The Ministry of Transport (MOT) in Malaysia is taking significant steps to address concerns surrounding the road tax structure for electric vehicles (EVs), reports New Straits Times. Transport Minister Anthony Loke has recently announced that the ministry is diligently working on a new tax framework for EVs, as the previous government had only granted road tax exemptions for these vehicles until 2025.
With a focus on understanding consumer and industry feedback, the MOT aims to develop a fair and sustainable road tax system for EVs.
EV Road Tax Challenges
Anthony Loke acknowledged the general apprehension among consumers regarding the EV road tax structure. The current formula, similar to that used for internal combustion engine vehicles, calculates the tax based on the vehicle class and the maximum power generated by the electric motor. However, the results are not as straightforward as expected, leading to concerns about high costs.
According to official guidelines from the Road Transport Department (JPJ), a saloon-based EV producing over 150kW of power incurs a base rate tax of RM1,024, with an additional progressive rate of RM1.35 per 0.05kW. In comparison, a petrol-powered car generating 195hp is taxed at a mere RM90.
Tax Exemption Until 2025
Fortunately, EV owners can currently enjoy a tax exemption until 2025. This exemption provides some relief to the concerns surrounding the road tax structure. However, Loke emphasized the need for a revised system that would ensure fairness and sustainability in the long term.
Moreover, he has instructed the officers at the MOT to thoroughly study this matter. This will be done by taking account into valuable feedback from consumers and EV companies.
The Roadmap Ahead
Loke announced that the new EV road tax structure is set to be unveiled by the end of this year. The proposed tax framework will play a prominent role in the Ministry of Transport’s Budget 2024 proposals. With the aim of establishing a robust and comprehensive system, the MOT seeks to create a tax structure that aligns with the evolving EV landscape in Malaysia.
By addressing concerns and incorporating valuable insights, the government aims to strike a balance between revenue generation. Furthermore, this will encourage the adoption of sustainable transportation.
Collaboration with Sweden
In addition to developing an effective road tax structure, Malaysia is keen to collaborate with Sweden in advancing sustainable transport initiatives. Also, Loke expressed the country’s intention to leverage Sweden’s expertise in EV adoption, charging infrastructure, and smart traffic systems. By learning from Sweden’s best practices, Malaysia aims to expedite the transition to e-mobility.
Besides that, this collaboration represents a significant step towards building a sustainable and environmentally friendly transportation ecosystem in the country.
Malaysia Steps Towards The Future
As Malaysia embraces the transition towards electric mobility, the Ministry of Transport is actively working on a new road tax structure for electric vehicles. In addition, Loke’s commitment to incorporating consumer feedback and collaboration with Sweden showcases the government’s determination to create a fair and sustainable road tax framework.
With the expected unveiling of the new tax structure by the end of the year, Malaysia aims to pave the way for increased EV adoption. Also, establishing a greener and more sustainable transportation system.
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