Anthony Loke Announces New Road Tax Structure for EVs to be Revealed by End of 2023

Transport Minister Anthony Loke has announced that the current road tax exemption for electric vehicles (EVs) will end on 31st December 2025. Loke’s ministry is working on a new road tax structure specifically for EVs. This new structure is necessary because the previous government had only granted road tax exemption for EVs until 2025.

Transport Minister Anthony Loke stated that the new road tax structure for electric vehicles (EVs) is expected to be revealed by the end of this year. The new structure will be a significant part of the Ministry’s Budget 2024 proposal. Anthony expressed awareness of consumers’ concerns about the current EV road tax structure, which can result in high costs of around RM4,000 to RM5,000 per year. He has instructed officers at the Ministry of Transport (MoT) to study this matter based on feedback from consumers and EV companies. The goal is to encourage more people to switch to EVs through an improved road tax structure.

Anthony Loke emphasized the importance of clear policies on electric vehicle (EV) usage to support the transition to sustainable transportation. Malaysia aims to achieve 15% of the total industry volume (TIV) for EVs and hybrid vehicles by 2030. The country also plans to have 10,000 EV charging points by 2025. Anthony mentioned the possibility of leveraging Sweden’s expertise in EV adoption, charging infrastructure, and smart traffic systems to accelerate Malaysia’s transition to eMobility.

The current road tax structure for electric vehicles (EVs) in Malaysia is based on the power output of the electric motors, unlike the engine capacity used for internal combustion engine vehicles. This difference in calculation creates a significant disparity in road tax rates between EVs and petrol-powered vehicles. For instance, a Hyundai Kona Electric e-Max or BYD Atto 3 with a 150kW motor would have an annual road tax of RM903, while a petrol-powered Hyundai Kona 1.6 N Line with a 1.6-liter turbo engine producing 195hp only pays RM90 in road tax. Despite having similar power outputs, the road tax difference between EVs and petrol-powered vehicles can be as much as tenfold.

Under the current road tax structure in Malaysia, owners of the Volvo XC40 or C40 with a 300kW power output have to pay RM4,503 annually, while a Mercedes-Benz S560e plug-in hybrid with a larger engine costs RM2,120 in road tax. Fully imported electric vehicles (EVs) are currently exempted from import duty and excise duty until 31st December 2025. Locally assembled EVs are also exempted from import duty on components, as well as excise duty and sales tax until 31st December 2027.



Related articles

Canon Seeks Partnership with Smartphone Manufacturer: Expanding Possibilities in Imaging Technology

"Canon Eyes Smartphone Partnerships: Co-Designing Cameras for Enhanced Photography"...

Neeva, Potential Google Competitor, Shutting Down Search Engine Operations

Neeva, Potential Google Competitor, Shuts Down Search Engine Operations"...

WWDC 2023: Unveiling Apple’s Innovations and Insights for Developers

Apple's Worldwide Developers Conference (WWDC) is an important event...

Maybank Services Temporarily Unavailable on the 20th and 21st of May for Maintenance

Maybank has informed its customers about temporary service unavailability...


Please enter your comment!
Please enter your name here