Government Set To Unveil Revised Road Tax Structure For EVs By Year End

The current EV road tax is deemed as too expensive and discourages people from buying one.
(credit: Michael Förtsch on Unsplash)

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Previously, we reported that the government has set a new target of 1.5 million electric vehicles (EVs) in the country by 2040 and they are trying to establish approximately 4,000 EV charging points this year to accommodate to growing number of EVs on the road and to encourage more people to drive one. Another thing the government is trying to do to encourage the use of EVs is reduce the cost of road tax.

New Straits Times reports that the revised structure for road tax related to electric vehicles (EV) will be announced by the government before the end of this year, according to Transport Minister Anthony Loke Siew Fook.

Loke has provided a timeline to ministry officials for the development of the new road tax structure, which will replace the current one set to expire in 2025.

The revised road tax structure takes into account feedback received from EV companies and aims to address concerns raised by consumers regarding road tax for EVs after 2025. Loke emphasized that following the current formula for calculating road tax for EVs could result in significantly higher costs, potentially discouraging more people from transitioning to EV cars. The road tax can costs as much as RM4,000 to RM5,000 he added.

To encourage the adoption of EVs, Loke plans to discuss the road tax structure and other incentives with the Finance Ministry for Malaysia’s 2024 Budget. He believes that providing clearer guidelines on road tax for EVs and offering additional incentives can further motivate the public to embrace EV usage.

As part of the 2022 Budget Tabling, road tax exemptions were introduced for battery and fuel cell (hydrogen) EVs, effective from 1 January of that year until 31 December 2025. However, hybrid vehicles were not included in the exemption.

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