Transport Minister Anthony Loke checking out how an EV is charged after launching the GWM Malaysia 4S service centre in Seremban.
SEREMBAN: Road tax charges for electric vehicles (EV) will be lower than normal cars if a proposal by the Transport Ministry is accepted by the government, says Anthony Loke.
The Transport Minister said this is to encourage more people to migrate to EV.
"Presently, those who drive EVs do not need to pay road tax but once the tax exemption policy ends in 2025, they will have to start paying.
"And according to a formula introduced by the ministry in 2011, the road tax for EV is much higher than that for ICE (internal combustion engine) or normal cars.
"My ministry will review that formula and make it lower and more competitive so that people will not hesitate to buy EVs," he said when met after opening GWM Malaysia 4S service centre here.
The current EV tax exemption was introduced under the previous government in 2022 and will last until December 2025.
Loke said he had forwarded the proposal to a special EV task force chaired by International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz during a meeting a few days ago.
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.
"So the proposal by the ministry is basically to support the EV industry," he said.
Loke said the ministry would come up with a new road tax structure for EVs and the road tax would be based on the vehicle’s wattage.
This, he said, was necessary as potential buyers need to know how much road tax they would be paying before they can invest in the EV.
Loke said an announcement on this would be made this year so potential buyers of EV vehicles could go ahead and buy them.
Separately, Loke said the ministry would also start issuing special registration plates for EV vehicles.
"The registration plate for such vehicles, including the e-plate, will start with EV. 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," he said, adding that this would probably be introduced next year.
Loke said all EVs, including motorcycles, will have to use the EV registration plate once the ruling is enforced.
In his speech earlier, GWM Malaysia managing director Mike Cui said the opening of the 4S service centre here was to cater those moving from cities to suburban areas.
The center will offer GWM's latest line-up of new energy vehicles and after sales service support which aligns with its commitment to support the government's efforts to become a carbon-neutral nation as early as 2050.
