PUTRAJAYA (June 4): Road tax rates for zero-emission vehicles (ZEVs) or electric vehicles (EVs) will be set based on the power of the electric motor, and it will come into force on Jan 1, 2026, announced Transport Minister Anthony Loke Siew Fook.

Loke said the new fee is 85% lower than the existing rate, which aims to encourage the people to switch to the use of ZEVs.

He said all fee rates for ZEVs will be reviewed at least once every five years, to ensure effectiveness in achieving the objectives of the transition to ZEVs, 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 road tax rate only applies to ZEVs in the PBEV (battery electric vehicle) and FCEV (fuel cell electric vehicle) categories," Loke said at a press conference to announce the new road tax rate for EVs here on Tuesday.

In February 2022, the Road Transport Department announced full road tax exemption for EVs from Jan 1, 2022 to Dec 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 one 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.

Loke said the government will gazette the road tax rate for the ZEV 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.