Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz says that the Government has no plans to extend the battery electric vehicle (BEV) road tax exemption past 2025.
In a written parliamentary response to Tebrau MP Jimmy Puah Wee Tse, Zafrul states that the road tax exemption for EVs will end on December 31, 2025.
First proposed as part of Budget 2022, the road tax exemption took effect on January 1, 2022, as an incentive to the public to encourage the use of EVs.
Effective January 2026, the new EV Road Tax structure introduced by the Ministry of Transport (MOT) will be applied for all EV cars in Malaysia. The new road tax structure for EVs will calculate the rates based on the EV’s power output in kW, split into separate bands. The full breakdown of the new EV road tax structure can be found here.
Additionally, the MOT will review – and possibly revise – the road tax structure every five years.
RELATED: New 2026 EV Road Tax in Malaysia, from RM40 – here’s how it works
In the same response to the Tebrau MP, Zafrul says that Malaysia currently has 119,000 electric-powered vehicles (xEV – hybrid, plug-in hybrid, EV) registered as of December 2024. He also adds that Malaysia is still committed to having 10,000 EV charging facilities built by 2025, which will comprise 8,500 AC chargers and 1,500 DC fast chargers.
Separately, in response to Stampin MP Chong Chieng Jen, he states that the ministry is targeting an increase in the number of passenger and commercial xEVs on the road to 400,000 vehicles by 2030, based on 2023-2024 trends observed.
Zafrul also states that xEV sales in Malaysia increased by 30.4% in 2024 against the year before, further adding that the 46,239 vehicles sold made up of 5% of the total number of passenger vehicles registered.
READ: MITI says xEV sales in Malaysia increased by 30.4% in 2024 – 10k EV charger goal still on track
