Revised EV road tax structure to be announced at the end of 2023
The Malaysian government has revealed plans to announce a revised structure for road tax concerning electric vehicles (EVs) by the end of 2023.
Anthony Loke Siew Fook, the Minister of Transport, has set a timeline for ministry officials to develop a new road tax structure for EVs, which will replace the current system that’ll end in 2025.
According to Loke as reported by NST, “I have provided a timeline to the ministry officials regarding the road tax structure. My expectation is that it will be announced by the end of this year.”
“I have been informed by EV companies that consumers are worried about the road tax for their vehicles once 2025 has passed. If EVs continue to be subjected to the existing road tax calculation formula, the cost may range between RM4,000 to RM5,000. This would discourage more people from transitioning to EV cars,” added Loke.
Loke also mentioned his intention to discuss the matter further with the Ministry of Finance in exploring potential road tax structures and other incentives to promote EV adoption in Malaysia’s 2024 Budget.
The 2022 Budget Tabling introduced a road tax exemption for EVs, which applies to battery and fuel cell (hydrogen) EVs, excluding hybrid vehicles. This exemption has been valid from January 1 of last year and will continue until December 31, 2025.