Malaysia to announce new EV Road Tax structure soon - won't be as expensive as ICE vehicles?

“This decision underscores Malaysia's significance as a key destination for international expansion and highlights the country's attractiveness as a preferred market for automotive ventures. In line with our objective to reach net-zero greenhouse gas emissions by 2050, we encourage WTCA and GAC to introduce more product line-ups to Malaysia, especially EV, as part of our efforts to promote sustainable transportation and reduce carbon emissions," Loke remarked.

Concerns have emerged among EV owners and potential buyers regarding the current road tax exemption for electric vehicles. While the exemption exists now, there is apprehension that once the government introduces a new tax structure, the road tax for EVs could significantly exceed that of ICE vehicles.

This uncertainty has sparked a broader discussion on the future cost of owning an EV in Malaysia, emphasizing the need for a clear, fair road tax policy that continues to encourage the shift towards sustainable transportation.

Worldwide, the road tax for electric vehicles (EVs) compared to internal combustion engine (ICE) vehicles varies. Many countries initially offered lower taxes for EVs to promote their adoption.

However, as EVs become more common, some places are adjusting these benefits, potentially introducing new taxes for EVs to ensure they contribute to public infrastructure costs. The aim is to balance the fiscal responsibilities between EV and ICE owners, with the specifics depending on local policies and incentives.

It's not universally true that EV road taxes are higher than those for ICE vehicles, but trends are shifting towards equalizing costs between the two.

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