Government To Encourage EV Adoption By Revealing New Road Tax Structure In December

"Encouragement is needed for people to start embracing the use of EVs, and the ecosystem needs to be developed," said Transport Minister Anthony Loke.

Cover image via Vincent West/Reuters & Berita Harian

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The government will announce a new road tax or Motor Vehicle Licence (LKM) structure for electric vehicles (EV) next month in an effort to encourage more people to use the vehicles, said Transport Minister Anthony Loke Siew Fook

Speaking at a press conference after officiating the International Rail Symposium here today, Loke said, however, that the more competitive road tax structure will only take effect after 2025, after the end of the road tax exemption period for EVs as announced by the government last year.

Loke said the government was aware of EV vehicle owners' concerns about having to pay high road tax after the exemption period ended, and the Transport Ministry had also presented to the National EV Task Force to ensure that the new structure is more competitive.

"Encouragement is needed for people to start embracing the use of EVs, and the ecosystem needs to be developed, including (the installation of) EV charging stations.

"This is one of the measures we are taking as a whole government approach," he said.

Image via BusinessToday

On 15 February 2022, the Ministry of Transport, through the Road Transport Department, introduced the road tax exemption for EVs

It applied to battery and fuel cell (hydrogen) EVs but not hybrid vehicles and would be valid from 1 January 2022 to 31 December 2025.

Earlier in his speech at the event, Loke said the government envisioned the local rail industry players actively participating in the maintenance, repair, and overhaul (MRO) programme, enabling the extension of the operational lifespan of rail assets from 10 to 20 years currently to 30 to 40 years.

"Thereby positioning Malaysia as the regional rail MRO hub, fostering talent retention, and stimulating our economy," he said.

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