SEREMBAN: The road tax for electric vehicles (EVs) will be lower than that for their fossil fuel cousins if a proposal by the Transport Ministry is accepted by the government, says Anthony Loke.
The Transport Minister said this was to encourage more people to migrate to EVs.
“At present, those who drive EVs need not pay road tax but once the tax exemption policy ends in 2025, they will have to start paying.
“Going by a formula introduced by the ministry in 2011, the road tax for EVs is much higher than ICE (internal combustion engine) or normal cars.
“My ministry will review that formula and make it lower and more competitive so people will not hesitate to buy EVs,” he said after opening GWM Malaysia’s 4S service centre here yesterday.
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 Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz at 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 some 10,000 EVs on Malaysian roads.
“Driving an EV has become the global trend and we need to prepare ourselves for this, so the proposal by the Transport Ministry is basically to support the EV industry,” he added.
Loke said his ministry would come up with a new road tax structure based on an EV’s wattage.
He added that this would be necessary for EV buyers to know the amount of road tax they would need to pay.
An announcement on this would be made this year, he said.
Separately, Loke said his ministry would also start issuing special registration plates for EVs.
“The registration plate for such vehicles including the ‘eplate’ will start with EVs.
“This is not for fun but to allow the authorities, especially the Fire and Rescue Department, to immediately identify the car in the event of an accident.
“And if 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, would have to use the EV registration plate once the ruling was enforced.
In his speech earlier, GWM Malaysia managing director Mike Cui said the 4S service centre would cater to those moving from cities to suburban areas.
The centre will offer GWM’s latest line-up of new energy vehicles and after-sales service, which aligns with its commitment to support the government’s efforts to become a carbon-neutral nation by 2050.
