The new road tax structure for battery EVs (BEVs) announced today will be enforced starting 1-January 2026. According to Transport Minister Anthony Loke, the new road tax structure is about 85% cheaper than the amount levied on an equivalent combustion engine model, outlier models aside.

The new power output-based road tax structure will see the cheapest BYD Dolphin Standard Range (70 kW) paying just RM 40, while the more powerful 150 kW Extended Range variant will pay RM 160.

Prior to this, the figure was around RM 70 and RM 903 respectively, but no owner had to pay anything because BEVs are exempted from paying road tax until 31-December 2025.

Unlike combustion engine cars, road tax for BEVs make no distinction between different body types.

Loke said the Ministry of Transport will monitor the public’s response to the new road tax structure, and if necessary, make further adjustments in the near-term.

He added that the ministry will conduct a review of the road tax structure at least once every 5 years, until the objective of transitioning more owners of combustion engine cars into BEVs are met.

Malaysia has a goal of making electric vehicles (EV) constituting 15% of total new car sales by 2030. However, the figure includes hybrids (HEVs) and plug-in hybrids (PHEVs).

There is no specific target for BEVs, and communication materials shared by the government often use interchange the term electrified vehicles (xEVs, including hybrids and plug-in hybrids) with EVs (electric vehicles, may or may not include HEVs or PHEVs).