THE government will announce a new road tax structure for electric vehicles (EV) next month in an effort to encourage more people to use the vehicles, Transport Minister Anthony Loke said.

Speaking at a press conference after officiating at the International Rail Symposium in Sepang today, Loke said the more competitive road tax structure will only take effect after 2025, after the end of the road tax exemption period for EVs as announced by the government last year.

Loke said the government was aware of EV owners’ concerns about having to pay high road tax after the exemption period ends, and the Transport Ministry (MOT) had also presented to the National EV Task Force to ensure that the new structure is more competitive.

“Encouragement is needed for people to start embracing the use of EVs, and the ecosystem needs to be developed, including (the installation of) EV charging stations.

“This is one of the measures we are taking as a whole government approach,” he said.

On February 15 last year, the Road Transport Department introduced the road tax exemption for EVs, which applies to battery and fuel cell (hydrogen) EVs but not hybrid vehicles, valid from January 1, 2022 to December 31, 2025. – Bernama, November 6, 2023.