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Road Tax for Electric Vehicles (EVs) in Malaysia for 2026

Electric-Vehicles

The Transport Ministry of Malaysia (MOT) is currently working on creating a road tax structure for users of electric vehicles (EVs) which will take effect in 2026. The Transport Minister, Loke Anthony, has announced that a new, diligent road tax framework is being developed for EV users.

Unlike conventional vehicles, the previous road tax structure which was based on engine capacity, this model does not apply to electric vehicles. As such, the transport ministry has designed a new schedule for these special vehicles to ensure a fair and appropriate road tax structure.

Exemption for Electric Vehicles (EVs)

The previous government’s full exemption for EV users in road tax is due to expire in 2025. This has led to many people wanting to know about the new road tax structure for EVs. This exemption is just made to encourage EV customers to purchase it for the sake of green and environment-friendly transportation. 

Future changes 

The Transport Ministry of Malaysia tends to know the plans for electric vehicles. It works on the revising of road tax for (EVs) which will be implemented after 2025 when the exemption will expire. 

The transport ministry revised the following concerns to establish the appropriate road tax structure for EV users. 

The current road tax system

The current tax system is based on the engine capacity. The road tax is calculated according to the vehicle cc. Every vehicle is specially designed and categorised according to the engine capacity. However, this conventional method does not apply to electric vehicles. There is a need to revise the road tax structure map.

Conventional road tax systems expensive

The old system to calculate the road tax for vehicles is too expensive for eclectic vehicles. The ministry revised it to make it economical for the (EVs) users. the cost impact is high and can reach RM4,000 to RM5,000 a year. And this is not manageable for any EV users. It is essential to revise this system.

New wattage system

  The transport ministry designed a new road tax structure for EVs which is based on the vehicle’s wattage. For internal combustion engine (ICE) vehicles the engine size and power output are denoted by cubic centimetres (cc) or litres (L). 

However, the engine size and power of the electric vehicles are denoted by kilowatt (KW) or horsepower (hp). Which is mentioned on the engine because it is the eclectic motor.

Here are some eclectic vehicles and their power output 

Electric VehiclePower Output
Tesla Model 3283 kW (380 hp) or 480 kW (647 hp)
Tesla Model S368 kW (495 hp) or 670 kW (891 hp)
Ford Mustang Mach-E266 kW (355 hp) or 480 kW (647 hp)
Chevrolet Bolt EV150 kW (200 hp)
Nissan Leaf110 kW (148 hp)
Hyundai Kona Electric150 kW (201 hp) or 239 kW (325 hp)
Kia Niro EV150 kW (201 hp) or 201 kW (270 hp)
Audi e-tron204 kW (276 hp) or 300 kW (402 hp)
BMW iX240 kW (322 hp) or 480 kW (644 hp)
Porsche Taycan240 kW (321 hp) or 560 kW (751 hp)

EVs with low wattage (less power) are bound to pay low road tax as compared to conventional cars. On the flip side EVs with high wattage progressively have high road tax to fairly maintenance the road. 

Electric Vehicles

Benefits of these concerns

The new tax map for the eclectic vehicles has a lot of perks which is beneficial for the users and transport agencies as well.  

Encourage to purchase EVs

This initiative has been taken to encourage people to buy electronic vehicles. So that the conventional cars could be replaced. The exemption for EV users was made to encourage the potential users of electric convinces. 

Green mobility 

This footstep towards green mobility has become more beneficial to overcome internal combustion engine cars which produce pollution that is the cause of serious diseases among the people. It is reported that every year there are a lot of cancer and neurological disease cases the reason behind these diseases is just the the smoke that is produced and released by the the combustion engines. and that footstep encourages to adopt the EVs.  

Fairness

After establishing a new road tax system ensure that every vehicle is paying road tax and participate in the maintenance of the road according to their uses and potential impact on the road. 

Safety purposes

The Special Task Force of the Transport Ministry (MOT) is designed to take reliable footstep for the EVs users. The transport minister loke also says that making a special registration number for electric vehicles is mainly different from conventional vehicles for safety and security purposes.

Sudden happening

In case of any sudden happening the task force has the command to treat the EVs specially. In case of accidents, for example, the way EVs should be handled is different from other vehicles. If there is a fire, the EVs cannot be sprayed with water alone. The firing squad must have standard operating procedures (for EVs).

A collaborative initiative with Sweden

Malaysian transport agency collaborates with Sweden’s transport ministry to develop a sustainable and adaptable EV system. Sweden has one of the most advanced transport structures Loke expressed take footstep jointly with Sweden to establish a proper infrastructure of EV road tax and charging system to promote the advanced mobility system.

The transport minister Loke Anthony also said that we are looking towards advanced transportation systems such as Sweden this initiative was taken to make SOPs for EV users. 

Problem regarding the EV road tax system

Anthony Loke understands the general apprehension among consumers regarding the EV road tax structure. The old formula, similar to that used for internal combustion engine vehicles, calculates the tax based on the vehicle class and the maximum power generated by the electric motor. However, the results are not as same as expected, leading to concerns about high costs.

According to official guidelines from the Road Transport Department, a saloon-based EV producing over 150kW of power incurs a base rate tax of RM1,024, with an additional progressive rate of RM1.35 per 0.05kW. In comparison, a petrol-powered car generating 195hp is taxed at a mere RM90. That is complicated for EV users to understand which is why the official ministry produced a new road tax system for electric vehicles. 

The road tax for EVs in Malaysia (after 2025)

The exemption of the road tax for electric vehicles will be as follows. Which is applicable after 2025. This system will be endorsed in the country after 2025.

Sedan Cars (Private & Company Owned)

Motor WattageRoad Tax (RM)
Less than 50 kW20
50 kW to 60 kW44
60 kW to 70 kW56
70 kW to 80 kW72

SUV Cars (Private & Company Owned)

Motor WattageRoad Tax (RM)
Less than 50 kW20
Above 50 kW to 60 kW42.50
Above 60 kW to 70 kW50
Above 70 kW to 80 kW60

Vehicles Above 80 kW (Progressive Rate)

Motor Wattage RangeBasic Rate (RM)Progressive Rate (RM per 0.05 kW increase)
100 kW to 125 kW243.000.44
125 kW to 150 kW463.000.88
Above 150 kW903.001.20

Note: This table provides an estimated general overview. Specific road tax amounts may vary depending on additional factors such as vehicle type (sedan vs SUV) and ownership category (private vs company).

It’s important to consult official sources or use online road tax calculators for the most accurate estimates for specific vehicles. Or visit the official site for more inquiries. JPJ.

Conclusion 

We have discussed briefly the advanced mobility regarding EV users. How you can estimate the road tax of your electric vehicle. If you are looking to adopt the EV this article is more informative for you.

We deeply discussed how this system was implemented in the country after 2025 because the previous system was too expensive for EV users. Also mentioned are the perks of this system.

FAQs

Below 80 kW: Fixed rates based on vehicle type and ownership.

Above 80 kW: Progressive rate based on motor wattage (higher wattage, higher tax).

For petrol & diesel cars, it’s calculated based on engine capacity (CC).

For EVs, it’s currently exempt (until 2025), and future rates are unknown.

There are currently no direct rebates offered for purchasing electric vehicles in Malaysia as of March 2, 2024. However, there are exemptions from import duty and excise duty for EVs, which effectively reduces their purchase price.

Currently, as of March 2, 2024, electric vehicles (EVs) in Malaysia are exempt from import duty and excise duty. This means there is no duty to be paid on EVs imported into the country.

Currently (March 2, 2024), all EVs in Malaysia, including Teslas, are exempt from road tax until December 31, 2025.

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