The government has made some changes to the private vehicle road tax structure, with effect tomorrow – 1st January 2007. Road tax rates have been lowered by amounts between 4% TO 33%. There has also been some changes to the excise duty structure, which I know would come as good news for certain marques like Audi, whose A6 has been suffering ever since the flagship went up from 2.8 litres to 3.0 litres.

The following table illustrates the new road tax structure for the Peninsular Malaysia for vehicles that run on petrol:

Engine Capacity (cc) Current New
< 1,000 RM30 RM20
1001 – 1200 RM65 to RM80 RM55
1201 – 1400 RM80.10 to RM100 RM70
1401 – 1600 RM100.10 to RM127.50 RM90
1601 – 1800 RM255.35 to RM325 RM200.40 to RM280
1801 – 2000 RM325.35 to RM395 RM280.50 to RM380
2001 – 2500 RM396 to RM895 RM381 to RM880
2501 – 3000 RM897.50 to RM2145 RM882.50 to RM2130
3001 – 5000 RM2149.50 to RM11145 RM2134.50 to RM11130

The following table illustrates the new road tax structure for the Peninsular Malaysia for vehicles that run on diesel:

Engine Capacity (cc) Current New
< 1,000 RM30 RM20
1001 – 1200 RM130.30 to RM190 RM130
1201 – 1400 RM190.40 to RM270 RM140
1401 – 1600 RM270.40 to RM380 RM180
1601 – 1800 RM456.84 to RM624 RM400.80 to RM560
1801 – 2000 RM624.84 to RM792 RM561.10 to RM780
2001 – 2500 RM794.40 to RM1992 RM782.20 to RM1880
2501 – 3000 RM1998 to RM4992 RM1886 to RM4880
3001 – 5000 RM5002 to RM26592 RM4890.80 to RM26480

Once again, the most changes are to the category of cars with engine capacities of 1600cc and below. Previously the government slashes the road tax of such cars into half. This time, they’ve set a fixed road tax rate for every 200cc of increase in engine capacity, so basically someone with a 1600cc engine saves more than someone with a 1401cc engine. To me, there is not really that much savings for the common folk who drive cars that are generally below the 1.6 litre engine capacity category. You save mostly about RM30 per year – hardly an amount that dents or improves your spending capacity in any way if you spread the savings out over 12 months – that’s only about RM2.50 savings per month, or barely more than a litre of RON97 petrol.

However, there is also savings for business vehicle road tax which is not published in the newspapers – this is a welcome relief for business owners who run a fleet of high engine capacity diesel trucks. In the diesel private registration category the biggest cuts are for vehicles with diesel engines of 1.8 litres and below, which I doubt means anything to anyone – how many of you know of diesel engines with low cubic capacities? Even the Wira diesel runs a 2 litre engine, and the Citroen ZX diesel is 1.9 litres, though there are smaller capacity ZX diesels running around overseas.

For me personally, my 1,999cc car road tax used to be RM394.70, now it should be about RM379.70 or so, a humongous life changing saving of RM15!!! OMG!!!1

Here is the full table scanned from The Star, click to enlarge:

newroadtaxstructure_s.jpg

Happy new year to all.