KUALA LUMPUR: The Transport Ministry is in the final stage of reviewing the road tax structure for electric vehicles (EVs).
Minister Anthony Loke today said it would announce the rate for EV cars by the end of April after discussions were held with the ministry's Land Division.
"We hope to announce the rate in a month. This is so that when the exemption period for the EV road tax ends this year, the road tax that comes after will be offered at an affordable rate.
"It has been one of EV users' biggest concerns because although they are exempted from road tax, the rate (for EV) that was gazetted is far higher than ICE (internal combustion engine vehicles) vehicles.
"And my commitment to reduce the tax is so that EV users can have a more reasonable tax rate."
He said this after witnessing a signing ceremony between GAC Motor and Warisan Tan Chong Group Bhd at the Malaysia International Trade and Exhibition Centre here.
Loke said the commitment was in line with the government's desire and policy to promote EVs.
"For now, not many people use EVs, so there will be challenges. But this will pick up and a lot of car companies have started exploring the EV industry.
"As it expands, companies will offer EV cars with interesting prices.
"So we as the government must welcome this initiative as it also aligns with our policy to reduce carbon emission."
Meanwhile, he added that the ministry had been in talks with Prasarana on plans to shift to electric buses for public transportation.
"Three months ago, I discussed with them and encouraged them to look at the new procurement strategy to adopt more EVs.
"But the cost of EV buses is high right now compared with normal ones."