The government will be announcing a new road tax (or Lesen Kenderaan Motor, LKM) structure for electric vehicles (EV) next month, that is said to be more competitively priced in a move to encourage EV adoption in Malaysia, Bernama reports.
This was announced by the Transportation Minister, Anthony Loke Siew Fook, at a press conference following the launch of the International Railway Symposium in Sepang earlier today.
Despite its planned announcement next month, Loke says that the new road tax structure will only be implemented after 2025, after the end of the tax exemption period for EVs. First announced in late 2021 as part of the national budget, EVs are currently fully exempt from all road tax, sales tax, import duty, and excise duty.
Loke says that the new “more competitive” EV road tax structure, proposed jointly between the Ministry of Transport and the National EV Task Force, is made in response to the growing concerns among EV vehicle owners, who are worried about being subjected to higher road tax after the end of the exemption period.
The minister previously said that the new EV road tax will be cheaper than that of a comparable petrol-powered vehicle.
“The encouragement is needed so that people start to accept the use of EVs, at the same time the EV ecosystem also needs to be implemented and developed, including charging infrastructure and so on. That is one of the things we are taking action on, as a comprehensive government approach,” he said.
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