Transport Minister Anthony Loke said the government will be announcing a more competitive road tax structure or Motor Vehicle License (LKM) for electric vehicles (EV) next month in an effort to encourage its use.
Loke was quoted by Bernama saying that the road tax structure will only apply after 2025, which is after the end of the road tax exemption period for EV vehicles.
He said the government is aware of the concerns of EV vehicle owners who are worried about higher road tax costs after the exemption period and the ministry has presented a more competitive road tax structure to the EV Special Task Force.
The encouragement is needed so that people start accepting the use of EVs and the ecosystem needs to be implemented and developed including charging systems and so on and indeed that is one of the things we are taking action on as a comprehensive government approach.Transport Minister Anthony Loke
The Ministry of Transport in February last year through the Road Transport Department offered the incentive of full LKM Fee Exemption for EV vehicles from 1 Jan 2022 to 31 Dec 2025.
The exemption is given to EV vehicles that use batteries or fuel cells and does not apply to hybrid vehicles that still have a gasoline or diesel internal combustion engine.