, announced this week by the transport ministry. Set to be in place from January 1, 2026, the EV road tax structure replaces theUnlike ICE vehicles that are taxed based on engine capacity, EVs don’t have engines, so what’s being measured with battery-powered cars are power, typically measured in kilowatts for EVs, as opposed to PS/hp, which is more common with ICE cars in Malaysia. One horsepower is equivalent to 0.746 kW, 100 hp=74.6 kW.
But what about ICE vehicles, which the majority of Malaysians own, and will continue to own in the foreseeable future? Will there be a change in road tax calculation based on power instead of engine capacity? UnfortunatelyWhich is antiquated. Even before EVs became mainstream here, holes have been punched through the cc-based ICE road tax format, first by downsized turbocharged engines and then plug-in hybrids.
Take a look at the list we compiled, which compares an ICE car’s theoretical kW-based road tax versus their actual road tax. Save for a few outliers – mostly PHEVs or cars with downsized turbo engines – many cars would have lower road tax, some substantially so. The biggest difference came from the pick-up trucks and supercars/luxury cars from Ferrari and Rolls-Royce . Is your car in the list? Check out how much you’d have to pay if road tax is based on power.
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