Gov’t currently working on new EV road tax structure, to be revealed end-2023 – high cost concerns noted

Gov’t currently working on new EV road tax structure, to be revealed end-2023 – high cost concerns noted

Currently, there’s some uncertainty about road tax for electric vehicles (EVs), which is free until 2025. After the exemptions end, and assuming there are no further exemptions, EVs will be attracting very high road tax based on the current structure – how about RM4,503 per year for a Volvo XC40 Recharge Pure Electric (an XC40 PHEV pays just RM90) or RM903 for the BYD Atto 3?

Pretty high all right. But a new EV road tax structure is currently being worked on by the transport ministry, and according to minister Anthony Loke, the new structure is set to be unveiled at the end of this year. It will also feature in the ministry’s Budget 2024 proposals.

Loke said that a new structure is essential because the previous administration’s road tax exemption for EVs is 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 said at the Green Mobility and Transport Forum in Cheras today, reported by Bernama.


Under the current structure, the Volvo XC40 EV attracts RM4,503 road tax while it’s RM90 for the PHEV

“I have directed officers at MoT to study this matter based on feedback from consumers and companies providing EVs. This is part of our efforts to encourage users to switch to this type of vehicles,” he said, adding that policies on EV usage should be clear to facilitate efforts to migrate to more sustainable forms of transport.

Loke’s remarks are pretty strong hints that the new road tax structure for EVs will be friendlier to pockets. It’s also consistent with what he has said before on this topic.

“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 was quoted as saying in February.

Gov’t currently working on new EV road tax structure, to be revealed end-2023 – high cost concerns noted

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 above-mentioned 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. The same SUV 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 version pays RM380.

A more affordable EV is the BYD Atto 3, which will have a road tax of RM903 per year. Sounds much lower, but 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. A change is needed for EVs to appeal to a wider audience.

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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

  • t333son on May 16, 2023 at 5:37 pm

    pls factor in vehicle weight, power output, torque output, mileage, length and width of vehicle . These will directly impact on the road’s wear and tear and maintenance.

    Like or Dislike: Thumb up 14 Thumb down 1
    • dellen on May 16, 2023 at 5:42 pm

      as the road tax does not go into a fund that is used for maintenance of roads, it is not necessary to corelate the price of road tax to all the specs you mentioned

      Like or Dislike: Thumb up 14 Thumb down 1
      • munkay on May 16, 2023 at 9:42 pm

        agreed, I think you got that right – then perhaps the next question we the rakyat should be asking is why not the funds get allocated into the maintenance of roads

        Like or Dislike: Thumb up 3 Thumb down 0
        • Civic Turbo 2018 on May 17, 2023 at 10:44 am

          High performance EV = T20 buyers
          Gomen cannot compare those China entry EV with those (0-100 <6s) Tesla, Taycan, iX, EQS etc..

          Like or Dislike: Thumb up 7 Thumb down 1
    • Crony on May 17, 2023 at 8:01 am

      This is a gomen by the rich, for the rich, and to perpetuate ketuanan orang kaya. UBAH Gomen!

      Like or Dislike: Thumb up 9 Thumb down 8
  • Ben Yap on May 16, 2023 at 5:39 pm

    i mentioned before that Malaysian government support for EV is just wayang kulit. the high cost for charging and road tax is a good testament that it just for show with no real intention to support EV due to the protectionism for Proton and Perodua.

    Like or Dislike: Thumb up 20 Thumb down 10
    • Yeahsure on May 16, 2023 at 8:08 pm

      If u cant afford an EV.. Means its not for you… Regardless of what the government stance is.. Unless you are of of those T20s who constantly whinge about everything, in that case, u deserve to pay sky high taxes..

      Like or Dislike: Thumb up 16 Thumb down 1
    • IIIIIIIIII on May 16, 2023 at 10:39 pm

      Proton & Perodua will bring in EVs sooner or later. They don’t want people to turn away from Evs.
      I’d argue their protectionism includes not bringing in cars from other brands that would undercut or directly compete with Proton & Perodua in terms of pricing. They know they wouldn’t stand a chance when consumers have more choices.

      Like or Dislike: Thumb up 1 Thumb down 1
  • EV Mafia on May 16, 2023 at 6:03 pm

    EV exemption will continue until Geely/proton is ready with some products which will likely be by 2025. A hybrid transition will be a better thing.

    Like or Dislike: Thumb up 6 Thumb down 6
    • Ongtk on May 16, 2023 at 7:38 pm

      Exactly. I do not understand why our government is not encouraging hybrid vehicles ownership.

      Like or Dislike: Thumb up 2 Thumb down 4
      • Because Hybrids combine the disadvantages of both, ICE’s and EV’s: Lots of mechanical parts, heavy, complicated to maintain.

        Like or Dislike: Thumb up 5 Thumb down 1
  • Thats why toyoda san already ASK U all to use hybrid la….no need see EV first …

    Like or Dislike: Thumb up 1 Thumb down 4
  • Keyboard warrior on May 16, 2023 at 10:06 pm

    Road tax and insurance rate should be based on vehicle horsepower not engine/battery capacity

    Like or Dislike: Thumb up 2 Thumb down 2
    • Nangka on May 17, 2023 at 11:01 am

      Agree that road tax should be based on power output. However there should also be certain deterrents against high engine capacity petrol guzzler cars.

      Like or Dislike: Thumb up 1 Thumb down 0
    • What in your opinion is the difference between “vehicle horsepower” and “engine capacity”?

      Like or Dislike: Thumb up 0 Thumb down 0
      • Yee Long Must on May 17, 2023 at 2:35 pm

        Agreed, horsepower output from 1 litre turbocharged engine similar to horsepower of 1.5 litre natural-aspirated engine

        Like or Dislike: Thumb up 2 Thumb down 0
    • You never read carefully the chart above, the current road tax calculation for EV is based on power output in KW (see the power column) not battery capacity.

      Like or Dislike: Thumb up 0 Thumb down 0
    • You compare chart above between Nissan Leaf and Kona e-lite then you will able to see the road tax is based on power output in KW not capacity.

      Like or Dislike: Thumb up 0 Thumb down 0
  • M50B25 on May 16, 2023 at 11:26 pm

    Please factor weight (that destroys our road surfaces), and emissions (poorly maintained vehicles that pollutes). Loud cars should be taxed higher too.

    Like or Dislike: Thumb up 3 Thumb down 2
  • Revisit ICE Road Tax too on May 16, 2023 at 11:59 pm

    The Road Tax for ICE is broken. It needs adjustments as well.

    Easiest will be to adjust the Road Tax to the value of the car’s purchased price.

    Like or Dislike: Thumb up 4 Thumb down 2
  • Fauzi on May 17, 2023 at 12:46 am

    road tax for cars should be based on weight alone…heavy cars damage roads and EV cars are heavy..
    .no kilowatt nonsense..

    Like or Dislike: Thumb up 6 Thumb down 1
  • Nik D on May 17, 2023 at 2:55 am

    Government is subsidizing high M40 and T20 group for EV vehicle.

    Like or Dislike: Thumb up 1 Thumb down 2
  • ROTI CANAI on May 17, 2023 at 7:22 am

    whatever only rich ppl can afford EV, tax them

    Like or Dislike: Thumb up 8 Thumb down 0
  • Just use the retail price of the EV to calculate roadtax. EV has high motor power due to their nature of drive unit and to counter its additional battery weight. So tax based on retail price is fair… ppl with money, sure can afford higher roadtax. then it’s become a competition for maker to make affordable/cheaper EV, so that it will be enlisted into the cheaper tax bracket (attract customer). Just like why some car offer 2.0 and a 1.6/1.5 liter ICE, ppl go to lower cc, not just because the car is cheaper, but the annual roadtax also very much cheaper. my 2 cents.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Laugh on May 17, 2023 at 9:57 am

    What a joke.
    Look at the table, the higher roadtax ones are the branded Conti’s.
    What do they expect?
    Already tax free but still want RM20 roadtax like Axia?

    Complete utter nonsense.

    All these EVs currently available are all Big Boys Toys meant only for the high income T10s.
    Trying to protect their asset value lah tu…

    Like or Dislike: Thumb up 0 Thumb down 1
  • Since the govt is revising the road tax structure for EV, they should revise the road tax structure for petroleum cars based on the kW (mechanical hp to kW) so that it is fair. Nowadays, cars like the GR Yaris is producing more than 250hp but the road tax is the same as a Myvi. Modern cars now use force induction to generate more hp while using less engine capacity. Not many people have the luxury to change cars.

    Like or Dislike: Thumb up 1 Thumb down 1
    • “mechanical hp to kW”?

      There are no “mechanical hp” in engineering? Where do you got this expression from?

      Like or Dislike: Thumb up 1 Thumb down 1
  • RM4,503 per year for a Volvo XC40 plus 86 sen / kWh (30 percent higher) is still ok for a toy for the rich?
    Somewhere this country have to get money from to run.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Nurul Izzah on May 18, 2023 at 8:11 pm

    Tax the rich, help the poor.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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