Transport Minister Anthony Loke announced that starting 1 January 2026, road tax rates for zero emission vehicles (ZEV) or electric vehicles (EV) in Malaysia will be based on the power of the electric motor.
The new rates will be 85% lower than the current rates, which was not enforced because EV owners don’t have to pay for a road tax until the end of 2025, to encourage the adoption of ZEVs and to attract ZEV manufacturers to establish production hubs in Malaysia, according to Bernama.
The fee rates will be reviewed every five years to ensure they meet transition goals and assess their impact on government revenue.
The new road tax rates will increase with the power of the electric motor, reflecting higher purchase prices, larger size, segment, and weight of the vehicle. These rates apply specifically to battery electric vehicles (PBEV) and fuel cell electric vehicles (FCEV).
The motor power range is divided into blocks of 100,000 watts. For example, block 1 covers vehicles with motor power from 1 to 100,000 watts, while block 2 is between 100,001 watts and 210,000 watts.
The minimum road tax rate for block 1 is RM20 while the maximum rate is RM70. Block 3 covers higher power vehicles, with rates ranging from RM305 to RM575.
Loke provided specific examples: the BYD Dolphin Premium Standard Range vehicle (130 kW) will see a road tax reduction from RM624 to RM120, and the Tesla Model Y (220 kW) will drop from RM2,583 to RM305.
Special license plate frames for ZEVs
Loke also announced that the government plans to introduce special license plate frames for ZEVs to distinguish them from internal combustion engine vehicles (ICEVs).
These special frames will be issued and installed by ZEV manufacturers before the vehicles are delivered to buyers.
The Transport Minister said he will make more announcements regarding this later without specifying when.
