Malaysian Government Announces New Road Tax Structure for Electric Vehicles Starting 2026

2024/06/11
Policy, Taxation
-
Malaysia
Japan
Indonesia
The Malaysian government has recently announced that a new tax structure for electric vehicles (EVs) will be implemented starting January 1, 2026, replacing the previous structure established in 2019. The new tax structure aims to encourage the adoption of EVs with relatively lower rates. Currently, all EVs registered in Malaysia are exempt from road tax. However, with the tax exemption ending by the end of 2025, these vehicles will begin to pay tax under the new structure starting January 1, 2026. The new structure is categorized based on the power of the electric motor (kilowatt kW) and divided into three groups, with tax rates increasing as power increases. For instance, the road tax for a BYD Dolphin 130kW standard premium model would be 120 ringgits under the new rules, significantly lower than the 624 ringgits currently required after the exemption ends.
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