Ministry of Transport to review road tax structure, but won’t lower fees – Anthony Loke

Road tax getting a little too expensive to swallow? Sorry, it’s not going to be getting cheaper anytime soon. According to Anthony Loke, road tax fees are one of the government’s biggest source of income, generating roughly RM3 billion per year, so any decision to lower it will only bring “negative impact” to the country.

With that being said, the government is considering to review the structure of the road tax fees, New Strait Times reports.

“There is a need to conduct a comprehensive review on the road tax structure, but it must be understood that road tax is one of the biggest revenues for the government,” Anthony Loke said during his ministry’s winding-up speech on the royal address at the Parliament yesterday.

“Currently, it generates almost RM3 billion. So far, there is no decision to lower it [road tax]. Any decision that could decrease the country’s revenue, such as lowering the road tax fees, would only create a negative impact,” he added.

RELATED: Still confused about the road tax situation? Anthony Loke answers your questions

Road tax sticker for the BYD Atto 3.

Additionally, the ministry is also looking to conduct a comprehensive study on the road tax structure for electric vehicles (EV). “There should be a comprehensive study on the structure of fees, so it is aligned with our policies,” Loke said.

“In our efforts to encourage the use of EVs, there should be incentives from various aspects such as competitive road tax fees, and facilities such as charging stations,” he added.

Currently, fully-electric vehicles in Malaysia are completely exempt from road tax until the 31 December 2025. After which, the road tax for EVs will be calculated by the motor’s output, besides the usual body style classifications – where SUVs (or Jeep according to official language) are a little cheaper.



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