The federal government just lately introduced a new street tax construction for electrical car (EVs) that might be efficient from January 1, 2026. The brand new street tax construction will change the earlier one which was first decided in 2019 and serves to encourage EV adoption with charges which might be comparatively cheaper when in comparison with inside combustion engine (ICE) autos.
At current, all EVs registered in Malaysia are usually not required to pay street tax till the tip of 2025 as a part of authorities’s incentives outlined in Funds 2022. In case you’re curious how a lot you’ll be paying after December 31, 2025, you’ve come to the precise place. However first, some clarification is required.
What’s modified with the brand new EV street tax construction?
As with the earlier EV street tax construction, the brand new one remains to be kilowatt (kW)-based and grouped into completely different motor(s) output energy bands. With the older construction, EVs with outputs as much as 80,000W (80 kW) are charged a flat fee of both RM20, RM44, RM56 or RM72. Above 80 kW, there are 5 energy bands with differing base and accompanying progressive charges, the latter being a certain quantity per 50W (0.05 kW) above the bottom energy output of the band.
The brand new EV street tax construction additionally options numerous energy bands, with the primary starting from 1W (0.001 kW) to 100,000W (100 kW). The minimal yearly street tax on this band is RM20, with each 9,999W (9.999 kW) block increment being charged a further RM10.
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Different bands can have their very own minimal yearly street tax (the bottom fee) and pricing for every 9.999 kW block increment. Solely on the very high is there a flat fee of RM20,000, though this is applicable to extraordinary EVs with an influence output of at the least 1,010,001W (10,100.01 kW) or extra.
In means, the per block increment is just like the progressive fee of the older construction, however is cheaper total as a result of the increment block is bigger. For instance, an EV with an influence output of 100 kW is charged simply RM70 with the brand new construction in comparison with RM274 with the outdated one – the latter determine is calculated by including the bottom fee (RM224) of the efficient band with the progressive fee – (100,000W – 90,000W)/50W x RM0.25).
How a lot will I be paying for EV street tax from January 1, 2026?
To find out the street tax payable, merely discover out your EV’s nominal energy output (not the determine with overboost, and so forth.) and see the place it matches throughout the respective energy band vary. If the EV makes 155 kW, it will fall between the 150,001W (150.001 kW) and 160,000W (160 kW) vary, which means the street tax is RM180.
We’ve pulled energy outputs of all EVs at present on sale in Malaysia in addition to these anticipated to go on sale right here quickly to create this useful desk on your reference. As you possibly can inform, the quantity payable is loads cheaper than it was earlier than, and we’ll use the BMW i4 eDrive40 M Sport for example.
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The i4 eDrive40 M Sport has an influence output of 250 kW, which might have a street tax of RM3,724 with the outdated construction. Over 150,000W (150 kW), the calculation with the earlier system would see the bottom fee (RM1,024) being added with the progressive fee, the latter being the quantity of energy above 150 kW, which is 100,000W, divided by 50W instances RM1.35 to make RM2,700.
With the brand new construction, the BMW EV’s street tax is decreased to only RM395, which is a large 89.4% lower. The bottom powered EVs in our desk are the BYD Dolphin Dynamic Normal Vary and Neta V with 70 kW, which have a street tax of simply RM40. Do you have to need to do extra comparisons, you are able to do so through the use of this desk in addition to the EV street tax calculator based mostly on the older construction at present dwell on CarBase.my.
So, what do you consider the brand new EV street tax construction? Does it make EVs extra attractive for you and can you be making the change? Share your ideas within the feedback beneath.
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