Tax incentives not enough to boost EV adoption: MCA

Tax incentives not enough to boost EV adoption: MCA

Tax incentives applied to zero-emissions vehicles in Malaysia are insufficient in encouraging Malaysians in taking up ownership of electric vehicles, said MCA vice president Wee Jeck Seng, reported Malaysiakini. According to the party’s VP, the government needs to take more proactive steps in creating a comprehensive electric vehicle ecosystem.

These steps include the preparation of sufficient EV charging stations, reasonable charging rates, as well as improvements to the existing infrastructure, Wee said.

“Support policies and incentives should also be offered to encourage more charging station installations at petrol stations, shopping centres, condominiums, and public places to expand access for EV drivers. This is because the lack of charging facilities and the high prices of EVs are among the factors that influence consumers’ decisions towards purchasing EVs,” he said.

Tax incentives not enough to boost EV adoption: MCA

The remarks come after transport minister Anthony Loke unveiled the new road tax structure for electric vehicles this week, bringing rates that are up to 89% lower than before, or 85% lower on average.

As all Malaysia-registered EVs are exempt from road tax until December 31, 2025, the change comes on January 1, 2026, when the kilowatt-based road tax structure will take effect, albeit revised from before. How much road tax will you be paying for your EV, come 2026? Read on, here.

The new road tax structure for electric vehicles in Malaysia was initially scheduled for announcement in April, though this has now revealed rates that are lower than first determined in 2019. These rates are cheaper than those for internal combustion engined vehicles, which is in line with the government’s policy on providing incentives to encourage the use of EVs, the transport minister said.

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Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • Maha kaya on Jun 06, 2024 at 6:56 pm

    I don’t like MCA but I agree with them this time. Can the gomen give us subsidi api? You wanna targeted subsidi minyak you target la but please jaga hati T20 too. Our votes not valuable to you, PMX?

    Like or Dislike: Thumb up 7 Thumb down 2
  • Tiber… MCA suddenly interested in EV adoption in MY. Finding new things to fuss about.

    Like or Dislike: Thumb up 11 Thumb down 1
  • Car USerTOP on Jun 06, 2024 at 7:42 pm

    Wake Up ….MCA. It is NOT the incentive for EV chargers which increase EV adoption. BUT …. PRICE . Govn should NOT have CAP the “Sales Price ABOVE RM100k” for EV sold here. There are MANY Chinese EV at RM 40k to Rm 60K selling in China . Plus Petrol are HEAVILY SUBSIDIZED ( Rm 50 Billion in 2023 ?) …. No Incentive to Switch to EV or Hybrid.If Govn Give Incentives like Scraping of ICE cars above 12 years old …. Many ICE will switch to EV/Hybrid.

    Like or Dislike: Thumb up 2 Thumb down 2
  • Talk only u know Wee. During your time nothing was ever done, u took salary blindly!

    Like or Dislike: Thumb up 8 Thumb down 2
  • Gelak kan on Jun 06, 2024 at 8:30 pm

    Mahresia Car Association?

    Like or Dislike: Thumb up 5 Thumb down 0
  • paanjang16 on Jun 06, 2024 at 10:01 pm

    How much tax incentive can they government give? Already give tax-free to import EV car already. Road tax also is pittance compared to the overall cost of the car. Best is ZERO road tax for EVs but that would make all the current ICE owners pissed.

    But the 100k limit must go and allow anyone to bring in EV. Then let the market decide. P1 under Geely and P2 under Daihatsu is not really a national car anymore and don’t need protection. Both are mature and old enough to take on the EV wave.

    Government can only give guidelines for new projects in the DO (Development Order) or BP (Building Plan) but they cannot force any existing development to put in EV charger. Existing buildings might not have the infra to support the installation of EV chargers. Give tax rebate for JMB to install electric charger also might not be enough since it may involve the upstream and TNB sub-station side. TNB later say not enough juice/please pay high contribution/need new 11kV SSU/need to upgrade to 33kV then what can a JMB do? And no one wants to deal with Bomba and do something that affect the renewal of the fire cert.

    Like or Dislike: Thumb up 4 Thumb down 1
    • taxman on Jun 07, 2024 at 2:58 pm

      Does it really mean that all EVs are tax-free? If they are, why is the price at Langkawi still a lot different?

      Like or Dislike: Thumb up 0 Thumb down 0
  • BEV adoption asap on Jun 06, 2024 at 10:35 pm

    Well done restructuring EV road tax, but BEV in Malaysia still rm100k and above, so many still can’t afford.

    Like or Dislike: Thumb up 4 Thumb down 0
  • I don’t understand the obsession with getting more and more people to adopt EVs. Even in developed countries like US and Australia, EV adoption has hit critical mass as early adopters are happily driving EVs while the rest are not ready to switch. Why force the switch when not everyone’s ready to do so?

    Like or Dislike: Thumb up 4 Thumb down 1
  • kenny lim on Jun 07, 2024 at 7:48 am

    also, the minimum selling price of RM100k for an imported EV. Please remove the protectionist (aka tongkat) policy to protect the local car industry, it is time to remove it and let them compete with other big boys. If you cant compete, please buck off.

    Like or Dislike: Thumb up 2 Thumb down 0
  • cari makan on Jun 07, 2024 at 8:07 am

    Rakyat nak cari makan harian punya susah , ko sibuk pasal hal T10 ni

    Like or Dislike: Thumb up 2 Thumb down 0
  • newme on Jun 07, 2024 at 8:38 am

    I am not a fan of EV but this political party is a dung stirrer that cannot get over its loses.

    Like or Dislike: Thumb up 1 Thumb down 0
  • You forgot to mention the battery cost, technician’s capability to repair EVs, resale value, battery disposal cost (of which customer have to bare), hazard such as fire, and lots more. For ICE car, if battery dies, can always jump start or replace the battery on the spot. Batteries on EV are dangerous if short circuit. And to serve loan to purchase new EV for B40 and M40 is not suitable based on the current economy. Even charging at home will be costly for most people as tariff is expensive in Malaysia. Govt should have subsidized at least 50% of solar panels and its battery so that this drives people to buy EV due to free energy. Want to wait for other people to charge their car in public areas is simply not sustainable at all.

    Like or Dislike: Thumb up 3 Thumb down 0
  • ICE Drive on Jun 07, 2024 at 9:37 am

    i call it B…$. cost to replace battery minimum RM30k for full EV. u average everything15 sen to 20 sen per KM which is around same as ICE Engine. oh ya dont forget EV car is heavy, u will need to change ur tyre at least 6 month earlier than ICE engine.

    Like or Dislike: Thumb up 2 Thumb down 1
  • Fuel subsidies rationalization will.

    Like or Dislike: Thumb up 0 Thumb down 0
  • alibaba on Jun 07, 2024 at 12:27 pm

    reducing tax by importing vehicle itself, but extra tax from vehicle’s electrical items (300% tax)

    Like or Dislike: Thumb up 0 Thumb down 0
  • Think current price above 100K protection for local EV car brand soon

    Like or Dislike: Thumb up 0 Thumb down 0
  • talk cock on Jun 07, 2024 at 11:03 pm

    those who want to buy ev dont look at road tax la ….

    pocket and mental must be ready when buy ev….pocket ready to absorb all loss if wanna sell and mental must be ready to accept it including issues, etc…..else no point buying and then complain….

    Like or Dislike: Thumb up 1 Thumb down 0
  • Pro-Palestine on Jun 08, 2024 at 9:06 am

    Many people still not buying because of your stupid rm100k cap. Kita bukan negara kaya

    Like or Dislike: Thumb up 0 Thumb down 0
  • john is otak batu on Jun 10, 2024 at 10:02 am

    Should give incentive like
    1)Toll free
    2)Ferry transport discount
    3)Free municipal parking

    Like or Dislike: Thumb up 0 Thumb down 0
 

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