New EV road tax structure will come into effect in Malaysia from 2026 – to be revealed by end of 2023

New EV road tax structure will come into effect in Malaysia from 2026 – to be revealed by end of 2023

The government will only put into a effect a new road tax structure for electric vehicles (EVs) after the current road tax exemption period for EVs ends, revealed transport minister Anthony Loke. In a report by The Star, Loke said this was to ensure EV users are not unnecessarily burdened.

“In 2022, the finance ministry provided a three-year road tax exemption to EV users, which will end in 2025, but many people (EV users) are worried that road tax charges will be very high once this (exemption) ends. We did a study on the road tax (charges), and we have tabled it to the EV task force for a more affordable tax,” Loke said.

“We will announce the road tax structure before the end of the year, which will only come into effect after the tax exemption period ends in 2025 unless the finance ministry wants to extend it,” he continued.

New EV road tax structure will come into effect in Malaysia from 2026 – to be revealed by end of 2023

Road tax for EVs in Malaysia – click to enlarge

The road tax exemption for EVs (as well as hydrogen fuel cell vehicles) was announced back in 2022 and is currently in place from January 1, 2022 until December 31, 2025. The present road tax structure for EVs follows a kilowatt-based system, which means you pay more the more powerful your EV – find out more here and calculate for yourself using the CarBase.my EV road tax calculator.

Loke said the government wants to ensure the new EV road tax charges will be competitive and not burdensome to encourage more people to make the switch to EVs. “There are fewer than 10,000 EVs on the road nationwide. It’s not easy to shift from conventional (vehicles) to EVs. We want to encourage more people to use EVs, but we need a proper ecosystem to make this happen, such as having more charging stations. All this requires time and continuous efforts,” he said.

In addition to the road tax exemption, EVs in Malaysia also benefit from import duty and excise duty exemption. This is until December 31, 2025 for fully-imported (CBU) models, while it is until December 31, 2027 for locally-assembled (CKD) EVs. However, CBU EVs with a floor price under RM100,000 cannot be sold in Malaysia until the end of the exemption period, so there’s still a price barrier that limits those on a budget looking to make the switch.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard's strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Farhan Fozian on Nov 07, 2023 at 10:09 am

    how much is Tesla roadtax?

    Like or Dislike: Thumb up 5 Thumb down 4
    • Worried PN sapoter on Nov 07, 2023 at 12:41 pm

      Zero roadtax. Baik beli skrg tacod nnt terlambat,

      Like or Dislike: Thumb up 3 Thumb down 2
    • Contradiction on Nov 08, 2023 at 11:47 am

      PH gomen tax the poor and subsidise the rich

      Like or Dislike: Thumb up 5 Thumb down 8
      • Poor previously on Nov 09, 2023 at 6:13 pm

        One can only blame himself for being poor. Ask yourself if you study hard in your school days?

        Like or Dislike: Thumb up 5 Thumb down 2
  • zulkarim on Nov 07, 2023 at 10:12 am

    well you want to promote EV but then charge a hefty amount of money for the roadtax is just absurd. Better just don’t promote EV ever if this the final numbers. What’s the logic behind these roadtax price? I understand you charge by the kilowatt but how it is not be burdensome for the users? Coz just look at the roads in Malaysia it doesn’t reflect a good maintenance. The Highways maybe but the other roads? Hermmm…

    Like or Dislike: Thumb up 33 Thumb down 2
  • Kosumaledoko on Nov 07, 2023 at 10:20 am

    Interesting… The road tax is based on standard output of a NA ICE engine. Nissan Leaf 150ps is about the output of a 2 liter 4 cylinder, road tax around RM37X+. Renault Zoe Zen R110’s 105ps is about the output of at 1.5/1.6 4 cylinder, road tax RM90.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Dah Menang Semua on Nov 07, 2023 at 10:26 am

    Ade 8% luxury tax utk kereta >200K
    Ade Luxury roadtax utk EV >200K ke?

    Like or Dislike: Thumb up 4 Thumb down 0
    • Mike Tee on Nov 07, 2023 at 11:14 am

      E “Vehicle” = kereta. Sure why not?

      Tax EVs above a certain power (HP equivalent), to promote lower cost EV. Policy should be about widespread adoption of EV, which is the mass market.

      The optics of “rewarding” T1 is not a good one. So i5, i7, Model Y Performance, Taycan, EQS, etc all should pay higher roadtax, same as their ICE equivalent. Hell I even think they should pay some import tax, excise. It is only fair.

      It does not make sense that we can import a Rimac Nevera (if ada RHD) at 1,914hp/2,360nM with no tax and low road tax. That is not what the green initiative should be about.

      Like or Dislike: Thumb up 2 Thumb down 7
  • ROTI CANAI on Nov 07, 2023 at 11:01 am

    hope for the best

    Like or Dislike: Thumb up 4 Thumb down 0
  • I think the govt should standardize the road tax structure based on total output (hp or kW). Must be apple to apple, then only fair. Now we see cars generate higher hp by turbocharging it of hybrid system. A 1.5 Gr yaris has the same roadtax as a Myvi. Doesn’t even make sense at all.

    Like or Dislike: Thumb up 8 Thumb down 4
    • Roadtax by emissions output is more appropriate. Gomen should penalize and make money from polluters

      Like or Dislike: Thumb up 10 Thumb down 2
      • EVSan on Nov 09, 2023 at 12:52 pm

        The EV car pricing for now is way out of reached for many low to middle income earners,only the very rich can afford it.what about batteries if they
        just failed after one year of warranty.

        Like or Dislike: Thumb up 0 Thumb down 0
  • The gov should also give tax incentive to expensive restaurants and boutiques to promote good food and quality luxury goods.

    Like or Dislike: Thumb up 6 Thumb down 1
    • Amoeba on Nov 07, 2023 at 1:34 pm

      This guy should be the next PM! 1 vote for you!

      Like or Dislike: Thumb up 1 Thumb down 2
      • EVSan on Nov 09, 2023 at 1:59 pm

        The EV car pricing for now is way out of reached for many low to middle income earners,only the very rich can afford it.what about batteries if they
        just failed after one year of warranty.

        Like or Dislike: Thumb up 0 Thumb down 0
  • dong gor on Nov 07, 2023 at 12:21 pm

    look at the way they want money from increasing SST, removing subsidies, road tax by power, etc… the underlying problem is all the corruption and mis management la. Ringgit no value, ppl no job… in the end is ppl suffer. BODOH

    Like or Dislike: Thumb up 6 Thumb down 1
  • unknown on Nov 08, 2023 at 3:49 am

    our main source of electricity are from fossil fuel.

    imagine more ev vehicles more electricity are used and more fossil fuel are burned hence increase of carbon emissions.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Kennysim on Nov 09, 2023 at 9:17 am

    If u can afford a 100k car, the gov still need to sub thm? What logic

    Like or Dislike: Thumb up 0 Thumb down 0
 

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