Zafrul: No Extension for EV Road Tax Holiday

Electrified vehicle (xEV) sales in Malaysia surged by 30.4% last year, reaching 46,239 units with battery electric vehicle (BEV) sales seeing the biggest jump, having sold 38,369 units as of 2024. This was revealed by MITI Minister YB Tengku Datuk Seri Zafrul Aziz in a written parliamentary reply to Tan Jimmy Puah (Tebrau).

In the same statement, Tengku Zafrul confirmed that the EV road tax exemption, currently in place for all EV users, will end on Dec 31, 2025. Starting Jan 1, 2026, EV owners will need to pay road tax upon renewal. He also stated that there are no plans to extend the exemption further.

Despite this, the new EV road tax structure, announced by Transport Minister Anthony Loke in June last year, are considered favorable. The revised structure offers a reduction of about 85% compared to the pre-exemption rates, making it more affordable for EV owners.

Loke also mentioned that the new EV road tax rates will be reviewed at least every five years. This periodic evaluation aims to ensure that the fee structure continues to promote EV adoption while also considering government revenue needs.

The road tax rates will continue to be based on electric motor power, similar to the previous structure. However, adjustments have been made to ensure a fair and proportionate tax system across different EV models.

For example, under the new structure, the BYD Dolphin, which has a 150kW motor, will only be charged RM160 in road tax. This is significantly lower than the RM903 it would have been charged under the old rates.

By implementing a more balanced tax system, the government hopes to encourage EV adoption while maintaining fiscal responsibility. 

Attached below is the complete list of EVs available in Malaysia and its corresponding new road tax rates (DOWNLOAD).