According to Loke, the EV road tax in 2026 will be about 85% less than it is now.

Anthony Loke says that electric vehicle owners (EVs) will be able to enjoy a tax reduction of up 85% once the tax holiday expires on December 31 next year.

The Transport Minister announced that the new road tax structure would cover both pure fuel cell electric vehicles and pure battery electric cars (PBEV). It will come into force on January 1, 2026.

He said at a press event held here on Tuesday, June 4, that the fee would be based on power output.

The move, he said, would encourage owners of cars with internal combustion engines (ICEs) to switch to electric vehicles.

“We understand that EV owners are concerned about the high cost of fees once the tax holidays ends.

He said: “I made it my priority to make sure that the new fees structure was lower than the old one.”

Loke explained that, for example, an owner of a car with a power output between 100kW-200kW would pay a charge between RM20 to RM70.

He said that the maximum fee based upon the progressive increase of power output would be RM575.

He added that, for example, a BYD Dolphin Premium Standard Range owner would be required to pay RM624, while a Tesla Model Y would be required to pay RM2,583 based on the current fee structure if no tax holiday was in place.

The new fee structure would see the BYD charging only RM120, while the Tesla would charge RM305.

He said that this represents a fee reduction of approximately 85%. The fee structure will be reviewed every five years.

Loke reported that a total number of 15,671 EVs have been registered out of the 1,533,332 total vehicles registered across the country.

He added that as of April 30, this year, 7003 EVs out of the 499,945 total cars were registered.

In a similar matter, Loke stated that the Ministry is in discussions with car manufacturers about EV special plates and will make an announcement once all issues have been resolved.

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