EV Road Tax Price In Malaysia – Petrol Car Road Tax Would More Than Double If Taxed Like EVs

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EV Road Tax Price In Malaysia – Petrol Car Road Tax Would More Than Double If Taxed Like EVs

If you’re planning to get an electric car in Malaysia, you might want to equip yourself with knowledge on how the EV road tax calculation works.
In Malaysia, the road tax for combustion engine cars is calculated based on the engine displacement. The bigger the engine displacement, the higher the price of the road tax. (eg. 5.0-litre Ford Mustang has much higher road tax than 1.0-litre Perodua Axia).
With 560 kW (761 PS) of power output, road tax for the Porsche Taycan Turbo S would amount to RM 12,094
For electric cars, or EVs, the road tax is calculated on the power output of the car. Power output is basically the horsepower or PS figure that you usually see on brochures. But for the purpose of regulation & standard calculation, the unit of kilowatts (kW) is used.
1kW = 0.735 hp (Metric unit Horsepower)
1kW = 0.746 hp (Imperial unit Horsepower)
The kW rating used to grade EVs for the road tax calculation is not be confused with the kW rating for charging speed or the kWh rating for the EV battery capacity. Simply, the more powerful your car, the more it will be taxed, regardless of how efficient or environmentally friendly it is.
Unfortunately, Malaysia is not getting the BMW iX xDrive 50 which is more powerful at 523 PS/765 Nm.
The iX xDrive 40 has a maximum power output of 326 PS and maximum torque of 630 Nm. Both iX xDrive 40 and iX xDrive50 have dual-motor AWD.
Battery sizes also differ as the 71-kWh battery pack in the xDrive40 gives 425 km of range while the 105.2-kWh battery pack in the xDrive50 gives a plentiful 630 km of range.

So, how is the EV road tax calculated in Malaysia?

We’ll have to separate them into brackets of power output
So far, the MINI Cooper SE, Porsche Taycan, and Nissan leaf have all followed the following EV road tax calculation method (Although some of them have received certain types of discounts)

EV Road Tax Calculation In Malaysia For EV Saloons & Compacts

50 kW and below RM 20
>50 kW to 60 kW RM 44
>60 kW to 70 kW RM 56
>70 kW to 80 kW RM 72
>80 kW to 90 kW RM 160 + RM 0.32 per 0.05 kW above 80 kW
>90 kW to 100 kW RM 224 + RM 0.25 per 0.05 kW above 90 kW
>100 kW to 125 kW RM 274 + RM 0.50 per 0.05 kW above 100 kW
>125 kW to 150 kW RM 524 + RM 1.00 per 0.05 kW above 125 kW
Above 150 kW RM 1,024 + RM 1.35 per 0.05 kW above 150 kW.
MINI Cooper SE – 135 kW (183 PS)
Take the MINI Cooper SE or example, which has a maximum power output of 135 kW, the road tax is RM 724, calculated with the above method.
“Above 125 kW to 150 kW – RM524 with RM1.00 for every 0.05 kW increase from 125 kW”
So, it is
RM524 + RM200 = RM 724
What if we were to tax an ICE sedan/compact car this way?
Honda City 1.5 – 89 kW (121 PS)
Let’s take a 2021 Honda City 1.5
With a 1.5-litre engine, the displacement-based road tax is RM 90
With the EV output-power-based tax structure, road tax for the 89 kW (121 PS) Honda City becomes
RM 160 + RM 57.60 = RM 217.60
That’s more than double. Yikes.
With the launch of the BMW iX, we can see the application of the EV SUV road which is calculated at a slightly lower rate than for the EV sedans/compacts shown above.

EV Road Tax Calculation In Malaysia For EV SUVs

50 kW and below RM 20
>50 kW to 60 kW RM 42.50
>60 kW to 70 kW RM 50
>70 kW to 80 kW RM 60
>80 kW to 90 kW RM165 + RM 0.17 per 0.05 kW above 80 kW
>90 kW to 100 kW RM199 + RM 0.22 per 0.05 kW above 90 kW
>100 kW to 125 kW RM 243 + RM 0.44 per 0.05 kW above 100 kW
>125 kW to 150 kW RM 463 + RM 0.88 per 0.05 kW above 125 kW
Above 150 kW RM 903 + RM 1.20 per 0.05 kW above 150 kW.
BMW iX xDrive50 shown; BMW iX xDrive 40 – 240 kW (326 PS)
Hence, for the BMW iX xDrive40 which has a power output of 240 kW (326 PS), the road tax is as such:
RM 903 + RM 2,160 = RM3,063
Is that reasonable?
Well, let’s see how much the road tax for a Proton X70 would cost if it was calculated like an EV’s road tax.
Proton X70 – 135 kW (184 PS)
With the displacement-based method, the Proton X70 with a 1.8-litre TGDI is charged a road tax of RM 279.60.
With the EV output-power-based calculation, the Proton X70 with a 135 kW (184 PS) would taxed as below:
“Above 125 kW to 150 kW – RM463 + RM0.88 for every 0.05 kW increase from 125 kW”
RM 463 + RM 176 = RM 639
That’s more than double right there. Again, yikes.

Conclusion

As such that is the method to calculate the road tax for EVs in Malaysia. It certainly isn’t encouraging us to go green.
What are your thoughts on this? Do EVs deserve a high road tax rate since they are for the rich? Or should the road tax be lower for EVs to encourage the move toward electrification?
Arif Chan
With a deep interest and relevant experiences in the automotive industry, Arif writes about everything automotive. His employment history includes being an automotive engineer, a highway engineer, an alternative-fuel researcher, and a motoring journalist.