The road tax rate (LKM) for electric vehicles (EV) was announced by the work today with a payment reduction of up to 85% can be enjoyed by owners. This new LKM rate will come into effect from 1 January 2026 according to the announcement of Transport Minister Anthony Loke today.
The current LKM rate is according to the output power of the electric motor used in the vehicle. It starts as low as RM20 per year for an output of 1-50 KW and rises to RM20,000 per year for an output of 1.010001 MW. It was introduced to further encourage the use of EVs by residents in Malaysia.
It should be noted that this new road tax rate will only apply to battery electric vehicles (BEVs) such as the BYD Seal and also fuel cell electric vehicles (FSEVs) such as the Toyota Mirai that uses hydrogen fuel.
LKM payment rates for EVs will be reviewed at least every five years to ensure effectiveness in achieving the objective of transitioning to zero emission vehicles. Since 2022, the government provides exempted road tax incentives on EVs until December 31, 2025.
