Kuala lumpur: The Ministry of Investment, Trade and Industry (MITI) is actively exploring the implementation of an electric vehicle (EV) levy as a means to bolster the development of a comprehensive nationwide charging infrastructure for EVs.

According to BERNAMA News Agency, MITI Minister Datuk Seri Johari Abdul Ghani emphasized during the Dewan Negara session that the government has yet to finalize a decision on the proposed EV levy, with ongoing evaluations to determine the most effective approach. He highlighted the complexities involved, noting that if the costs are transferred to manufacturers, they may ultimately be borne by consumers.

Johari explained the multi-faceted nature of the issue at a conference organized by RHB Bank Bhd, pointing out the government's current provision of subsidies alongside the need to develop charging infrastructure. He underscored the importance of understanding the associated costs of electricity, gas, coal, and other inputs that are often overlooked in the public discourse.

The minister stressed the necessity of considering the broader picture to ensure a balanced coexistence of EVs and internal combustion engines in Malaysia. He noted the country's reliance on gas and coal-fired electricity generation and the fiscal constraints posed by a budget deficit, which complicate the funding of such initiatives. One potential solution discussed was the imposition of a levy on vehicle manufacturers, though concerns remain about the eventual passing down of costs to consumers.

In response to Senator Datuk Leong Ngah Ngah's inquiry about the government's readiness for the increasing adoption of EVs, Johari mentioned the potential establishment of a fund to expand the public EV charging network through a levy on each EV sold. This approach, he explained, would address the government's limited capacity to finance a large-scale public charging infrastructure akin to those in countries like China, and would reduce the reliance on manufacturers and distributors for such investments.