KUALA LUMPUR, Aug 5 — The government is exploring the optimal mechanism for a proposed electric vehicle (EV) levy to support the development of a nationwide charging infrastructure, said Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani.
During the Dewan Negara session yesterday, he said the government has not decided to impose an EV levy and is assessing implementing mechanisms.
“We did not say that we will impose the proposed EV levy on the public. We are still looking into the most appropriate mechanism. However, if those costs are imposed on manufacturers, they will ultimately pass them on to consumers.
“The question is at what level the charges should be set, how much they will amount to, and how much longer the government can continue providing subsidies,” he told reporters on the sidelines of an RHB Bank Bhd conference here today.
Johari emphasised that the government has provided numerous subsidies and must also build charging infrastructure.
“All these involve the cost of electricity, gas, coal and other inputs. This needs to be understood. Many people fail to appreciate the broader picture because they only see one side of the issue,” he said.
Johari added that the government must consider the bigger picture to ensure that both EVs and internal combustion engines coexist.
“Malaysia also remains reliant on gas and coal-fired electricity generation. As such, the development of the EV ecosystem must take into account the cost of electricity supply and the infrastructure required.
“The government is also operating under a fiscal deficit. When we are running a deficit, how are we going to fund it? Where will the money come from? One option is to impose a levy on vehicle manufacturers.
“However, if manufacturers are charged, they will ultimately pass the additional costs on to consumers,” he said.
During the Dewan Negara session yesterday, the minister also said the government is considering a levy on every EV sold, which would fund Malaysia’s public EV charging network, due to the government’s constraints in financing a nationwide public charging infrastructure on a scale such as China’s.
He was responding to a supplementary question from Senator Datuk Leong Ngah Ngah on how prepared the government is for the growing adoption of EVs.
“We may impose a levy on every EV sold and channel the proceeds into a dedicated fund to build public charging stations because we cannot rely solely on vehicle manufacturers or distributors to undertake such investments,” said Johari.
