Tax incentives not enough to boost EV adoption: MCA

Tax incentives applied to zero-emissions vehicles in Malaysia are insufficient in encouraging Malaysians in taking up ownership of electric vehicles, said MCA vice president Wee Jeck Seng, reported Malaysiakini. According to the party’s VP, the government needs to take more proactive steps in creating a comprehensive electric vehicle ecosystem.

These steps include the preparation of sufficient EV charging stations, reasonable charging rates, as well as improvements to the existing infrastructure, Wee said.

“Support policies and incentives should also be offered to encourage more charging station installations at petrol stations, shopping centres, condominiums, and public places to expand access for EV drivers. This is because the lack of charging facilities and the high prices of EVs are among the factors that influence consumers’ decisions towards purchasing EVs,” he said.

Tax incentives not enough to boost EV adoption: MCA

The remarks come after transport minister Anthony Loke unveiled the new road tax structure for electric vehicles this week, bringing rates that are up to 89% lower than before, or 85% lower on average.

As all Malaysia-registered EVs are exempt from road tax until December 31, 2025, the change comes on January 1, 2026, when the kilowatt-based road tax structure will take effect, albeit revised from before. How much road tax will you be paying for your EV, come 2026? Read on, here.

The new road tax structure for electric vehicles in Malaysia was initially scheduled for announcement in April, though this has now revealed rates that are lower than first determined in 2019. These rates are cheaper than those for internal combustion engined vehicles, which is in line with the government’s policy on providing incentives to encourage the use of EVs, the transport minister said.

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