Malaysia Introduces New, Cheaper EV Road Tax Structure from 2026: As Low as RM40 per Year

The government has finally revealed the new road tax rules for electric vehicles (EVs), which were supposed to be announced in April. Transport Minister Anthony Loke announced the rates today.

This is good news for EV owners because the new road tax is not only cheaper than the previous one set in 2019 but also cheaper than what internal combustion engine (ICE) vehicle owners pay. Loke explained that this aligns with the government's goal of encouraging EV usage through incentives.

Right now, all EVs in Malaysia are exempt from paying road tax until the end of 2025. But once this period ends, they'll start paying under the new rules, which start on January 1, 2026.

The new EV road tax system still uses kilowatts (kW) to measure power and sorts vehicles into power bands. The ministry explained this choice during a recent presentation to select press members, saying it's the most relevant way to determine fees.

The goal was to create a straightforward road tax system are much cheaper than the current ones. They're organized into blocks based on power levels.

Each block, spanning 9,999 watts (or 9.99 kW), adds a fixed fee within its power range (as summarized in the table above). Fees start at RM20 for the lowest power range, from 1 watt to 10 kW, though this doesn't apply to actual EV outputs.

For vehicles in the 100,000-watt (100 kW) category, the rate increases by RM10 for every additional block of output, topping out at RM70 for 100 kW. In the 100,001 to 210,000-watt (210 kW) range, road tax prices vary from RM80 to RM280, with a RM20 increase for each 9.99 kW block.

Moving to the 210,001 to 310,000-watt (310 kW) category, road tax fees range from RM305 to RM575, with a subsequent block increase of RM30. For the 310,001 to 410,000-watt (410 kW) range, expect to pay between RM615 and RM1,065, with each 9.99 kW block increase costing RM50.

For instance, vehicles like the Kona e-Lite with 100 kW will pay RM70 annually for road tax starting 2026, compared to RM243 previously. Others like the Ora Good Cat 400 Pro and 500 Ultra (105 kW), as well as the Nissan Leaf (110 kW), will pay RM80. Owners of the BYD Dolphin Dynamic Standard Range (70 kW) and Neta V (70 kW) will only pay RM40 yearly.

Premium electric vehicle models will now have much cheaper road tax rates. For example, the Mercedes-Benz EQE 350+ will pay RM305 instead of RM2,779 previously, while the BMW iX1 xDrive30 and xDrive40 will pay RM335 and RM365 respectively.

Owners of Tesla Model Y and Model 3 Highland SR RWD will pay RM305 and RM280, far less than the nearly RM2.6k they would have paid without the new structure. For vehicles with 300 kW output, the annual road tax is RM545, much better than the RM4,503 under the old system.

As electric motor outputs go up, so do the rates. BYD Seal Performance buyers will pay RM965 annually (compared to RM7,504 previously), while Kia EV6 GT owners will pay RM1,240 (down from RM7,623 under the old structure).

Only a few Lotus Eletre R and Porsche Taycan Turbo GT owners might find the road tax a bit expensive, ranging from RM4,290 to RM6,715 annually. However, if you're opting for such high-performance vehicles, it's likely within your budget.

During the announcement session at the transport ministry's office in Putrajaya, it was clarified that the new EV road tax structure will only apply to battery EVs and fuel-cell EVs (FCEVs). Plus, the rates will be the same nationwide, so there won't be any differences in road tax prices between regions like Sabah, Sarawak, and the peninsula.

Both individual and company registrations will have the same rates until further notice, according to the ministry. Transport Minister Loke mentioned that the road tax rates will be reviewed every five years to ensure they continue to encourage people to switch to zero-emission vehicles.

The rates for electric motorcycles will remain the same, ranging from RM9 to RM42, as the ministry believes these rates are already low enough. People with disabilities, who were granted road tax exemption in Budget 2022, will also be exempted from paying road tax for one EV.

05 Jun 2024