With April Behind Us, We Look Ahead to Updates on the EV Incentive Structure

Back in April, we reported our transport minister expressed hope that an announcement regarding EV road taxes could be made before the end of April.

The current road tax exemption for EVs, implemented in 2022 and valid until December 31, 2025, operates under a kilowatt-based computation system (correlates with the car power output, the road tax for EVs is calculated based on the combined power rating of their electric motor(s) and different power brackets dictate the base rate, along with any additional progressive rates). In contrast to ICE vehicles, where road tax depends on engine capacity (or we fondly refer to CC).

With the recent launch of the Tesla Model 3 performance in Malaysia, with a whopping 460 hp, which translates to a roadtax of RM 6100 does make it rather jaw-dropping for the average joe, even one that can comfortably afford a Model 3 Performance.

We certainly hope that the approach used does not merely look at power output but rather also considers the other aspects such as environmental impact or emissions, cost of the car or which segment is its target demographic and to encourage the adoption of electric vehicles.

This approach aligns with global trends towards sustainability and addresses concerns about climate change and air quality. By incentivizing the transition to electric vehicles, governments can accelerate the shift away from fossil fuels and contribute to a cleaner, greener future for all.