US, Europe use public funds for EV charging. Should Malaysia? [WATCH]

KUALA LUMPUR: The concept of implementing a levy on electric vehicles (EVs) to finance the expansion of public charging infrastructure is not to be dismissed lightly, despite public opposition. In the United States and Europe, government policies and public funding drive the development of EV charging networks. Industry expert Datuk Shahrol Azral Ibrahim Halmi noted that most US states impose an EV levy to compensate for lost fuel tax revenue and to promote EV adoption, while some of this fee is allocated for EV charger grants.

In the European Union, member states must provide at least 1.3 kilowatts of publicly accessible charging capacity for each battery-electric vehicle in their national fleet. As a result, over a million public charging points exist across Europe, surpassing requirements in nearly all member states. To ensure the levy is used appropriately, laws and regulations must be put in place.

In Europe, the Alternative Fuels Infrastructure Regulation (Afir) is legally binding and backed by a €1 billion funding program. However, Malaysia's situation differs, as fuel is tax-free and subsidized. EV brands enjoy tax holidays until 2027, while the government relies on other income sources to fund public charger expansion.

Some automotive stakeholders argue that smoother approval processes are needed to encourage charger implementation. Pekema, an industry association, suggests that EV brands that have benefited from government support should contribute to funding the EV charging network.