The transport ministry is nearing the completion of its review of a revised road tax framework for electric vehicles (EVs), with an official announcement anticipated by the conclusion of April 2024. This was revealed by its minister Anthony Loke during a Memorandum of Understanding (MoU) signing between Warisan Tan Chong Automotif and Guangzhou Automotive Group on Saturday, Bernama reports.
The decision for the review is to establish EV road taxes at rates lower than those for internal combustion engine (ICE) vehicles, he added. The move is also intended to stimulate greater adoption of EVs across the country.
Loke highlighted a key challenge in the review process, which revolves around the comparison of engine capacities between ICE and fully electric vehicles. Presently, EV owners benefit from a tax exemption, yet concerns persist among potential buyers that EV road taxes may surpass those of ICE vehicles once the period ends.
“The commitment of the government is to reduce (road tax) so that those who purchase EVs will enjoy an appropriate road tax fee,” he said. “We hope an announcement on road tax for EVs can be made before the end of April.”
The existing road tax exemption for EVs, introduced in 2022 and applicable until 31 December 2025, operates on a kilowatt-based calculation system. Unlike ICE vehicles, where road tax hinges on engine capacity, EV road tax is determined by the total power rating of its electric motor(s), with various power brackets dictating the base rate and any accompanying progressive rates.
(Source: Bernama)
Follow us on Instagram, Facebook, Twitter or Telegram for more updates and breaking news.
