New EV road tax rate only after exemption period ends, says Loke

The Transport Minister, Anthony Loke, has stated that a new road tax structure for electric vehicles (EV) will be implemented after the current exemption period, to avoid burdening users unnecessarily. This comes after the Finance Ministry provided a three-year road tax exemption to EV users in 2022, which will end in 2025. However, concerns have been raised by EV users about the potential for high road tax charges once the exemption period ends. In response to this, a study on road tax charges has been conducted and the results have been presented to the EV Task Force with the aim of establishing a more affordable tax structure. The Minister has announced that the road tax structure will be made public before the end of the year and will only come into effect after the exemption period ends, unless the Finance Ministry decides to extend it.

Loke emphasized that the government wants to ensure that the new EV road tax charges will be competitive and not burdensome, in order to encourage more people to switch to EVs. Currently, there are less than 10,000 EVs on the road nationwide, making it a challenging transition from conventional vehicles. To facilitate this shift, the government recognizes the need for a supportive ecosystem, including an increase in the number of charging stations. Loke acknowledged that such efforts require time and continuous commitment.

In Budget 2022, the government introduced a road tax exemption for EVs powered by batteries or fuel cell (hydrogen) technology. This policy is in effect from January 1, 2022, until December 31, 2025.