According to Bernama, the government plans to introduce a more competitively priced road tax (also known as Lesen Kenderaan Motor, LKM) structure for electric cars (EVs) next month in an effort to promote EV adoption in Malaysia.

Anthony Loke Siew Fook, the minister of transportation, made this announcement at a press conference that followed the International Railway Symposium's opening in Sepang earlier today.

Loke states that the new road tax system will only be put into effect after 2025, which is when the tax exemption period for electric vehicles ends, despite its scheduled announcement next month. All road taxes, sales taxes, import duties, and excise duties are currently totally waived for electric vehicles (EVs), as was first stated in late 2021 as part of the national budget.





According to Loke, the Ministry of Transport and the National EV Task Force have jointly proposed a new, "more competitive" EV road tax structure in response to the growing concerns of EV vehicle owners who fear that their vehicles will be subject to higher road tax once the exemption period expires.

According to the minister's prior statement, the new EV road tax will be less expensive than the same petrol-powered vehicle.

"Encouraging people to start using EVs is necessary, but the EV ecosystem—which includes infrastructure for charging—must also be built and put into place at the same time. As part of a broader government approach, that is one of the areas we are addressing," he stated.