LOKE : New EV Road Tax Structure Will Be Announced In December 2023

In order to encourage the use of electric vehicles (EVs), the government will introduce a more attractive road tax structure known as the Vehicle Licence (LKM) next month (December 2023) according to Transport Minister Anthony Loke Siew Fook.

According to Loke, the existing road tax exemption period for electric vehicles (EVs) will end in 2025, at which point the new road tax system will take effect. He further acknowledged that when the exemption period expires, EV owners fear they may have to pay greater road taxes.

He also added that the EV Special Task Force has been presented with a more competitive road tax structure by his ministry.

According to Loke, "The public's acceptance of EV use depends on this encouragement, and the development and implementation of the full ecosystem, including the infrastructure for charging EVs. This is a component of the all-encompassing strategy the government is working on."

The Road Transport Department (JPJ) had announced on February 15, 2022, that EVs will be completely exempt from road tax starting 1st January 2022 till 31st December 2025. However, this exemption does not apply to hybrid vehicles.

The EV communities are closely monitoring this newly reevaluated road tax structure; in fact, many are waiting for its announcement before jumping on the continually expanding EV bandwagon.

To put things in perspective, based on the image above BYD Atto 3 SUV which is one of the best selling EV in Malaysia which packs a 150kW motor would be charged a road tax fee of RM903 based on the current calculation. On the flipside, road tax for any ICE SUV with a 2-litre engine that produces 150kW (201HP) would only be RM440, while a modern more efficient 1.6-liter turbocharged SUV of equivalent output would only be subject to a road tax fee of RM120.

Source: BERNAMA