MOT revising EV road tax for Malaysia, current rates too expensive



The Ministry of Transport (MOT) is currently working on a new road tax structure for electric vehicles (EV) in Malaysia, according to transport minister Anthony Loke. This new structure is scheduled to be unveiled by the end of this year, 2023, and will also be featured prominently in the MOT’s Budget 2024 proposals, reported Bernama.

“Consumers are generally concerned about the EV road tax structure because if based on the old formula, the cost impact is high and can reach RM4,000 to RM5,000 a year,” said Loke after attending the Green Mobility and Transport Forum in Cheras on May 16, 2023.

The transport minister also added, “I have directed officers at MOT to study this matter based on feedback from consumers and companies providing EVs. This is part of our efforts to encourage users to switch to this type of vehicles.”

This new EV road tax structure is an important one for Malaysia, according to Loke, as the previous government had given road tax exemptions for EVs which will expire by the year 2025. EV usage policies should be clear in order to facilitate efforts to migrate to a more sustainable transport mode, said the transport minister.

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For context, road tax for EVs in Malaysia is calculated by the power output of the electric motor, using the Kilo Watts (kW) unit. Below is a breakdown of how road tax for EVs with rated outputs of 80 kW and above is calculated:

Above 80 kW to 90 kW

RM160, and RM0.32 for every 0.05 kW (50 watt) increase from 80 kW

Above 90 kW to 100 kW

RM224, and RM0.25 for every 0.05 kW (50 watt) increase from 90 kW

Above 100 kW to 125 kW

RM274, and RM0.50 for every 0.05 kW (50 watt) increase from 100 kW

Above 125 kW to 150 kW

RM524, and RM1.00 for every 0.05 kW (50 watt) increase from 125 kW

Above 150 kW

RM1,024, and RM1.35 for every 0.05 kW (50 watt) increase from 150 kW.

So let’s say you are looking into purchasing a BYD Atto 3, which electric motor produces a total output of 150 kW. Based on the calculation method mentioned above, you will be paying RM524 + RM500, which totals up to RM1,024 of road tax for the Atto 3.

The MOT has been looking at the adoption of the sustainable mobility concept for land vehicles. However, Loke mentioned that the ministry will also be looking to adopt sustainable mobility concepts for air and maritime transports as well.

“The concept of using sustainable fuels has also become a choice in the aviation sector, and this matter has gained the attention of the MOT, especially at LIMA 2023 (Langkawi International Maritime and Aerospace Exhibition 2023),” said Loke.

Malaysia will continue to work with Sweden to enable both nations to learn and cooperate on initiatives that promote sustainable transport modes. This was mentioned by Loke during his keynote address at the forum.

“We can leverage Sweden’s best practices and expertise in EV adoption, charging infrastructure, and smart traffic systems, among others, to accelerate the transition to e-mobility in Malaysia,” said Loke.

“I believe that cooperation is key to solving this challenge, and I am glad to see that our two nations are strengthening our relations within the transport sector, particularly in the green transition, in addition to our previous partnership in road safety,” he added.

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