Originally scheduled to be announced sometime in April, the government has finally revealed the new road tax structure for electric vehicles (EVs), with transport minister Anthony Loke unveiling the new rates earlier today.
There’s good news for EV owners, because as promised, the new EV road tax isn’t just lower than the current structure that was first determined in 2019, it is cheaper than that for internal combustion engine (ICE) vehicles (though not in the lowest part of the spectrum), very much aligned with the government’s policy on providing incentives to encourage the use of EVs, said Loke.
While all EVs registered in Malaysia presently do not pay road tax, given their exemption from this until end-2025, they will begin paying for it when the exemption period ends, with the new structure coming into effect on January 1, 2026.
The new EV road tax structure is still kilowatt (kW)-based and grouped in motor output power bands, with the ministry saying that is the most relevant manner to go about determining things during a special presentation on the matter for selected members of the press late last week.
However, the intent has been to make the new structure as simple and easily understood as possible. As you can see in the slide tables, the new rates are significantly cheaper than that defined currently, with up to an 89% reduction (on average, 85%) in rates from the previously assigned ones, which are of course not being paid at the moment.
Under the new structure, each power band has its fees arranged in set blocks, with each 9,999 watt (or 9.99 kW) block adding on a set increment in each power band (as denoted in very general terms in the table above, for a more detailed breakdown, see the table at the end of the story). The new fees start at RM20 at the very lowest tier, from 1 watt to 10 kW, but this will never be applied given the output of EVs.
At the highest point of the up-to-100,000 watt (100 kW) band, the rate increases by RM10 for every higher block of output, capping at RM70 at 100 kW. From the 100,001 watt to 210,000 watt (210 kW) band, road tax prices vary from RM80 to RM280, with a RM20 increase per 9.99 kW block within the band.
From the 210,001 to 310,000 watt (310 kW) band, road tax fees range from RM305 to RM575, with the subsequent block increment in it being set at RM30. As for the 310,001 to 410,000 watt (410 kW) band, expect to pay anywhere from RM615 to RM1,065, with each 9.99 kW block increase set at RM50.
As such, with 100 kW, the Kona e-Lite will pay RM70 for its annual road tax when things kick off at the start of 2026, as opposed to RM243 under the replaced structure. The Ora Good Cat 400 Pro and 500 Ultra (105 kW), along with the Nissan Leaf (110 kW), will pay RM80, while owners of the BYD Dolphin Dynamic Standard Range, at 70 kW, will have to fork out RM40 a year for their road tax. Go with a Neta V that also packs 70 kW and it is also just RM40. Sounds very reasonable, no?
It is worth noting however that the government’s statement of EV road tax being cheaper than that for ICE vehicles only holds true running up the scale at this juncture, because at the very lowest end of the spectrum it really isn’t, until a passenger EV with an output of 50 kW or less shows up on the road in droves. Even then, it will be parity, as a 1.0 litre ICE vehicle pays only RM20 road tax per year.
Most premium EV offerings will also pay what should constitute very affordable rates for their road tax, with that for a Mercedes-Benz EQE 350+ being RM305 instead of RM2,779 on the old rate, and that for the BMW iX1 xDrive30 and xDrive40 at RM335 and RM365 respectively.
According to the ministry, Tesla Model Y and Model 3 Highland SR RWD owners will be paying RM305 and RM280, well under the nearly RM2.6k they would be paying if the structure was not revised. Elsewhere, those with vehicle models in the 300 kW output zone will have to dish out RM545 a year, surely preferable than the RM4,503 listed under the old structure.
As electric motor outputs climb, so do the rates, of course, and BYD Seal Performance buyers will need to plonk out RM965 a year (RM7,504 on the old rate), while Kia EV6 GT owners will pay RM1,240 (RM7,623 on the old structure).
About the only people who might (and this is a very big might, actually) feel any pinch would be Lotus Eletre R owners, who will be paying RM4,890 for their road tax annually. While the Taycan Turbo GT road tax as listed in the table is even higher, it should be a case of an erroneous kW input, as we were told by ministry officials that calculations are based on the nominal power output. With a 580 kW nominal output, the Taycan GT would pay RM3,065.
Some additional points gleaned during the announcement session at the transport ministry’s office in Putrajaya today. The new EV road tax structure will apply only to battery EVs and fuel-cell EVs (FCEVs), and rates will be applied in uniform fashion across the country, which means there is no price difference in the road tax for EVs registered say, in Sabah and Sarawak, compared to the peninsula.
Still on the matter of uniformity, the rates will be the same for individual and company/business registrations until further notice, said the ministry. According to Loke, the rates in the road tax structure will be reviewed every five years to ensure they are effective in achieving the objective of getting people to transition to zero-emissions vehicles.
Elsewhere, the rates for electric motorcycles remain unchanged, with the ministry saying that the existing rate of RM9 to RM42 for e-motorbikes is acceptably low enough. Also, persons with disabilities, whose road tax exemption was mentioned in Budget 2022, will also be exempted from paying road tax for one EV.
On the whole, the revised EV road tax structure should surely look a far sight better than the old one for most owners and those looking to adopt such vehicles. What do you think of the new EV road tax structure? Yay, or is there still some beef with the new rates? Share your thoughts with us in the comments section.
Here’s a detailed breakdown of the new road tax structure for EVs effective from January 1, 2026:
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Nail in the coffin
Nail in PH Gomen coffin
Great news and more than reasonable rates. Now just get those EV plates out and I’ll book a Tesla Model 3.
LOL ……
Reasonable
roadtax cheap is to entice dumb people to buy EVs.
Once purchased, the gov going to squeeze EV owners balls by higher insurance( EV fire risk is greater), higher charging rates, install stupdid apps to enable charging and steal your data via the apps and sell to advertisers
Continue crying la. EV owners are smiling while you are crying. Lol
feel the pinch…
So when they will change the ICE roadtax structure to engine output power as well??
Most probably not as this will hurt Proton & Perodua sales where their cars are currently enjoying cheap roadtax as most of their engines is below 1.6L capacity. Just look at the current roadtax structure for ICE cars, above 1.6L there is a massive jump.
Looking at current gen Civics’ and Accords’ 1.5L turbo, Peugeot 408’s 1.6L turbo. Your point being Malaysian roadtax structure is biased towards Proton & Perodua is invalid, bub.
ICE ada pollution mesti la tak ada discount. Guna otak la sikit. EV sekarang but lead batteri dulu. Sekarang ni semua full green and fully recyclable battery
Pls learn how is majority of TNB power is produced before you spew such lies. Our dirty coal fired power plants produce more toxic pollution to the environment than all the ICE cars they replace.
Exactly !!
It’s going down the drain anyway.
Meanwhile ICE B40 users will be heavily taxed once petrol subsidy is removed as threatened by PMX.
PH Gomen = Kaya didahulukan, marhaen diketepikan
Here is my proposal for car tax based on three factors:
1) Weight: Heavier vehicles cause more road wear and damage, so they should pay a higher tax. Penalty for EV and SUVs.
2) Emissions: Cleaner vehicles (electric, hybrid, lower emissions) should be taxed less. Discourage large cc, or diesel engines.
3) Safety Features: Cars with advanced driver-assistance systems (ADAS) should qualify for lower taxes.
Additional points to note:
Exemptions for fuel-efficient A-segment cars (Saga, Bezza, Axia) and lightweight trucks (Daihatsu GrandMax) to promote their use.
Annual inspections for both private and commercial vehicles to ensure roadworthiness and safety.
Surely our highly educated and well paid ministers can come up with something like this right?
…right?
Nope. Our formulamen came out with RM 1.50 petrol promise but now formula change to just taxing everyone but the rich kaw kaw
Not reallt cheaper that ICE, say 1.5cc Turbo car about same output torque as atto 3, atto 3 road tax is Rm160, but a 1.5cc turbo car sux road tax will be Rm120.00 if HRV lagi cheaper at Rm90.00. So is not entirely cheaper.. just not so expensive… compare to previously.
A 1.5 cc car will certainly not have the same output torque as a BYD Atto 3. In fact, it will hardly move.
Hahaha. I got both (actually 1.6 THP and Atto 3) and it’s not the same with instant torque.
A.I menang
T20 senang
Ok lar not 1.5cc is 1.5L typo typo, but if you look a 1.5L turbo engine ICE engine, they can generate about 300Nm torque like in Volvo XC40 PHEV 1.5L turbo have combined torque of more than 300Nm ( 425Nm ) yet it still a ICE car despite PHEV and road tax is according to ICE is Rm120.00. Compare to Atto 3 310NM torque, 150kwh road tax is Rm160.00 The 1.6 and 1.5L turbo engine nowadays can generate high torque with turbo alone or combine with motor. Another example Yaris GR Sport 1.6L 3 cyclider engine able to generate 360Nm… yet the car road tax is Rm90.00.
Opps sorry Yaris GR road tax is not Rm90
Really? But Yaris GR Roadtax and Volvo XC40 is very expensive than BYD Atto 3
Are you sure? Pls teaches us how to mod our kyosho nitro 1.5cc RC buggy to same output as atto 3?
overall ok but am more concerned in a few years time when technology advances further will this tax structure still be valid
Thank you Loke, now time to shop for EV.
Wooo rich people untung! Poor people in ICE pay more hahahah
PH Gomen = Kaya didahulukan, marhaen diketepikan
Eh shhhh this is one of the few policies to actually benefit T20, kek.
Poor people must be punish la. If not how country can improve. You lazy you get punished la simple. If I am Malaysia PM, I will reduce tax for high income earners and increase tax for the poor. I will make people very scared to be poor.
Poor people must be punish? That is what Marie Antoinette said before the Revolution! So what Malaysia needs now is a political revolution to throw out this bourgeois fat cat PH Gomen for a righteous rakyat didahulukan caring Gomen. Time to bring back pak Najib.
Nice!!
Much better! if you want to push for EV to reduce the subsidy burden on the government then this is that kind of rate to publish and not the previous rubbish! sales of EV from now till end of 2025 will sky rocket..conlanfirm.
Please update your calculator
Good job!
The main issue affecting the B40 and M40 is the 100k price tag for EVs.
Many M40 has dropped into upper rung B40..
Why punish us ICE owners with hefty car taxes,when we buy a lower end myvi,Axia or Ativa?
If Evs are priced Rm50 to 60K ,I dont mind trying Ev.
The price tag of current EVs is way way beyond the reach of many Msians.
Anthony,the undercover specialist..look into our plight…reduce the superhigh punitive car taxes for ICE cars.Chop some of the car taxes,u can recover the difference by selling more special syiok car number plates.
I m sure many of those in the leaque of Robert Kuoks and Teh hong Piows,will patronise your special syiok plates sales.
Ahlokekor…do the noble thing..not SYIOK thing.
This is basically to promote low end EV cars that runs in the city town use. For long distance you are better off using EV cars. Rich will continue to use the ICE bigger cc cars. Which of the luxury cars has actually stopped completely 2.5 or higher CC cars? ICE cars are proven engineering over the years. and moreover the rich doesn’t buy cars under individual income but under company accounts. Most of the Snr management will have car allowance or transportation package to cover the cost of ownership. EV is now targeted basically to the lower income people who uses small cars to for daily use. the ownership percentage of small cars are higher than the small car. So even with small capacity EV’s with less road tax, sale volume increases which has a ripple effect on the insurance (insurance companies), charging point service providers (TNB) and other related revenue options. The formulae is relatively old school – lower the price higher the volume of sales. we have too many cheap Chinese and local cars which needs sales to sustain.
Now, when will ICE road tax structure follow KW instead of Cc? Those small engined luxury cars have been “cheating” the system for the longest time. LOL
1.5 cc /= 1.5 L
:)
Yet the hybrid user don’t get anything instead of paying the same as ICE. What a joke.
Same goes to if a hybird car paying the same as EV, ICE will angry because they pay more. Come on la, for example bmw x5 hybird, 3.0turbo hybrid you expect it to pay according to the new EV structure?
Who said you need to pay according to the new EV structure? Loke should see this as well and revise accordingly. New Hybrid road tax structure for example.
Cheaper?
Chery Omoda 5 (1.5l Petrol) pays RM90 road tax
Chery E5 – 150kw output – RM 160 road tax
FYI
Omoda 5 (1.5 turbo petrol）115kw – RM90
Omoda E5 150Kw – RM160
so the electric one is more powerful.
If you have to argue, it is RM10 more expensive if comparing omoda 5 1.5turbo petrol rm 90 roadtax to 115kw RM 100 according to the new ev structure.
BYD Dolphin Standard’s power is 70kw. Not 130kw. JPJ may want to double check.
ICE folks no need butthurt lor, you can travel far far fill up petrol 5 mins only then jalan so that is ur benefit, we EV fellas gotta charge up longer so you win some you lose some lor…
Wow such privileged rich mentality, “if they cannot have bread let them eat cake”. No wonder you butthurt when rakyat complain this gomen is only catered for you rich farts. Is the gomen under PH a tyranny of the minority now?
According to the website, Tesla Model 3 (LR) power is 394hp, which is 293kw. How did JPJ got the 366kw figure.
This would mean the LR has more output than the new performance. Tesla reluctance to publish their figures means it is a guessing game for JPJ.
Check EV Database … TM3 SR – 208 kW, TM3 LR – 366 kW, TM3P – 461 kW
Tesla Malaysia own website says TM3P – 460 hp. If EV Database is really correct, then Tesla Malaysia don’t even know their own product specs.
you know the only unit that matters to them is how many grams of ketamine in terms of ringgit they can squeeze out of gullible malaysians
Read all the comments, and I have 1 issue. The govt is imposing roadtax based on kW and not torque. If you compare torque with the same kW output for both EV and ICE, of course lah the EV will be better. However, it still doesn’t make sense that the same kW Ev and ICE have different roadtax. By the look of things, ICE is still cheaper. If higher kW EV, then yeah probably cheaper than ICE. But if you want to reach to lower income to convert to EV, then might think twice. Still damn expensive. Looks like EV is for the rich. Also, ever wonder once the battery life is due, have to fork out more than 10% of the EV car cost. Still not worth it.
Let us all flood the already crowded roads with more cars.
Malaysian always happy when get candy.. lower EV structure tax.. next month TNB announce higher electric bill.. LMAO… DUMB DUMB
So does it mean that the new Tesla Model 3 Performance with 460hp = 343kW, the road tax would be RM765 ??
What Jensen said was correct, but happen in Msia; The more you buy, the more you save. It only just applies to the rich tho…
talk so much for what…those can afford the depreciation , dont mind the electricity charges and all the ev issues will buy…..
those not ready better stay with ice…
Finally..
My Atto 3 rate reduces from RM903 to RM160. Yay! But still more expensive from my Peugeot at RM90 (1.6L Turbo) :-(
Nice! Time to buy EV
Cukurrrrr rotek murah. Terima kasih kerajaan PH prihatin kat kami
Different vehicle models can have the same engine displacement but different weight. I think road tax should be based on vehicle weight. The more the vehicle weight, the more the tear and ware it make on road which result in higher road maintenance.
Early adopters will pay the price. Even with current electricity tariffs already expensive dy. Charging time too long for EV. Range anxiety.
This is one example politicians don’t make decision objectively. The main purpose of road tax is for road maintenance. EV is generally heavier than ICE vehicle which wear the roads faster. They should pay more road tax.
the objective is to spur the adoption of EV
Bestnya T10 dapat mega diskaun.