Govt Devising New Road Tax Scheme For EV

The Ministry of Transport (MOT) is researching and drafting a new road tax structure for electric vehicles (EVs), said its Minister Anthony Loke.

He said the announcement of the new structure is expected to be announced at the end of this year, in addition to being given prime attention in the essence of the 2024 Budget for the ministry.

He said the new structuring of the vehicle road tax was important because the previous government only granted an exemption from the road tax for EVs until 2025.

“Average users are worried about the road tax structure for EVs because if we follow the old formula (EVs road tax) the cost impact is high and can reach RM4,000 to RM5,000 a year.

“I have instructed the officers at the MOT to look into this matter based on feedback from EVs providers and users. This is also our effort to encourage the transition to the use of the vehicle,” he told reporters after attending the Green Mobility and Transport Forum, here today.

Loke said the policy on the use of EVs needs to be clear so that efforts to switch to a more sustainable mode of transport can be made.

He said the effort was in line with the Low Carbon Mobility Development Plan which aims for the country to achieve 15 percent EV and hybrid vehicle usage this year with the provision of 10,000 units of charging facilities by 2025.

In addition, he said MOT does not only look at the application of the concept of sustainable mobility for land vehicles, but also for air and maritime transport.

“The concept of sustainable fuel use has also started to become an option in the field of aviation and this is also a matter of MOT’s attention, especially at LIMA 2023 (Langkawi International Maritime and Aerospace Exhibition 2023),” he said.

Meanwhile, in his keynote speech during the forum, Loke said Malaysia will continue to establish cooperation with Sweden to enable both countries to learn and cooperate in initiatives to promote sustainable modes of transport.

“We can take advantage of Sweden’s best practices and expertise in the use of EVs, charging infrastructure and smart traffic systems, among other things to accelerate the transition to e-mobility in Malaysia.

“I believe cooperation is the key to solving this challenge and I am happy to see both countries strengthen our relationship in the transport sector, especially in the green transition, in addition to the previous partnership in road safety,” he said.

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