Transport Ministry Working On New EV Road Tax Structure

chargev / Yinson GreenTech ev road tax structure ministry transport

Transport minister Anthony Loke today has revealed that the ministry is currently at work on a new road tax structure for electric vehicles (EVs). He noted that the rework is essential because the previous government had given road tax exemption for such vehicles only until 2025.

“Consumers are generally concerned about the EV road tax structure because if based on the old formula, the cost impact is high and can reach RM4,000 to RM5,000 a year,” he told reporters after attending the Green Mobility and Transport Forum that was held earlier today. “I have directed officers at MOT (Ministry of Transport) to study this matter based on feedback from consumers and companies providing EVs.”

For context, the current road tax for EVs in Malaysia is calculated based on its vehicle class (saloons, SUVs, coupes, etc) and also the maximum kW that’s generated by its electric motor. In essence, the formula follows the same way how internal combustion engines vehicles are taxed based on their class and engine capacity or cc displacement, though the results are not as clear cut as one would expect.

Transport minister Anthony Loke Prasarana train LRT frequency
Transport Minister Anthony Loke (Image: Bernama)

According to JPJ’s official guidelines on EV road tax calculations, a saloon-based EV that’s capable of generating over 150kW of power (equivalent to over 200hp) are taxed at a base rate of RM1,024, with a progressive rate of RM1.35 per 0.05kW. In comparison, a petrol-powered car that can generate 195hp of power is taxable at only RM90.

Thankfully, as mentioned earlier, EV owners can still breathe easy as they are still exempted from being taxed until 2025. Loke said that the new EV road tax structure is expected to be unveiled at the end of this year, and would feature prominently in MOT’s Budget 2024 proposals.

EV electric vehicle car cars
(Image: Pexels)

Additionally, the transport minister noted that Malaysia would continue to work with Sweden to enable both countries to learn and cooperate on initiatives that promote sustainable transport modes. “We can leverage Sweden’s best practices and expertise in EV adoption, charging infrastructure and smart traffic systems, among others, to accelerate the transition to e-mobility in Malaysia,” he added.

(Source: Bernama)

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