PUTRAJAYA, June 4 — Road taxes for zero-emission vehicles (ZEVs) or electric vehicles (EVs) are set based on the power of the electric motor, and will come into force on January 1, 2026, said Transport Minister Anthony Loke.
Loke said the new fee is 85 per cent lower than the existing rate, to encourage the people to switch to ZEVs.
He said all fee rates for ZEVs will be reviewed at least every five years to ensure effectiveness in achieving the objectives of the transition to ZEVs, as well as the impact on government revenue.
“The fee rate will increase in line with the increase in electric motor power. The increase in electric motor power will represent an increase in the purchase price, size, segment and weight of the vehicle.
“The new fee rate only applies to ZEVs in the PBEV (battery electric vehicle) and FCEV (fuel cell electric vehicle) categories,” he said at a press conference to announce the new tax rate for EVs here today.
In February 2022, the Road Transport Department announced the incentive of full road tax exemption for EVs from January 1, 2022, to December 31, 2025.
On March 30 that year, Loke reportedly said the government would announce the road tax rate for ZEVs in the near future and assured the fee would not be burdensome as the government wanted to encourage the use of ZEVs.
Regarding the block rate setting, Loke said it is set at a motor power range of 100,000W.
Loke said for example, block 1 is for ZEVs with electric motor power of 1-100,000W and block 2 is 100,001-210,000W.
He said the minimum road tax rate for block 1 is RM20 and the maximum is RM70.
“For block 3, the minimum fee rate is RM305 and the maximum fee rate is RM575,” he said.
Sharing a comparison of the ZEV road tax rate before and after the amendment, Loke said the BYD Dolphin Premium Standard Range vehicle, with a capacity of 130kW, will only be charged RM120 compared with the existing fee of RM624.
He said for the Tesla Model Y, with a capacity of 220kW, it is RM305, compared with the existing fee of RM2,583.
He said the government will gazette the road tax rate for ZEVs soon to make it easier for buyers.
Loke said the new rate gives a signal to ZEV manufacturers to make Malaysia a production hub.
— Bernama
