KUALA LUMPUR, Aug. 5 (Xinhua) -- The government is exploring the optimal mechanism for a proposed electric vehicle (EV) levy to support the development of a nationwide charging infrastructure, Investment, Trade and Industry Minister Johari Abdul Ghani said on Wednesday.
The government has not decided to impose the proposed EV levy and is still assessing the most appropriate mechanism as it faces constraints in financing a nationwide public charging infrastructure, Johari told a press briefing.
"We did not say that we will impose the proposed EV levy on the public. We are still looking at 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 said.
Johari emphasized 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.
He said the government must consider the bigger picture to ensure that both EVs and internal combustion engines coexist and take into consideration that Malaysia also remains reliant on gas and coal-fired electricity generation, meaning the development of the EV ecosystem must take into account the cost of electricity supply and the infrastructure required.
"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," he said. ■
