KUALA LUMPUR – The Transport Ministry is currently in the final stage of reviewing the road tax rate structure for electric vehicles (EVs) and an announcement is expected next month, said its minister Anthony Loke Siew Fook.
He said the decision to review the structure is aimed at making the road tax for EVs cheaper compared with Internal Combustion Engine (ICE) vehicles, besides encouraging more people to use EVs.
“The challenge faced in the process is the comparison of engine capacity (CC) of ICE and EV vehicles. Currently road tax for EV is free but those who purchase EV vehicles are worried that the road tax would be higher than ICE vehicles.
“The commitment of the government is to reduce tax so that those who purchase EV vehicles will enjoy an appropriate road tax fee. We hope an announcement on road tax for EV can be made before the end of April,” he said.
Loke was speaking to reporters after witnessing the signing of a Memorandum of Understanding (MoU) between Warisan Tan Chong (WTC) Automotif (M) Sdn Bhd (WTCA) and Guangzhou Automotive Group (GAC) Motor International Co. Ltd. (GAC Motor International), here today.
On today’s programme, WTCA and GAC Motor International signed the MoU to initiate feasibility studies for two new completely knocked-down (CKD) vehicle assembly projects in Malaysia.
WTCA was represented by its parent company, WTC Holdings Bhd’s chief executive officer Tan Keng Meng, while GAC Motor International by its president Feng Xingya.
In his preceding speech, Loke said the sharing of technology and knowledge between China and Malaysia in this collaboration will be instrumental in driving advancements and fostering innovation in the automotive industry, enhancing the country as an attractive destination for investment by high quality global investors.
“This decision underscores Malaysia’s significance as a key destination for international expansion and highlights the country’s attractiveness as a preferred market for automotive ventures.
“In line with our objective to reach net-zero greenhouse gas emissions by 2050, we encourage WTCA and GAC to introduce more product line-ups to Malaysia, especially EV, as part of our efforts to promote sustainable transportation and reduce carbon emissions,” he said. – March 30, 2024