EVs in Malaysia to Get Cheaper Road Tax Than ICE Cars

The Malaysian government is getting ready to take a variety of actions to make electric vehicles (EVs) more enticing for car buyers. This was revealed by the country’s transport minister Anthony Loke.

First is the road tax. In Malaysia, road tax on electric vehicles is currently exempt from payment from January 1, 2022, through December 31, 2025, but as of 2026, owners and potential buyers will have to pay according to a kilowatt-based system. The total power rating of the electric motor(s) determines the final road tax amount for an EV, with various power brackets determining the base rate and accompanying progressive rate (if applicable). To put it simply, the more energy the electric motor(s) produce, the more expensive the tax will be.

anthony loke

According to Loke, his ministry is aware that the existing calculation approach may deter prospective purchasers of EVs due to the high potential road tax costs. In order to encourage people to buy EVs even after the road tax holidays ends, he has directed the transport ministry to reassess the road tax system for EVs. While the minister didn’t reveal the specifics, Loke said it will be “very affordable and even cheaper than internal combustion engine cars.” He said:

“A high road tax for EVs was one of the reasons why many Malaysians were still cautious about investing in such vehicles. At present, there are only some 10,000 EVs on Malaysian roads including those by bigger brands. Since driving EVs has become the global trend, we need to prepare ourselves for this.”

Related: Tax Cuts Boost EV Sales in Indonesia

In addition to road tax, Loke stated that a new series of “EV” number plates will be issued for EVs in the upcoming months. The transport minister said these license plates will be “RFID-linked” and serve a safety function as well. In the event of an accident, emergency responders will be able to identify an “EV” plate and know that they are dealing with a vehicle that has a high-voltage powertrain that needs particular protocols to be handled safely. Loke went on to add:

“This is not for fun but to allow the authorities, especially the Fire and Rescue Services Department to immediately identify the car in the event of an accident. This is very important because in the event there is a fire, they cannot spray water to douse it.”

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