The transport ministry is currently in the final stage of reviewing a new road tax structure for electric vehicles (EVs), with an announcement on the matter expected to take place before the end of April 2024.

As reported by Bernama, transport minister Anthony Loke said the decision to review the road tax structure is to make the road tax for EVs cheaper than internal combustion engine (ICE) vehicles, which would encourage more people to use EVs.

“The challenge faced in the process is the comparison of engine capacity of ICE vehicles and EVs. Currently, road tax for EVs is free but those who purchase EVs are worried that the road tax would be higher than ICE vehicles,” said Loke.

“The commitment of the government is to reduce (road tax) so that those who purchase EVs will enjoy an appropriate road tax fee. We hope an announcement on road tax for EVs can be made before the end of April,” he added.

The road tax exemption for EVs (as well as hydrogen fuel cell vehicles) was announced back in 2022 and is currently active from January 1, 2022 until December 31, 2025. Under the present and soon-to-be-replaced road tax structure for EVs, the fee is calculated following a kilowatt-based system.

Essentially, the more powerful your EV, the more road tax you’ll be paying. This is different from ICE vehicles which have their road tax calculated based on engine capacity. For EVs, the final road tax amount takes into account the total power rating of the electric motor(s), and there are different power brackets determining the base rate and accompanying progressive rate (if applicable).

We’ve covered this topic in the past and included a few examples for your reference. You can also use the EV road tax calculator on CarBase.my to see how much you’ll be paying for your preferred EV.

The new EV road tax structure will only come into effect after the current exemption period ends, which is until December 31, 2025, as revealed by Loke last November. “We will announce the road tax structure before the end of the year, which will only come into effect after the tax exemption period ends in 2025 unless the finance ministry wants to extend it,” he said at the time.

Looking to sell your car? Sell it with Carro.