The Malaysian government does not plan to extend the exemption of road tax for battery-electric vehicles in Malaysia past its present end date of December 31, 2025, the minister of investment, trade and industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz has said in a written parliamentary reply to Tebrau member of parliament Jimmy Puah Wee Tse.
In June last year, the government announced the revised road tax structure for EVs which is based on the vehicle’s power outputs in kilowatts (kW) and grouped in bands; see our table of the new rates, here.
Perusing the numbers from the cheapest EV currently on sale in Malaysia, the Neta V at RM100,000 OTR without insurance, the compact model with a 70 kW output (95 PS/160 Nm) will have RM40 in road tax imposed. From national brand Proton is the eMas 7 with 160 kW (218 PS/320 Nm), which all but matches the MINI Cooper SE with 218 PS and 330 Nm, therefore both of these will get a road tax bill of RM180.
The bestselling EV of 2024 in Malaysia, the BYD Atto 3 with its 150 kW (204 PS/310 Nm) powertrain, is up for RM160 in road tax. Towards the top end of the road tax price table, the Lotus Eletre R with its 675 kW (918 PS/985 Nm) will be tagged with RM4,890 in road tax.
Meanwhile, the Malaysian Automotive Association (MAA) has said in January that the tax break for fully imported EVs currently in place needs to be extended to 2030 in order to meet the country’s target EV adoption rate of 15% of total sales volume by 2030.
“EVs are still at the infancy stage. There is a need for the government to nurture and support the growth of EVs, especially in terms of incentives. So, the government should consider expanding the present tax incentive, especially for CBU EVs. Our feeling or alignment is at least until 2030, basically in line with the aspiration of the government to meet the 15% EV objective,” MAA president Mohd Shamsor Mohd Zain said in January.
The road tax exemption for EVs is of course separate from the current exemption of import duty and excise duty for fully imported (CBU) EVs, which is in place until the same date, December 31, 2025, while those of locally assembled (CKD) EVs are in place until December 31, 2027. This exemption for EVs in Malaysia was first announced during the tabling of Budget 2022 in October 2021, and took effect at the start of 2022.
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Misleading article title
Yeah, it should say “for CBU”
The rich continues to get subsidy while the poor will have their petrol subsidy remove. In essence in PH Malaysia, the poor is subsidising the rich now. WTF!!!
Cukur all harm drool leelah our kapchai road tax very cheap, oops we didn’t even renew it
Well guess that will not be up to you isn’t it, but will be determined by the AP cronies since they can determine the safety of the car sold here (ahem 0 Star Neta V) and they can also set the cost as a protection mechanism as someone so protective.
I don’t think you guys plan anything to begin with. But I believe in Dec we will extend th exemption via u turn method.
Malaysia EV sales will drop. Those interested and capable already invest in this technology, good or bad they will judge themselves.
majority will stick to their axia myvi attiva alza or japs 1.5L or continental 1.5L turbo since ICE road tax cheaper than EV road tax. Continues spilling out NOX CO2
Watch sales of EV flop
Why does is lying such a rampant thing?
Just to cheat people into buying these EVs and extra ringgit in someone pockets.
There are so many regretful EV owners out there right now and some even went as far as having tonnes of gadgets installed at home.
Pity those who stays in condos especially.
Right that’s fine but if there’s no extension for the excuse duties then be prepared for zero EV sales next year.
Currently which EV is CKD?
Like what has happened in some 1st world countries, once the taxes got introduced to EVs, sales quickly nose dived