The push for complete digitalisation comes as the government prepares for a major change in the vehicle tax landscape: the introduction of a new road tax structure for Electric Vehicles (EVs).
Currently, EVs enjoy a full road tax exemption, but this incentive is scheduled to expire at the end of 2025. Starting January 1, 2026, the new tax calculation for Zero Emission Vehicles (ZEVs) will take effect, basing the levy on the vehicle’s electric motor output, measured in kilowatts (kW), rather than the traditional engine cubic capacity (cc).
"This is a crucial shift that will ensure the road tax system remains fair and sustainable as we move towards a high-tech, electric-powered future," explained a spokesperson for the Ministry of Finance (MOF). "While initial rates are expected to be competitive to maintain EV adoption momentum, the new structure will provide a long-term, scalable taxation framework for all vehicle classes."
Motorists are advised to check the JPJ portal for the updated road tax rate tables, which now include the new kW-based structure, allowing current EV owners to prepare for the change in the new year.
To encourage the shift toward greener mobility, electric vehicles (EVs) and many hybrid cars are often granted significant incentives:
Electric Vehicles (EVs): Currently, many nations offer full road tax exemptions for EVs until a specified end date (e.g., 2025). When the tax is eventually applied, it will be calculated based on the electric motor’s Power Output (kW), not CC.
Hybrids: These vehicles may also qualify for reduced or exempted tax rates.
2. Renewal Prerequisites: The Mandatory Step-by-Step222
You cannot renew your road tax on its own. It is legally tied to your vehicle insurance.
Clear Outstanding Fines: Ensure you have settled any outstanding traffic summons (if applicable).
Renew Car Insurance: You must purchase or renew your car insurance for the period you wish to renew your road tax for. The insurance details must be updated in the government system first.
Vehicle Inspection (If Required): Older or certain commercial vehicles may require a mandatory inspection before renewal is approved.
