EV road tax structure in Malaysia – how it’s calculated, and how rates are different for sedans and non-sedans

EV road tax structure in Malaysia – how it’s calculated, and how rates are different for sedans and non-sedans

As more electric vehicles (EVs) begin to make their way into Malaysia, it seems a good time to update readers on the vehicle road tax structure for these, given the official introduction of the BMW iX xDrive40 EV SUV earlier today and to clear up why its road tax is priced as it is.

In 2019, we published a story highlighting that the road transport department (JPJ) was set to move towards calculating the road tax rates for full-EVs (both motorcycles and cars) based on their motor kilowatt output instead of the traditional engine cc displacement as previously utilised. The switch to this has been made, as reflected by the road tax rates of EVs launched since then.

The rates of the new kilowatt-based road tax for private saloon motorcars were highlighted in that story, allowing calculations to be made for probable EV models for our market based on their kW output, and this has been established with great accuracy (as in the case of the Porsche Taycan, for example).

UPDATE: You can now use our EV Road Tax Calculator to calculate how much you would have to pay for your EV’s road tax in Malaysia.

EV road tax structure in Malaysia – how it’s calculated, and how rates are different for sedans and non-sedans

However, if you apply those specific rates for the iX xDrive40, the final calculation doesn’t match. Based on that table, it should be RM3,454, but the price list of the car states that the road tax is RM3,063, which is RM391 less.

So what gives? We reached out to JPJ, which said that the EV road tax rates are unchanged and follows that prescribed in the table, so there was nothing amiss on that front. As it turns out, the answer is simple enough. There is another set of road tax rates for other private vehicle types besides saloons (or sedans, if you will), which was not established in the story at that point.

The road tax rate for this differs from that for saloon motorcars, and completes the picture in establishing what the road tax will be EVs, based on their body-type. Before we head into a breakdown of the iX’s road tax, let’s recap the price structure of primary categories under the new kW-based system, including the one that wasn’t highlighted previously.

Click to enlarge.

For electric motorbikes (code AA), the road tax for such two-wheelers with an output rating of 7.5 kW and below will be set at a fixed rate of RM2.

For e-motorcycles with a motor output rated above 7.5 kW, the rate is calculated as:

  • Above 7.5 kW to 10 kW – RM9
  • Above 10 kW to 12.5 kW – RM12
  • Above 12.5 kW to 25 kW – RM30
  • Above 25 kW to 40 kW – RM40
  • For e-motorbikes with an output of above 40 kW – RM42

As for private saloon motorcars – individual (code AB) and company registration (AC) – with a rated output of 80 kW and below, the rates are as such:

  • 50 kW and below – RM20
  • Above 50 kW to 60 kW – RM44
  • Above 60 kW to 70 kW – RM56
  • Above 70 kW to 80 kW – RM72

Vehicles with a rated motor output of above 80 kW will have a base road tax applied as well as a progressive rate calculated into the final sum. The road tax rate is calculated as follows, starting with a base rate and an additional rate for each kW increase:

  • Above 80 kW to 90 kW – RM160, and RM0.32 sen for every 0.05 kW (50 watt) increase from 80 kW
  • Above 90 kW to 100 kW – RM224, and RM0.25 sen for every 0.05 kW (50 watt) increase from 90 kW
  • Above 100 kW to 125 kW – RM274, and RM0.50 sen for every 0.05 kW (50 watt) increase from 100 kW
  • Above 125 kW to 150 kW – RM524, and RM1.00 for every 0.05 kW (50 watt) increase from 125 kW
  • Above 150 kW – RM1,024, and RM1.35 for every 0.05 kW (50 watt) increase from 150 kW

EV road tax structure in Malaysia – how it’s calculated, and how rates are different for sedans and non-sedans

Now, we come to the part missing initially. For private vehicles aside from saloon motorcars (like SUVs) – individual (code AD) and company registration (AE) – with a rated output of 80 kW and below, the rates are as follows:

  • 50 kW and below – RM20
  • Above 50 kW to 60 kW – RM42.50
  • Above 60 kW to 70 kW – RM50
  • Above 70 kW to 80 kW – RM60

Vehicles in this category with a rated motor output of above 80 kW will have a base road tax applied as well as a progressive rate added into the final sum. The road tax rate is calculated as follows, starting with a base rate and an additional rate for each kW increase:

  • Above 80 kW to 90 kW – RM165, and RM0.17 sen for every 0.05 kW (50 watt) increase from 80 kW
  • Above 90 kW to 100 kW – RM199, and RM0.22 sen for every 0.05 kW (50 watt) increase from 90 kW
  • Above 100 kW to 125 kW – RM243, and RM0.44 sen for every 0.05 kW (50 watt) increase from 100 kW
  • Above 125 kW to 150 kW – RM463, and RM0.88 sen for every 0.05 kW (50 watt) increase from 125 kW
  • Above 150 kW – RM903, and RM1.20 for every 0.05 kW (50 watt) increase from 150 kW

EV road tax structure in Malaysia – how it’s calculated, and how rates are different for sedans and non-sedans

As you can see, the road tax rate for non-saloon private vehicles is lower from the baseline to above 150 kW (except in the 80 kW to 90 kW category, strangely, where it is RM5 more than for saloon-based EVs). Incidentally, this tax rate is shared with EVs used as driving institution vehicles.

With this, it’s easy to calculate the iX xDrive40’s road tax to that listed, which is not under the saloon category, but as non-saloon vehicle, given its definition as an SUV (it’s likely classified as jip – or jeep – under the department’s categorisation structure).

The iX xDrive40 has a 240 kW output. Based on the non-saloon rate, it pays RM903 (base rate up to 150 kw) and RM2,160 for the remaining 90 kW (at RM1.20 for every 50 watts more than 150 kW), which adds up to the RM3,063 road tax as printed.

EV road tax structure in Malaysia – how it’s calculated, and how rates are different for sedans and non-sedans

Interestingly, the iX tax also highlights that the 50% road tax reduction for electric and hybrid cars announced by the PH government in 2019 may no longer be in place. Recipients of this incentive included the second-generation Nissan Leaf. The Leaf’s 110 kW motor meant that it would pay RM374 (RM274 base rate plus RM100 on the calculated increase from 100 kW) in road tax, based on the saloon motorcar rate. However, its road tax payable was RM187 when it was launched in July 2019.

Similarly, the Porsche Taycan also enjoyed the discounted rate at point of introduction here. For example, the Taycan 4S, with an output of 390 kW, has a road tax of RM7,504 (RM1,024 base rate plus RM6,480 as scaled on the 240 kW difference from 150 kW), but its payable road tax was RM3,752. It’s not known if this incentive is still in place.

There has of course been talk of zero road tax for EVs under the specific EV policy that will be announced by the government. The plan proposes the allowance for foreign automakers to bring in a number of completely built-up (CBU) units with zero excise and import duties (as previously reported), but also offering them full sales tax exemption and zero road tax. There is however no word on when the policy, which was supposed to have been unveiled in Q1 this year, will be announced.

Whatever the case may be, the full table now allows the calculation of EV road tax to be made for models sold here, according to vehicle type. As before, hybrids and plug-in hybrids (PHEV) will continue to pay road tax based on regular cc displacement for combustion engines, meaning there is no change no matter what kind of output their motors offer.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Afeeq on Aug 26, 2021 at 7:42 pm

    The dumbest road tax knitting I’ve ever seen. Glad I live in America. Pity all those Malaysians who thought that with the coming of EVs – they can finally afford a quality non-National car without paying insane taxes. Oh well, look likes they have to make do with underpowered P1 and P2 future tin kosong kei car like EVs.

    Like or Dislike: Thumb up 75 Thumb down 54
    • Sohai on Aug 26, 2021 at 11:40 pm

      Who define the road tax EV is brainless (otak udang). U know why there are road tax? Because to collect tax for road damage repair purpose due the the weight of vehicle on the road. That why lorry have the higher road tax compare to car. Among car, more higher cc normally more slightly heavy the vehicle and more higher road tax.
      With these road tax comparison, do EV vehicle is 3000x time more damage to tar road compare gasoline vehicle?

      Well-loved. Like or Dislike: Thumb up 55 Thumb down 4
    • Brian on Aug 27, 2021 at 12:19 am

      Congrats so now we know our EV policy is really working behind the scenes and kicking the arses of every other in the region. Well done PN era policy!

      Like or Dislike: Thumb up 31 Thumb down 2
    • Memalukan wei.... on Aug 27, 2021 at 7:41 am

      Yeah right…..
      In US different state imposed different tax to EV ranging from as low as 50 dollar a year to 200 dollar a year. U guys over there are dumber or specifically only you are dumb enough to be fooled as they chanhe the name from road tax to some other tax?

      Like or Dislike: Thumb up 25 Thumb down 4
    • Aura89 on Aug 27, 2021 at 9:03 am

      https://paultan.org/2021/08/24/tesla-destination-supercharger-network-top-jd-charts/
      [EV survey: owners want free and fast public chargers]

      Yeah pity we aren’t rich enough to sponsor free charging for spoilt brats with their YOLO cars and their selfish attitudes. I hope you turn on Autopilot
      https://paultan.org/2021/08/17/tesla-probed-by-nhtsa-for-autopilot-crashes-into-first-responder-vehicles-765000-cars-could-be-affected/

      Like or Dislike: Thumb up 9 Thumb down 3
    • Why need to go sore over roadtax cost when servicing EV is 60% cheaper than an ICE car?

      Like or Dislike: Thumb up 8 Thumb down 5
    • SmartConsumer on Sep 03, 2021 at 10:49 am

      The US does not have any exciting EV scenes. Boring options over there. The EV scenes witll be big in Europe and Asia buddy. America is a crumbling nation

      Like or Dislike: Thumb up 3 Thumb down 2
    • OneMalaysia on Oct 25, 2021 at 4:30 pm

      Our road tax system is link with our insurance. Therefore you cant buy roadtax without insurance. In America you can even buy cars without insurance. No control at all. You need to check every car to see if they have insurance. A waste of bloody time and money. Everyone paya for roadtax here so we are all happy to share the road together. In America they fight even for a parking spot. Fight which means brutal fight. Not just arguements. Malaysia have all these laws so protect people in cases for insurance claims. Malaysia is way far ahead than America when it comes to these kinds of things. Everything is computerised. Even roadtax and insurance. In America you still need to carry your covernote with you. We dont. Our roadtax shows all.

      Like or Dislike: Thumb up 17 Thumb down 5
    • Malaysian goverment idiot . Tamak duit only

      Like or Dislike: Thumb up 4 Thumb down 4
  • Kevin on Aug 26, 2021 at 8:00 pm

    This is why our vehicle industry isn’t as robust as our close neighbours. We are protectionist in our regulation to enrich the elites in our nation. Before, cheap fuel = expensive road tax. Future, expensive electricity = expensive road tax. I better stick to my V8, than switch to EV.

    Like or Dislike: Thumb up 40 Thumb down 6
    • Brian on Aug 27, 2021 at 12:20 am

      We may have lagged others to start the rEVolution but now with Operation EV Surge, we are fast catching up with others.

      Like or Dislike: Thumb up 8 Thumb down 4
      • I'll believe it when I see it on Aug 27, 2021 at 6:22 pm

        I won’t hold my breath. I’ll only sing praises WHEN the policy has been implemented and manufacturers are choosing to invest in Malaysia.

        They can promise and show all sorts of fancy presentation with amazing targets and goals, but looking at GreenTech’s 25,000 chargers by 2020 and how incredibly far they missed that mark… I’m not hopeful.

        Like or Dislike: Thumb up 10 Thumb down 0
        • https://paultan.org/2021/08/26/evs-more-than-60-cheaper-to-maintain-vs-ice-cars-%e2%80%a8bmw-ix-service-package-vs-x5-in-malaysia-compared/
          https://paultan.org/2021/08/26/at-rm420k-the-bmw-ix-ev-is-a-bargain-in-malaysia/
          If this doesn’t convince you then nothing will, the reason why our EV adoption is so slow cuz people rather wait & see, but during that time complains why EV is moving so slow. lol

          Like or Dislike: Thumb up 2 Thumb down 1
      • we will never catch up with this insane road tax rate for EV.

        Like or Dislike: Thumb up 0 Thumb down 0
    • hafiizh on Aug 27, 2021 at 11:09 am

      long live V8

      Like or Dislike: Thumb up 5 Thumb down 0
  • The road tax structure was a mess before and it’s a mess now. It should be based on book value instead of power output.

    A 10 year old Porsche taycan should not cost 9k for road tax when the value of the car is would be just RM100k because of depreciation.

    This happen to luxury cars today where a perfectly good luxury gas car cost only 25% of original price but economically expensive because of the ridiculously high road tax based on CC. Another fairer tax mechanism is to tax based on consumption instead of possession. Gas tax yes. Book value tax yes. Not high tax because you own a big engine CC car. Or a high powered electric motor for that anyway

    Like or Dislike: Thumb up 27 Thumb down 8
    • nobody buy RM500k expensive cars with if it’s less than 200hp/200kw.

      Expensive cars naturally comes with big output.
      so it’s fine. Big Capacity Engines Vehicles usually consume excessive Petrol/Electric too, it’s obviously a rich man wasting/happily spending resources here.

      There is no issue here.
      it’s only poorman imagine buy used car big CC cheap cheap, still want cheaper road tax.

      Like or Dislike: Thumb up 7 Thumb down 8
    • pullmyfinger on Aug 26, 2021 at 10:17 pm

      They are obviously doing it this way so people wouldn’t take advantage of the used market. They want you to buy cars rebranded by proton undercutting their competitors as usual and they want you to keep buying the same brand over and over.

      Like or Dislike: Thumb up 11 Thumb down 1
    • Brian on Aug 27, 2021 at 11:09 am

      Road tax is not the problem, the lack of EV infra is the big issue here. It takes a Nissan Leaf up to 24 hours (yeah 1 WHOLE DAY!) just to travel 1000km. Give free roadtax still won’t convince people to buy.

      Like or Dislike: Thumb up 9 Thumb down 1
    • SmartConsumer on Sep 03, 2021 at 10:51 am

      It should be based on the weight of the car or something sensible. The current otak udang minister probably spend 10 minutes thinking about it and hastily implement the new policy. We see it too often in our gov.

      Like or Dislike: Thumb up 6 Thumb down 0
  • Bieight on Aug 26, 2021 at 9:13 pm

    If you buy an EV you should pay a single cent on any form of taxes

    Like or Dislike: Thumb up 3 Thumb down 4
  • Lennon Lee on Aug 26, 2021 at 9:17 pm

    Malaysia ICE road tax structure has been a joke for decades. “Dulu, kini dan selamanya” style.

    Not surprised at all for EV orad tax structure.

    Like or Dislike: Thumb up 21 Thumb down 1
  • Abdul on Aug 26, 2021 at 9:20 pm

    If the government want to implement the kilowatt/power output based roadtax, why don’t include the ICE engine as well. The current cc based tariff is too outdated and dumb with modern turbo cars getting through the massive loophole. Why discriminate EVs?

    Like or Dislike: Thumb up 18 Thumb down 3
  • coodusz on Aug 26, 2021 at 9:26 pm

    If the government want to implement Kw/power output based tariff, why don’t implement to the ICE powered car as well. The current cc based tariff is too outdated and dumb. Why discriminate EVs?

    Like or Dislike: Thumb up 9 Thumb down 1
  • paparadzi on Aug 26, 2021 at 10:51 pm

    One of the saddest thing here is that some of the so-called automotive enthusiast do agree and trying to justify these ridiculous road tax calculation.

    Like or Dislike: Thumb up 11 Thumb down 1
    • Darren on Aug 27, 2021 at 9:25 am

      It makes perfect sense when you consider that electricity generation to power EV are not always generated from environmentally friendly ways, much of Malaysia’s powergrid are sourced from coal & oil fired plants. Power delivery is also another issue as EV chargers need separate power lines, those Tesla quickchargers are not connected to the general powergrid. Coupled with the fact that EV vehicles are generally heavier than ICE versions, the wear on road surface is even higher. You haven’t factored in the cost to replace used batteries that might be disposed improperly.

      Even many of those early adopter countries ie Norway, have pulled back many of the incentives and deductions for EV cars. EV is nothing more than just a bait and switch then dump you with car that only last 5-10 years.

      Like or Dislike: Thumb up 14 Thumb down 7
  • dong gor on Aug 27, 2021 at 11:46 am

    Road tax base on battery size…seriously?
    Previous one based on engine capacity is already plague with ‘bodoh’ and still want to stick to same legacy with reincarnation!! Think again please using other countries as example…plus Ever where is already collection toll in malaysia!

    Like or Dislike: Thumb up 4 Thumb down 3
    • Darren on Aug 27, 2021 at 12:33 pm

      You prefer Norway’s method of taxing cars by their weight?
      Wouldn’t that make an iX roadtax (2.5ton) the same as a petrol X5 (2.5ton)?
      So you prefer to pay MORE then, I see? You must be rich or from rich countries like Norway.
      The poorer folks here prefers these ridiculous roadtax that make cars cheaper to own and use.

      Like or Dislike: Thumb up 6 Thumb down 3
    • kW, not kWh on Aug 27, 2021 at 6:17 pm

      kW is the power of the electric motor, not kWh the capacity of the battery.

      Like or Dislike: Thumb up 5 Thumb down 0
  • Krish on Aug 27, 2021 at 2:17 pm

    So easy to work around it, car manufacturers just need to add on a small petrol engine (to be used to charge the battery only) n call it hybrid. U back to paying kancil’s roadtax.

    Like or Dislike: Thumb up 8 Thumb down 0
  • Chin JM on Aug 27, 2021 at 5:43 pm

    I propose that all senior citizens with valid driving license and owns a car should be given free road tax up to 2 liter cars and 70% discount from 2 to 2.99 liter cars. Above 3 liters no discount.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Can't brain on Aug 27, 2021 at 6:19 pm

    SUV’s road tax is cheaper than saloon, when all logic says it should be the other way…

    SUV generally heavier, causing more wear and tear on the infrastructure, not to mention less efficient, so not as good for the environment as well….

    But who am I to judge, I’m just a regular rakyat.

    Like or Dislike: Thumb up 9 Thumb down 1
    • EV saloon road tax will be even cheaper than equivalent petrol sedan if going by these calculations.

      Like or Dislike: Thumb up 1 Thumb down 0
  • nikazlanbotak on Aug 27, 2021 at 7:18 pm

    Long live petrol/diesel….malaysia govt is too buduh to encourage EV

    Like or Dislike: Thumb up 3 Thumb down 0
  • Semi-Value (Member) on Aug 27, 2021 at 10:59 pm

    i think it makes sense, more power more tax. but on the other end this would not encourage people to use ev’s

    Like or Dislike: Thumb up 9 Thumb down 0
    • Arnie on Aug 27, 2021 at 11:25 pm

      People should use EV not because they were forcibly coaxed, or enticed by artificially lowered prices or subsidised benefits. EV must be a choice to become green.

      Like or Dislike: Thumb up 2 Thumb down 4
      • Semi-Value (Member) on Aug 28, 2021 at 8:03 pm

        if TNB can decommission all its gas and coal power plants then yes. otherwise its a false illusion. not to forget the rare earths needed to make the ev batteries

        Like or Dislike: Thumb up 8 Thumb down 1
      • Warga Putra on Aug 29, 2021 at 8:41 pm

        EV is not green if power come from fossil fuel. It is only partially green becauseess direct polution. But it only transfer the polution to the power plant.

        Like or Dislike: Thumb up 1 Thumb down 0
  • Kereta terbang on Aug 28, 2021 at 7:24 am

    Nanti bila ada kereta terbang, tak payah bayar road tax sebab tak guna jalanraya. …. Tapi, mungkin ada cukai lain, contohnya cukai langit.

    Like or Dislike: Thumb up 6 Thumb down 1
  • Guest on Aug 29, 2021 at 8:42 pm

    EV is not green if power come from fossil fuel. It is only partially green becauseess direct polution. But it only transfer the polution to the power plant.

    Like or Dislike: Thumb up 0 Thumb down 2
  • AMG A45s on Aug 30, 2021 at 10:07 pm

    a Mercedes Benz AMG A45s with a 2.0 Liter Engine (road tax RM380) has about 310kW.

    So JPJ dumb? Basically the govnerment is saying we’re a bloody oil country and we’ll never support EV until the barrel run dries.

    Like or Dislike: Thumb up 6 Thumb down 0
  • Super So-high on Oct 26, 2021 at 5:24 pm

    It seems that the government is very much aware that if road tax of ev, as well as its import duty and excise duty were to set to lowest level or near zero, Petronas would no longer be able to churn out cash for the blood sucking, juice squeezing, pipe-leaking and cash registers bottoming governmental agencies.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Jonathan on Jan 07, 2023 at 10:59 pm

    The calculation for EV cars was too expensive to go with. If this is the price to go with EV, how do majority rakyat Malaysia can buy EV. Maybe Proton and Perodua need to go underpowered EV when they try to introduce EV to the market.

    Like or Dislike: Thumb up 0 Thumb down 0
    • EV Lover on Feb 18, 2023 at 10:41 am

      The current calculation on road tax for EV is killing the EV market. The high road tax of EV compared to fosil fuel car has no incentive at all for EV and government’s aspiration as carbon neutral nation by 2050.
      There are many advantages by switching to EV; just to name a few below:
      1: Government save billions of ringgit in petrol subsidising program
      2: It helps to sell more electricity at off-peak hours as many tend to charge their EV at night
      3: Cleaner environment
      4: No engine noise, reduction of noise pollution

      Like or Dislike: Thumb up 1 Thumb down 0
  • Lemonage on Apr 30, 2023 at 3:29 pm

    The Mysia gomen 1 one hand will follow the world promoting environment friendly green car, but in another hand discourage it by high roadtax.
    Luxury imported petrol cars…roadtax is much cheaper. And our petrol is not that expensive even do is should be much cheaper, as malaysia is oil producing country. So now u know the reason why MY roadtax is expensive.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Revisit this post on 2023 after the launch of BYD Dolphin. The car rated at 150kW and the moment the roadtax is exempted, but soon when it’s effective, the roadtax will be damn expensive at RM 1024!

    The structure actually has some flaw formulae and still need to be revised over the time, the cost of EV getting cheaper and cheaper, so does the output. It’s fair the last time because high power output only can be had on high end car, but now it’s not fair for cheap EV like this Dolphin only cost 124K but the roadtax is exorbitant RM1024 like luxury a car. Roadtax alone! not including the insurance yet.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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