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Home»Automobile»No plans to increase EV road tax exemption past 2025
Automobile

No plans to increase EV road tax exemption past 2025

Mick ChanBy Mick ChanFebruary 26, 2025No Comments3 Mins Read
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The Malaysian government doesn’t plan to increase the exemption of road tax for battery-electric vehicles in Malaysia past its present end date of December 31, 2025, the minister of investment, trade and industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz has said in a written parliamentary reply to Tebrau member of parliament Jimmy Puah Wee Tse.

In June last 12 months, the federal government announced the revised road tax structure for EVs which relies on the vehicle’s power outputs in kilowatts (kW) and grouped in bands; see our table of the brand new rates, here.

Perusing the numbers from the most cost effective EV currently on sale in Malaysia, the Neta V at RM100,000 OTR without insurance, the compact model with a 70 kW output (95 PS/160 Nm) can have RM40 in road tax imposed. From national brand Proton is the eMas 7 with 160 kW (218 PS/320 Nm), which all but matches the MINI Cooper SE with 218 PS and 330 Nm, due to this fact each of those will get a road tax bill of RM180.

The bestselling EV of 2024 in Malaysia, the BYD Atto 3 with its 150 kW (204 PS/310 Nm) powertrain, is up for RM160 in road tax. Towards the highest end of the road tax price table, the Lotus Eletre R with its 675 kW (918 PS/985 Nm) will probably be tagged with RM4,890 in road tax.

2024_Neta_X_Launch_Malaysia_Ext-2

2025 Proton eMas 7 Premium_Ext-1

2024_BYD_Atto_3_ER_Malaysia-1

2023_Lotus_Eletre_S_Malaysia_Ext-4

Meanwhile, the Malaysian Automotive Association (MAA) has said in January that the tax break for fully imported EVs currently in place must be prolonged to 2030 with a purpose to meet the country’s goal EV adoption rate of 15% of total sales volume by 2030.

“EVs are still on the infancy stage. There may be a necessity for the federal government to nurture and support the expansion of EVs, especially by way of incentives. So, the federal government should consider expanding the current tax incentive, especially for CBU EVs. Our feeling or alignment is no less than until 2030, principally according to the aspiration of the federal government to satisfy the 15% EV objective,” MAA president Mohd Shamsor Mohd Zain said in January.

The road tax exemption for EVs is after all separate from the present exemption of import duty and excise duty for fully imported (CBU) EVs, which is in place until the identical date, December 31, 2025, while those of locally assembled (CKD) EVs are in place until December 31, 2027. This exemption for EVs in Malaysia was first announced through the tabling of Budget 2022 in October 2021, and took effect firstly of 2022.

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This Article First Appeared At paultan.org

exemption extend Plans Road tax
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