax exemptions for EVs end on 31st December 2025.
[ SOURCE ]
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