Local EV road tax to finally switch to kW-based rate?



It’s looking quite likely that owners of full-electric vehicles will be paying more for their vehicle’s road tax in the upcoming future, if what is apparently emerging is proper. Word from the grapevine is that the road transport department (JPJ) will be moving to calculating the street tax rates for electric vehicles based on their engine kilowatt output rather than the conventional motor cc displacement as previously utilised.

This will effectively change the payable road tax rate for EVs, which was initially drafted for calculation based on a kilowatt rate, and for which the table was set up since 2011. According to JPJ sources, the prices for EVs were previously keyed in by clerks under the cc category throughout the vehicle registration, as a matter of familiarity. This is set to change.

A hint of the possible revision started a week, when a guideline on the calculation of the road tax for pure electric vehicles began to circulate around social media circles, with some thinking that this was a brand new, incoming rate. It turns out that it isn’t, and the document pages actually list the present street tax rates for electric cars and motorbikes from before. But from what is being communicated, it would appear that the change will come about, although how soon remains to be seen.

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Let’s take a look at how the switch to kW-based input would pan out, price-wise. For electric motorbikes (code AA), the road tax for such two-wheelers with an output rating of 7.5 kW and below will be set at a predetermined rate of RM2.

For e-motorcycles using a motor output rated above 7.5 kW, the rate is calculated as:

Above 7.5 kW to 10 kW – RM9
Above 10 kW to 12.5 kW – RM12
Above 12.5 kW to 25 kW – RM30
Above 25 kW to 40 kW – RM40
For e-motorbikes having an output of above 40 kW – RM42

For personal saloon motorcars – individual (code AB) and company registration (AC) – with a rated output of 80 kW and below, the prices are as such:

50 kW and below – RM20
Above 50 kW to 60 kW – RM44
Above 60 kW to 70 kW – RM56
Above 70 kW to 80 kW – RM72

Vehicles with a rated motor output of above 80 kW will have a base road tax applied as well as a progressive rate calculated into the final sum. The street tax rate is calculated as follows, starting with a base rate and an additional rate for each kW increase:

Above 80 kW to 90 kW – RM160, and RM0.32 sen for every 0.05 kW (50 watt) increase from 80 kW
Above 90 kW to 100 kW – RM224, and RM0.25 sen for every 0.05 kW (50 watt) increase from 90 kW
Above 100 kW to 125 kW – RM274, and RM0.50 sen for every 0.05 kW (50 watt) increase from 100 kW
Above 125 kW to 150 kW – RM524, and RM1.00 for every 0.05 kW (50 watt) increase from 125 kW
Above 150 kW – RM1,024, and RM1.35 for every 0.05 kW (50 watt) increase from 125 kW

Given the dearth of fully-electric vehicles on the local scene now, there won’t be much impact as yet, and even for existing EVs like the Nissan Leaf and Renault Zoe) there’s really not too much for owners to consume. The Tesla Model S receives the largest jump, although users won’t feel the pinch in any respect, since their cars are leased and the road tax is covered under the terms of the leasing agreement.

Some calculations to get an idea of what the going rates will be with the assumed new scheme, if and when that comes about. The Zoe has a 65 kW (87 hp) output, so its ‘fresh ’ EV road tax will be RM56. It currently pays RM28 in road tax based on the present rate, according to a Zoe user.

The first-gen Leaf, which was introduced by Edaran Tan Chong Motor (ETCM) back in 2013, has an 80 kW motor, and will cover RM72 in road tax below the EV rate. The second-generation Leaf that’s place to come to Malaysia later this year has a 110 kW motor, which means it would pay RM374 (RM274 base rate plus RM100 on the calculated increase from 100 kW) in road taxation.

The price jumps significantly with high output motors, with every kilowatt above 150 kW being charged RM27. The road tax for a facelifted Tesla Model P90D now is a fairly insane RM10, based on a 7.75 kW output (we have no idea how that figure came about).

Depending on the new rate, the road tax for the S 90D, which has a 345 kW (463 hp) working output, will be RM6,289 (RM1,024 base rate plus RM5,265), while the S 70 RWD variant, which has a 235 kW (315 hp) output, will cover RM3,319 (RM1,024 base rate plus RM2,295). Meanwhile, the road tax for the foundation 270 kW (362 hp) version of the S 85 will be RM4,264 (RM1,024 base rate plus RM3,240).

Incoming cars like the Porsche Taycan, that has been confirmed for a 2020 arrival here, will also be paying a fair bit in tax. With an output of 440 kW, the road tax for a foundation Taycan will be RM8,854 (RM1,024 base rate plus RM7,830 as scaled on the 290 kW gap from 150 kW), and probably higher for the Taycan 4S and Turbo variants. Naturally, the amount doesn’t seem like it will impact or affect any possible Taycan owners.

As it goes along, a trend may emerge with the electrification path in which where most of the action will involve offerings around the 150 kW region. Hybrids and plug hybrids (PHEV) will continue to pay road tax based on regular cc displacement for combustion engines, which means there’s not any change regardless of what kind of output their motors offer. What do you think of the eventual switch to the road tax for EVs? Share your thoughts with us in the comments section.

The article Local EV street tax to finally switch to kW-based rate? Appeared on Paul Tan's Automotive News.

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