He said the rate would only be applicable to zero-emission vehicles in two categories: battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs).

“On average, the new motor vehicle licence fee is 85% lower compared to the current fee rate,” he said at a press conference at the transport ministry here today.

The government exempts EV vehicle owners from paying road tax, an initiative which will continue until Dec 31, 2025.

On March 30, Loke said the government would announce the road tax rate for ZEVs in April, adding that the new structure would not be a burden as Putrajaya wanted to encourage the use of ZEVs in Malaysia.

Loke said the power range of vehicles had been divided into “blocks” for determination of the road tax fee.

Block 1 is for ZEVs that have electric motor power from 1 watt to 100kW, while block 2 is for vehicles of between 100,001 watts and 210kW. Block 3 is for vehicles of between 210,001 watts and 310kW.

In block 1, tax increases by RM10 for every 10kW increase in power, mean that road tax for a 70kW vehicle will be RM40, while an 80kW vehicle will be charged RM50.

Similarly, in block 2, tax increments are RM20 for every 10kW, and RM30 for every 10kW in block 3.

Loke gave examples, saying that road tax for the 130kW BYD Dolphin premium standard range would be RM120, compared to the existing fee of RM624 if tax was not exempt.

He said that tax for the 220kW Tesla Model Y would be RM305 compared to the existing fee of RM2,583.

He said the payment will be reviewed at least every five years to ensure the transition to ZEVs, as well as manage the impact on government revenue.

Loke also said vehicle manufacturers would issue special plates for EVs to distinguish them from internal combustion engine cars.