Road tax on electric cars in Malaysia

As more and more EVs are entering the Malaysian market, potential EV buyers are concerned about the road tax imposed on them. Unlike traditional cars where tax is based on the engines’ cc displacement, the road transport department (JPJ) imposes the road tax rates on EVs (both cars and motorcycles) as per their motor kilowatt output.

In other words, road tax for electric vehicles in Malaysia is calculated by the power output of the electric motor. The unit, generally used for electric motor power is kiloWatts (kW) as the battery capacities of EVs are usually rated in kWh. So, what are the road tax prices for electric vehicles in Malaysia? Let’s check out.

Electric Saloon cars

For saloon cars producing an output of up to 80 kW, the road taxes are 

Output	Road tax
50 kW and below	RM 20
Above 50 kW to 60 kW	RM 44
Above 60 kW to 70 kW	RM 56
Above 70 kW to 80 kW	RM 72

But if the motor of the electric saloon generates more than 80 kW, things are quite complicated as the customers need to pay the base rate and a progressive rate (per 0.05 kW or 50 watts). Let’s check out in the following table -

Output	Base rate	Progressive rate (per 0.05 kW or 50 watts)
Above 80 kW to 90 kW	RM 160	RM 0.32 sen above 80 kW
Above 90 kW to 100 kW	RM 224	RM 0.25 sen above 90 kW
Above 100 kW to 125 kW	RM 274	RM 0.50 sen above 100 kW
Above 125 kW to 150 kW	RM 524	RM 1.00 above 125 kW
Above 150 kW	RM 1,024	RM 1.35 above 150 kW

Let’s take an example with the above values in mind. Suppose your electric saloon generates a maximum output of 110 kW, then you be paying a total road tax of RM 374 (RM 274 base tax and a progressive tax of RM 100).

Other electric cars

For other electric cars including hatchbacks, SUVs, pick-ups, coupes, and crossovers, and convertibles, JPJ levies different rates of road tax. For electric cars having output up to 80 kW, the road taxes are 

Output	Road tax
50 kW and below	RM 20
Above 50 kW to 60 kW	RM 42.50
Above 60 kW to 70 kW	RM 50
Above 70 kW to 80 kW	RM 60

The electric cars which produce more than 80 kW of output, the rates are - 

Output	Base rate	Progressive rate (per 0.05 kW or 50 watts)
Above 80 kW to 90 kW	RM 165	RM 0.17 sen above 80 kW
Above 90 kW to 100 kW	RM 199	RM 0.22 sen above 90 kW
Above 100 kW to 125 kW	RM 243	RM 0.44 sen above 100 kW
Above 125 kW to 150 kW	RM 463	RM 0.88 sen above 125 kW
Above 150 kW	RM 903	RM 1.20 above 150 kW

Electric motorbikes 

The road tax on electric motorcycles in Malaysia is fixed at RM 2 for vehicles having an output rating of 7.5 kW. Above 7.5 kW, the rate is calculated as per the following:

Output	Road tax
Above 7.5 kW to 10 kW	RM 9
Above 10 kW to 12.5 kW	RM 12
Above 12.5 kW to 25 kW	RM 30
Above 25 kW to 40 kW	RM 40
Above 40 kW	RM 42

EVs to be completely tax-free in Malaysia 

The electric vehicle market is set to grow in Malaysia and the local government officials are working toward making EVs exempt from taxes. Under the recently announced 2022 Budget, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz addressed electric cars’ importance in reducing pollutants and better air quality. He proposed several rebates on the purchase of electric vehicles, including

• 100% duty exemption for CBU electric cars up to 31st December 2023
• 100% duty exemption for CKD electric cars up to 31st December 2025
• 100% road tax exemption 
• Income tax relief of up to RM 2,500 on the cost of purchasing, installing, renting, or  hiring purchase facilities, and subscription fees of EV charging facilities

With these rebates in place, the prices will be reduced by a significant percentage that will make electric vehicles more affordable for the buyers.

Also read: 10 Best electric cars by range