If the Malaysian government had not given enough reasons to purchase an electric vehicle (EV) with full exemption from import duty, excise duty, and road tax, then here is one more. Transport minister, Datuk Seri Wee Ka Siong announced yesterday that the Road Transport Department (JPJ) will be offering EV owners and persons with disabilities (PwD/OKU) full exemption from the motor vehicle licence fee.
Motor vehicles licence fee exemption for EV owners
Motor vehicles licence fee exemption for EVs wasn’t listed during the announcement of Budget 2022, thus we are getting first details about this incentive. To be clear, this incentive is only for vehicles powered exclusively by electricity and not for vehicles that have a hybrid system with an internal combustion engine (ICE) running on fossil fuel. So, despite Toyota calling the new Corolla Cross a hybrid electric vehicle, because it still uses an ICE as part of its drivetrain, it will not be eligible.
EV owners can apply for the licence fee exemption starting today, the 15th of February 2022. He also added that the exemption will begin on the 1st of January 2022 up until 31st December 2022.
If by chance you have already renewed your licence between 1st January 2022 and 14th February 2022, fret not because you can surrender your licence and be eligible for a rebate, but not a full refund. Ka Siong said “They or their representative may surrender the motor vehicle licence and be entitled to such a rebate of an amount as may be prescribed. Subsequently, the vehicle owner or representative can apply for the motor vehicle licence exemption.”
It seems that if you renewed your license before 1st of January 2022, you will not be eligible for the rebate.
Why the JPJ is late to introduce the exemption when it was supposed to take effect on the 1st of January 2022 is unknown. But this is a recurring trend with the JPJ as they were also supposed to exempt EVs from the road tax starting from the 1st of January 2022 as well, but at the moment, they have yet to prep their systems. This is causing delays with new EV registration as it has been put on hold indefinitely.
Motor vehicles licence fee exemption for PwD
Motor vehicles licence fee exemption for PwD was announced during Budget 2022. The fee exemption is only applicable if the vehicle has been specially modified for the use of the PwD. Otherwise, only locally assembled, or in other words, completely knocked down (CKD) and national vehicles are eligible.
Additionally, the vehicle driven by the PwD must be registered with the Social Welfare Department (JKM). But if the PwD does not own their own vehicles, they can register vehicles owned by parents, guardians, or spouses.
Lastly, the PwD must be registered themselves with JKM and possess a valid PwD/OKU identification card.
Application will open on the 15th of March 2022 and currently there is no validity period set. For those who have renewed their licence after the 1st of January 2022, you can return the licence and be eligible to a rebate, but not a full refund, when the application opens.
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