Road Tax for Electric Vehicles (EVs) in Malaysia: An Overview

One crucial aspect of car ownership is the overall cost, which includes expenses like insurance and road tax renewal. In the case of higher engine capacity vehicles, such as EVs, the road tax can be significantly higher compared to the average Myvi.

Unlike conventional internal combustion engine (ICE) cars, which determine road tax based on engine capacity (cc) such as 1.3, 1.5, or 2.0, EVs lack an engine altogether. So how is road tax calculated for EVs?

Road Tax Calculation Based on Motor Kilowatt Output

Since EVs do not have an engine, the road tax calculation is based on the car's motor kilowatt (kW) output. A higher kilowatt output signifies greater power in EVs, similar to how horsepower is used as a measure for ICE cars.

Let's delve into the road tax calculation for a personal-use "saloon" car (sedan, hatchback, coupe, wagon, convertible). The road tax rates are as follows:

Fixed Rate (Cars Under 80kW)

Under 50kW: RM20

50kW – 60kW: RM44

60kW – 70kW: RM56

70kW – 80kW: RM72

For cars under 80kW output, the calculation is straightforward. However, for cars exceeding 80kW output, a progressive rate is applied to determine the road tax.

Progressive Rate (Cars Over 80kW)

80kW – 90kW: RM160 (base rate) + RM0.32 (progressive rate)

90kW – 100kW: RM224 (base rate) + RM0.25 (progressive rate)

100kW – 125kW: RM274 (base rate) + RM0.50 (progressive rate)

125kW – 150kW: RM524 (base rate) + RM1.00 (progressive rate)

Over 150kW: RM1,024 (base rate) + RM1.35 (progressive rate)

The progressive rate is calculated per 0.05kW increase from the base output. To gain a better understanding of how the calculation works, let's consider an example.

Example: EV Car Road Tax Calculation Suppose you decide to purchase a Nissan Leaf as your first EV in Malaysia.

Car: Nissan Leaf

Power output: 110kW

This places your car in the 100kW – 125kW road tax bracket.

First 100kW: RM274 (base rate)

Remaining 10kW: RM0.50 (progressive rate) x 200 = RM100

Total road tax: RM374

It's important to note that in Malaysia's Budget 2022, the government announced tax-free incentives for EVs, including road tax exemptions. This could be an opportune time to embrace the EV revolution.

While we're here, let's explore the road tax costs for some EV models available in Malaysia (as of November 2021), excluding the road tax incentives.

Is EV Road Tax Cheaper Than that of Combustion Engine Cars in Malaysia?

To compare the costs, we can convert kilowatt values into horsepower. Let's perform the calculation using the Nissan Leaf.

1 horsepower (hp) = 0.7457 watt

Nissan Leaf's Horsepower = 147 hp

Nissan Leaf's Road Tax = RM374

Therefore, for combustion engine cars with a similar horsepower to the Nissan Leaf:

Proton X50 (150 hp) = RM120

Audi A3 (150 hp) = RM70

In terms of horsepower, the road tax for EVs appears to be more expensive than that of combustion engine cars. However, it's crucial to remember that EVs will be exempt from road tax between 2022 and 2025, thanks to the recent budget incentives.

How is road tax calculated for electric vehicles in Malaysia: the short answer

Road tax for electric vehicles in Malaysia is calculated based on the motor kilowatt output instead of engine capacity since EVs do not have traditional engines. For EVs under 80kW, a fixed rate applies ranging from RM20 for under 50kW to RM72 for 70kW to 80kW. For EVs over 80kW, a progressive rate system is used combining a base rate with an additional charge per 0.05kW increase. For example, a Nissan Leaf with 110kW output falls in the 100kW to 125kW bracket, resulting in RM274 base rate plus RM100 for the remaining 10kW, totaling RM374. EvGuru provides comprehensive information about EV ownership costs and charging solutions for Malaysian drivers.

Frequently asked questions

How is road tax calculated for electric vehicles in Malaysia

Road tax for EVs in Malaysia is based on motor kilowatt output rather than engine capacity. Cars under 80kW pay fixed rates from RM20 to RM72 depending on their power band. Cars over 80kW use a progressive rate system with base rates plus additional charges calculated per 0.05kW increase above the bracket threshold.

What is the road tax for a Nissan Leaf in Malaysia

The Nissan Leaf with 110kW power output falls in the 100kW to 125kW road tax bracket. The calculation includes RM274 base rate for the first 100kW plus RM100 for the remaining 10kW at the progressive rate of RM0.50 per 0.05kW, totaling RM374 annual road tax.

Is EV road tax cheaper than petrol cars in Malaysia

When comparing similar horsepower, EV road tax appears more expensive than combustion engine cars. A Nissan Leaf with 147 horsepower costs RM374 road tax, while comparable petrol cars like the Proton X50 at 150 horsepower costs RM120 and an Audi A3 at 150 horsepower costs RM70.