New road tax structure for electric vehicles in the works, says Loke

KUALA LUMPUR: The Transport Ministry is working on a new road tax structure for electric vehicles (EVs), said minister Anthony Loke.

He said the new structure was expected to be unveiled at the end of this year and would feature prominently in the ministry’s Budget 2024 proposals.

He said the new structure was essential because the previous government had given road tax exemption for EVs only until 2025.

"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.

"I have directed officers at the ministry 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,” he told reporters after attending the Green Mobility and Transport Forum in Cheras here today.

Loke said policies on EV usage should be clear to facilitate efforts to migrate to a more sustainable transport mode.

He said this was in line with the Low Carbon Mobility Blueprint targeting 15 per cent usage of EVs and hybrid vehicles this year and the provision of 10,000 units of charging facilities by 2025.


The ministry was not only looking at the adoption of the sustainable mobility concept for land vehicles but also for air and maritime transport, he said.

"The concept of using sustainable fuels has also become a choice in the aviation sector, and this matter has gained the ministry's attention, especially at LIMA 2023 (Langkawi International Maritime and Aerospace Exhibition 2023),” he added.

In his keynote address at the forum, Loke said Malaysia would continue to work together with Sweden to enable both countries to learn and cooperate on initiatives that promote sustainable transport modes.

"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.

"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 said.