New EV Road Tax Plan 2026 announced; EVs to become more affordable in Malaysia

New EV Road Tax Plan 2026 announced; EVs to become more affordable in Malaysia

KUALA LUMPUR: In Malaysia, EVs are officially exempt from road tax until 2025. However, for 2026, the government has introduced a new EV road tax structure based on the electric motor kilowatt output, as earlier. 

KEY TAKEAWAYS

  • When will the new EV Road Tax rates come into effect?

    The new EV Road Tax rates will be effective starting January 2026.
  • How long will this new EV road tax calculation method be in effect?

    The new EV road tax calculation method will be in effect for at least 5 years.
  • Last year, the transport minister Anthony Loke promised that the new tax structure would be “very affordable and even cheaper than internal combustion engine cars.” True to his words, the new rates are actually lower than the outgoing structure and gasoline-powered vehicles, aligning with the government's policy to encourage the adoption of electric vehicles in Malaysia.

    The transport minister says the new EV road tax structure is still based on power output but has been simplified. Higher power is taxed more, with prices increasing in small increments. The rates are much cheaper than before, with some dropping by as much as 89%. 

    The EV road tax structure is divided into different blocks ranging from 0 watts to 1,010,000 watts. Each block is set at a motor power range of 100,000 watts or 100 kW. These include -  0 kW to 100 kW, 100 kW to 210 kW, 210 kW to 310 kW, and so on.

    For each block, the minimum and maximum road tax is set. For example, the minimum tax for block 1 is RM 20, while the maximum rate is RM 70. For block 2, the minimum tax rate is RM 80, and the maximum fee rate is RM 280. However, the tax increases in small increments. For every 10 kW, your electric motor power goes up. And thus more powerful EVs pay more tax.

    The Ministry of Transport provided the following list mentioning Outgoing EV road tax and 2026 EV road tax -

    Vehicle Model

    Electric Motor Power (kW)

    Outgoing EV road tax

    2026 EV road tax

    Hyundai KONA e-lite

    100

    243

    70

    ORA Good Cat 400 Pro

    105

    324

    80

    ORA Good Cat 500 Ultra

    105

    324

    80

    Nissan Leaf

    110

    374

    80

    Hyundai Ioniq 6 Lite RWD

    111

    384

    100

    Hyundai Ioniq 5 Lite

    125

    463

    120

    MG4 Standard

    125

    524

    120

    BYD Dolphin Premium Standard Range

    130

    624

    120

    MG ZS

    130

    624

    120

    Hyundai Kona e-Lite

    136

    657

    140

    Mini Electric

    135

    724

    140

    Mercedes EQA 250 AMG

    140

    727

    140

    Chery Omado E5

    150

    903

    160

    BYD Atto

    150

    903

    160

    KIA Niro

    150

    903

    160

    Hyundai KONA e-max

    150

    903

    160

    BYD Dolphin Premium Extended Range

    150

    1,024

    160

    MG4 Luxury

    150

    1,024

    160

    MG4 EXTD Range

    180

    1,834

    220

    Hyundai Kona e-max

    204

    2,199

    280

    Mercedes EQB 350 4MATIC

    215

    2,463

    305

    Tesla Model 3 RWD

    208

    2,590

    280

    Tesla Model Y

    220

    2,583

    305

    Hyundai Ioniq 5 Max

    225

    2,703

    335

    Mercedes EQE 350+ AMG

    215

    2,779

    305

    BMW iX1 xDrive30 

    230

    2,823

    335

    BMW iX xDrive40

    240

    3,063

    365

    BMW iX xDrive40 Sport

    240

    3,063

    365

    BYD Seal RWD Premium

    230

    3,184

    335

    Hyundai Ioniq 6 Max AWD

    239

    3,427

    365

    BMW i4 eDrive40

    250

    3,724

    395

    BMW i5 eDrive40

    250

    3,724

    395

    Volvo C40

    300

    4,503

    545

    Audi Q8 e-tron

    300

    4,503

    545

    Mercedes EQE 500 4MATIC

    300

    4,503

    545

    VOLVO C40

    300

    4,503

    545

    VOLVO XC40

    300

    4,503

    545

    Porsche Taycan

    300

    5,074

    545

    Porsche Taycan CT

    320

    5,614

    615

    MG4 Xpower

    320

    5,614

    615

    Mercedes EQS 500 4MATIC

    330

    5,884

    665

    Tesla Model 3 Long Range AWD

    366

    6,856

    865

    BYD Seal Performance AWD

    390

    7,504

    965

    Mercedes EQS 580 4MATIC

    400

    6,903

    1,015

    KIA EV6 GT

    430

    7,623

    1,240

    BMW i4 M50

    400

    7,774

    1,015

    LOTUS Eletre

    450

    8,103

    1,440

    BMW iX M60

    455

    8,223

    1,540

    Mercedes AMG EQE 53 4MATIC

    460

    9,394

    1,540

    Mercedes AMG EQS 53 4MATIC+

    484

    10,042

    1,840

    LOTUS Eletre R

    675

    13,503

    4,890

    Porsche Taycan Turbo CT

    650

    14,524

    4,290

    Porsche Taycan Turbo GT

    760

    17,494

    6,715

    Also read: Pro-Net joins hands with ChargeSini for expansion of EV charging network

    Sippi Vig

    Sippi Vig

    Sippi is a versatile writer and specializes in crafting both blog articles and site content for the automotive industry. Her strong analytical skills help in curating articles backed with stong number analysis for our audience. She enjoys reviewing the latest cars/models and describing new technologies. She holds a master of business administration degree in finance and marketing. When she’s not working, she enjoys travel, adventure, reading, and gardening.

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