Transport Minister announces new EV licence fees in 2026, 85 pct lower than current rate

Anthony Loke

By DayakDaily Team

KUCHING, June 5: The Ministry of Transport has revised the motor vehicle licence fees applicable to electric vehicles (EVs), lowering it by 85 per cent compared to the current fee rate.

The new rates will come into force Jan 1, 2026 , as EV owners will be required to pay motor vehicle licence fees based on the power of their vehicle, said Transport Minister Anthony Loke Siew Fook.


In a recent Free Malaysia Today (FMT) news report, Loke stated that the rate would only apply 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 per cent lower compared to the current fee rate,” he was quoted as saying.

Loke made the remarks during a press conference held yesterday (June 4) at the Transport Ministry’s office in Putrajaya.

FMT also reported that the government exempts EV vehicle owners from paying road tax, an initiative that will last until Dec 31, 2025.

On March 30, Loke stated that the government would announce the road tax rate for EVs in April, and that the new structure would not be burdensome as Putrajaya is encouraging the use of EVs in Malaysia.

The minister further said the power range of vehicles had been divided into ‘blocks’ to determine the fee rates.

“Block 1 are for vehicles with 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 provided examples, stating that the road tax for the 130kW BYD Dolphin premium standard range would be RM120, as opposed to the current fee of RM624 if tax was not exempt.

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

He added that the payment will be reviewed at least every five years to ensure a smooth transition to zero emission vehicles while also managing the impact on government revenues.

Loke additionally mentioned that vehicle manufacturers would issue special plates for EVs to distinguish them from internal combustion engine vehicles. — DayakDaily