PUTRAJAYA, June 4 ― Road tax (LKM) rates for zero emission vehicles (ZEV) or electric vehicles are set based on the power of the electric motor and it will come into force on January 1, 2026, announced Transport Minister Anthony Loke.

Loke said the new fee is 85 per cent lower than the existing rate which aims to encourage the people to switch to the use of ZEV vehicles.

He said all fee rates for ZEV vehicles will be reviewed at least every five years to ensure effectiveness in achieving the objectives of the transition to ZEV as well as the impact on government revenue.

"The fee rate will increase in line with the increase in electric motor power. The increase in electric motor power will represent an increase in the purchase price, size, segment and weight of the vehicle.

"The new LKM fee rate set only applies to ZEVs in the PBEV (battery electric vehicle) and FCEV (fuel cell electric vehicle) categories,” he said at a press conference to announce the new LKM fee rate for electric vehicles (EV) here today this.

In February 2022, the Road Transport Department (RTD) announced the incentive offer of full road tax exemption for EV vehicles from January 1, 2022 to December 31, 2025.

Following that, on March 30, Loke reportedly said the government would announce the road tax rate for ZEVs in the near future and assured that the amount to be paid would not be burdensome as it wanted to encourage the use of ZEVs in Malaysia.

Regarding the block rate setting, Loke said it is set at a motor power range of 100,000 watts.

For example, Loke said block 1 is for ZEVs that have electric motor power from 1 watt to 100,000 watts and block 2 is between 100,001 watts and 210,000 watts.

He said the minimum road tax rate for block 1 is RM20 while the maximum rate is RM70.

"For block 3, the minimum fee rate is RM305 and the maximum fee rate is RM575,” he said.

Sharing a comparison of the ZEV road tax rate before and after the amendment, Loke said that the BYD Dolphin Premium Standard Range vehicle with a capacity of 130 kilowatts (kW) will only be charged a fee of RM120 compared to the existing fee of RM624.

He said, for the Tesla Model Y with a capacity of 220kW, it is RM305 compared to the existing fee of RM2,583.

He said the government will gazette the road tax rate for the ZEV vehicle segment in the near future to make it easier for buyers to make references.

According to Loke, the new rate gives a signal to ZEV vehicle manufacturers to make Malaysia a vehicle production hub. ― Bernama