Malaysia introduces licence fee exemptions for EVs, vehicles for persons with disabilities

In line with the government’s allocations under Budget 2022, the Transport Ministry will introduce motor vehicle licence fee exemptions for electric vehicles (EVs) and vehicles for persons with disabilities (PWDs).

In a statement this evening, its minister, Datuk Seri Wee Ka Siong, revealed that:

  • Electric motor vehicles or electric vehicles will enjoy this exemption from Jan 1 to Dec 31, 2025.
  • This vehicle licence exemption is given only to full EV vehicles, whether powered by battery, or by fuel cells.
  • The exemption is not applicable to hybrid vehicles, which are equipped with either petrol or diesel-powered internal combustion engines.
  • The application for the exemption begins tomorrow.

For vehicles for persons with disabilities (PWDs):

  • The exemption is only applicable to motor vehicles that have been specially modified for the use by PWDs.
  • For motor vehicles that are not specially modified, the exemption is only given to completely knocked down (CKD) vehicles and national cars.
  • Eligible motor vehicles must be registered and licensed under the PWD’s name. The owner must be registered with, and in possession of a valid PWD card issued by the Social Welfare Department (JKM).
  • The exemption is also extended to motor vehicles registered and owned by PWD parents/guardians, or PWD spouses, with the condition that the PWD is also registered with JKM.
  • Application for this exemption will begin on March 15.

“Eligible vehicle owners who have already obtained a motor vehicle licence (new or renewed), after Jan 1 but before the starting date to apply for either exemption with the Road Transport Department (RTD), can surrender their motor vehicle licence and be entitled to a rebate of an amount that will be prescribed,” added Wee.

“Subsequently, the vehicle owner or representative can proceed to apply for the motor vehicle licence exemption.”

He said members of the public could contact the RTD for more details and information on the implementation of this incentive.

During the tabling of Budget 2022 in October of last year, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said that the government saw the potential of EVs in helping to reduce air pollution.

As such, the sale of EVs in Malaysia was now completely exempt from import duty, excise duty and sales tax.

As per the tabling of the budget, EVs were also supposed to benefit from 100 per cent road tax exemption, while buyers were to enjoy income tax relief of up to RM2,500 for EV charging, whether through individual purchase of a home charger, or through a subscription plan.