How much lower are the new EV road tax rates compared to current ones?

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The New EV Road Tax Rates Are Significantly Lower Than Current Rates

The newly announced road tax (LKM) rates for zero-emission vehicles (ZEVs), specifically battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs), will be implemented from January 1, 2026, and represent a substantial reduction compared to existing charges. These new rates are designed to be up to 85 per cent lower than the current fees, aiming to encourage greater adoption of electric vehicles in Malaysia.
New Rates Based on Electric Motor Power

The road tax structure for ZEVs will be determined by the power output of their electric motors. These rates are categorised into blocks, with block 1 covering motor power from 1 watt to 100,000 watts, and block 2 encompassing vehicles with motor power between 100,001 watts and 210,000 watts. Further tiers, such as block 3, have minimum and maximum rates. For instance, the minimum road tax for block 1 is set at RM20, with a maximum of RM70, while block 3's rates range from RM305 to RM575.
Substantial Cost Savings for Consumers

The reduction in road tax is expected to translate into significant savings for EV owners. For example, the BYD Dolphin Premium Standard Range, with a motor power of 130 kW, will see its road tax drop from the current RM624 to a new rate of RM120. Similarly, the Tesla Model Y, with a 220kW motor, will have its road tax reduced from RM2,583 to RM305.
Long-Term Policy Review and Exemption Period

These new road tax rates for ZEVs are scheduled to be reviewed at least every five years to ensure their continued effectiveness in promoting the transition to electric mobility and to assess their impact on government revenue. This announcement follows a period of full road tax exemption for EVs, which was in effect from January 1, 2022, to December 31, 2025, granted by the Road Transport Department (RTD).

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How much lower are the new EV road tax rates compared to current ones?

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