Gov’t to have comprehensive study on EV road tax structure; fees need to be competitive – Loke

Gov’t to have comprehensive study on EV road tax structure; fees need to be competitive – Loke

Transport minister Anthony Loke said a comprehensive study will be conducted for the electric vehicle (EV) road tax structure.

“There will be a study on how to impose road tax against EVs. There should be a comprehensive study on the structure fees so it is aligned with our policies. In our efforts to encourage the use of EVs, there should be incentives from various aspects such as competitive road tax fees, and facilities such as charging stations,” he said yesterday, reported by NST.

Is that a hint at lower road tax for EVs? Because the current structure is not just uncompetitive compared to regular internal combustion engine cars, it’s much higher. While EVs are currently enjoying road tax exemption, valid till the end of 2025, we’ve discovered that road tax from 2026 onwards is pretty steep.

Gov’t to have comprehensive study on EV road tax structure; fees need to be competitive – Loke

Road tax for EVs in Malaysia – click to enlarge

While ICE vehicles have their road tax calculated based on engine capacity, EVs follow a kilowatt-based system. The final road tax amount for an EV is calculated based on the total power rating of the electric motor(s), with different power brackets determining the base rate and accompanying progressive rate (if applicable). There are categories for saloons and SUVs or jip, as JPJ classifies them. The latter is lower.

Perhaps the best EV vs ICE road tax example is the Volvo XC40, which is available as a full EV (Recharge Pure Electric), priced at RM278,888. Its 300 kW output attracts road tax of RM4,503 per year. An XC40 with a 1.5L plug-in hybrid powertrain is priced at RM268,888, but the road tax is just RM90. The owner of the 2.0L mild hybrid variant pays RM380.

A more affordable EV is the BYD Atto 3, which will have a road tax of RM903 per year. A similarly-sized Honda HR-V in e:HEV RS hybrid guise with a 1.5L engine pays 10 times less road tax at RM90. Click here for a detailed dive into Malaysia’s current road tax structure and to see the road tax of all EVs currently on sale here.

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Lato lato on Feb 23, 2023 at 10:29 am

    Meanwhile, previous transport minister suddenly grew 3 balls and comparing sizes with mat Sabu in parliament

    Like or Dislike: Thumb up 5 Thumb down 1
    • Dah Menang Semua on Feb 23, 2023 at 1:03 pm

      Charges on the list looks fair

      If U buy >200kW high-power
      Only the roadtax will goes >2K
      So U want racing, bayar lah lebih

      Like or Dislike: Thumb up 4 Thumb down 2
      • RuMing on Feb 24, 2023 at 9:07 am

        Boleh kah racing dengan suv…? Yang pending ialah range. Policy wise also wrong. To encourage switch to EV and discourage ICE but road tax higher seriously…

        Like or Dislike: Thumb up 2 Thumb down 0
  • Bob Mal on Feb 23, 2023 at 10:34 am

    These prices are ridiculous and all just based on the power kW:

    So based on the list best deal ever is the EQA250 AMG with one of the best 66kWh battery but only pay RM727 bigger battery than China cars also and partly pay lower tax.

    Like or Dislike: Thumb up 6 Thumb down 1
  • Robinhood on Feb 23, 2023 at 10:46 am

    Aiseh, can afford EV sure can afford the roadtax. Consideration should also be taken into the price of the car. You pay RM500k for the car, but can’t afford RM2k for the roadtax. What nonsense! Buat malu je…

    Like or Dislike: Thumb up 11 Thumb down 12
    • This is about fairness. The poor also must contribute to the country in the form of taxes. If poor do not pay taxes, they will not appreciate the cost of running the country and feel the pain of paying taxes and keep on voting for hopeless wasteful gomen.

      Like or Dislike: Thumb up 3 Thumb down 1
  • Civic Turbo 2018 on Feb 23, 2023 at 10:47 am

    Who will govt please?

    EV as performance car…. T20
    EV as green commuter…. M40/B40

    EV = heavy vehicle = more road repairing

    Like or Dislike: Thumb up 14 Thumb down 1
  • Logic Common Sense on Feb 23, 2023 at 11:19 am

    EV road tax should be cheaper than petrol car road tax.

    Like or Dislike: Thumb up 11 Thumb down 9
    • Li Peng on Feb 23, 2023 at 12:28 pm

      More weight, more road repairs.

      Like or Dislike: Thumb up 5 Thumb down 5
      • evjpjcars on Feb 23, 2023 at 12:58 pm

        Weight on road surfaces for EV are distributed with Wider Tyres. It is OVER LAODING that causes 90% of Road Damages. Not Cars which is “HEAVY” . Tyres are designed to account for this !!!

        Like or Dislike: Thumb up 2 Thumb down 2
      • Habibu on Feb 24, 2023 at 8:43 am

        Then people above average weight should charge more ? lol…what kind of nonsense

        Like or Dislike: Thumb up 2 Thumb down 1
  • Anwar Supporter on Feb 23, 2023 at 11:28 am

    Tax the rich, help the poor.

    Like or Dislike: Thumb up 8 Thumb down 6
    • Ah Chong on Feb 23, 2023 at 2:41 pm

      Not that simple, even if the government openly admit to do that.

      Think of what will happen if the rich just left and you lost a source of revenue. I think taxing the rich is just like paying the poor.

      On one hand, need to tax them just enough so they don’t run away and you can continue to tax them.

      On the other hand, need to pay the poor just enough to make them don’t rage quit but forever work for very little. Such is life. Not fair.

      Like or Dislike: Thumb up 1 Thumb down 0
  • meat lover on Feb 23, 2023 at 12:17 pm

    hi danny, may i know what is the certain herbal meat soup that you love

    Like or Dislike: Thumb up 1 Thumb down 0
  • problem with Malaysians on Feb 23, 2023 at 12:30 pm

    The problem with B40 is, when they see T20 getting benefits from Gomen, they jeles. make noise. But B40 ask for help, itu ketuanan kita.

    Like or Dislike: Thumb up 10 Thumb down 1
  • Roadtax for ICE above 3liters deserves reduction attention too. Steep exponential logarithm rooftop increases.

    Like or Dislike: Thumb up 2 Thumb down 1
  • Laugh on Feb 23, 2023 at 3:54 pm

    The main problem is how many actual T20s are masking themselves as M40 and B40.

    Tax paying B40 bracket but lives T20 lifestyle.
    How many T20s are living the live of M40 and even B40.

    The whole system is lopsided.
    What more can be said about the Roadtax system.

    Like or Dislike: Thumb up 3 Thumb down 1
  • Bieight8 on Feb 23, 2023 at 4:48 pm

    Road tax should be based on mileage, the more you use the road the more you pay…

    Like or Dislike: Thumb up 4 Thumb down 1
  • Paul Tin on Feb 23, 2023 at 10:48 pm

    The high road tax for EV car would surely discourage more people from turning to EV.

    Like or Dislike: Thumb up 2 Thumb down 0
 

Add a comment

required

required