Government considering flexible road tax payment

Government considering flexible road tax payment

In line with ongoing insurance detariffication measures, the government is studying the possibility of implementing a flexible road tax payment system for motorists. Transport minister Datuk Sri Liow Tiong Lai said the move will see road tax charges be calculated according to motorists’ vehicle condition, mileage and any outstanding traffic offences.

In the report by NST, Liow suggested prudent motorists will likely benefit from a lower road tax charge compared to those who are more reckless on the road. This is before taking into account the motorists’ mileage and vehicle condition.

“With the advancement of technology, we can now know road users’ behaviour, and also their mileage, which is going to reflect into their road tax charge. We are confident that we can implement that in the future,” said Liow.

He did not provide further details on how such a system will operate or even a stipulated timeframe for its implementation. Currently, Malaysia’s road tax payment system is pretty rigid, and is based on tier-based structure following the vehicle’s engine capacity. A deeper insight into the system can be found, here.

Would you welcome such a road tax payment system that rewards vigilant motorists with lower charges? Let us know your thoughts in the comments section below.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • I like the Idea thought, you drive more you pay more. So everyone can own a Supercar now!

    Like or Dislike: Thumb up 26 Thumb down 2
    • Cendol on Jul 19, 2017 at 6:45 pm

      But fix tt printer 1st, alredi 2weeks waited road tax disc baru. Borak minum petang, shok sendiri after puhleeez.

      Like or Dislike: Thumb up 28 Thumb down 9
      • bodoNYA on Jul 20, 2017 at 11:35 am

        semua Barang Naik … I’m paying 500 more for my insurance premium now under the new scheme… daammmmn

        Like or Dislike: Thumb up 4 Thumb down 0
    • Periasamy on Jul 19, 2017 at 6:47 pm

      Instead of all this, first sort out your fake road tax problem. Already came out in the media, the syndicated have rolls after rolls of ORIGINAL blank road tax.

      How did the syndicates get the original road tax from?

      First investigate this big huge problem. then do all this other stuff like flexible road tax etc.

      Government loses billions per year from fake road tax. Guess who is selling the original rolls?

      Like or Dislike: Thumb up 38 Thumb down 36
    • Missing Katak on Jul 19, 2017 at 7:07 pm

      Dont execute then stop or delay again

      Like or Dislike: Thumb up 14 Thumb down 0
    • Simple stuff like printing plastic road tax also fail, now want to talk about sophisticated ones.

      Near election time, all kinds of stupid ideas tend to come from politicians.

      Like or Dislike: Thumb up 45 Thumb down 3
    • wawasan2020 on Jul 20, 2017 at 9:32 am

      lol bro,means you not able to own a supercar now because of road tax?how abouy the loan repayment?

      Like or Dislike: Thumb up 3 Thumb down 0
  • Seemingly authorities only interested in everything give them more revenue for our country coffer.

    Why not revise our highly excessive car taxes and duties?

    Cheaper car’s price will lead to lower insurance premium. Why not bother?

    Perhaps, gomen noticed that many sedans downsizing and it will hit gomen’s revenue?

    Well-loved. Like or Dislike: Thumb up 53 Thumb down 2
  • Leafable on Jul 19, 2017 at 6:38 pm

    Good idea. But why not adapt CO2 calculation? It’s a proven system been use by lots of countries to deter people owning polluting vehicle.

    Like or Dislike: Thumb up 41 Thumb down 3
    • John Snow on Jul 19, 2017 at 9:55 pm

      Indeed, other countries use CO2 and pollution calculation, while driving penalties are saved for the insurance premiums.

      Like or Dislike: Thumb up 12 Thumb down 0
    • If they r smart they wld hv done it already. With millions of substd vehicles n low quality fuel here they cld hv collected billions.

      Like or Dislike: Thumb up 15 Thumb down 0
      • lilytan on Jul 20, 2017 at 9:53 am

        Unfortunately lobbyist at potong n petronasty are smarter. If msia uses CO2 based roadtax then disadvantage their lousy engine n dirty fuel. Profit will drop. No more fat bonus.

        Like or Dislike: Thumb up 6 Thumb down 1
      • alldisc on Jul 20, 2017 at 10:38 am

        That’s Malaysia. Charge tax according to your mileage. That’s hilarious.

        Like or Dislike: Thumb up 6 Thumb down 0
    • lolpanda on Jul 20, 2017 at 4:55 pm

      a pollution-based calculation is actually a brilliant idea that encourages cleaner vehicles on the road.

      however, motorcyclists will be hit the worst because even modern motorcycles produce much higher pollutants at 416% more hydrocarbons, 3,220% more oxides of nitrogen and 8,065% more carbon monoxide vs your average car.

      this will definitely make a certain demographic unhappy and is likely why a pollution-based tax system won’t be implemented here in a long, long time.

      in an ideal scenario, the alternative for driving should be public transportation, not motorcycles.

      Like or Dislike: Thumb up 0 Thumb down 0
  • thepolygonal on Jul 19, 2017 at 6:39 pm

    Only renew every 100k km… boleh?

    Like or Dislike: Thumb up 16 Thumb down 1
  • Wahub on Jul 19, 2017 at 6:48 pm

    CR-V 1.5 rm100 roadtax. Terbaik!

    Like or Dislike: Thumb up 25 Thumb down 1
  • Raja celup on Jul 19, 2017 at 6:57 pm

    Flexible road tax payment will likely benefit those ‘sambung bayar’ cars since less usage OTR …

    Like or Dislike: Thumb up 6 Thumb down 1
  • Dari rakyat on Jul 19, 2017 at 6:57 pm

    Mampoihhhh…..orang miskin yang ada motor guna hari2…akaiii semua

    Like or Dislike: Thumb up 11 Thumb down 0
  • Nakoruru on Jul 19, 2017 at 7:08 pm

    Based on distance? Can… just abolish the tols cause i travel 90% private roads kesas everyday n already paid for it. Those are not government roads n you want to road tax me?

    Like or Dislike: Thumb up 40 Thumb down 0
  • Nakoruru on Jul 19, 2017 at 7:14 pm

    Based on car condition? So older cars higher roadtax? Thank you for making poorer people even poorer…. Does this hav anythomg to do with secondhand car dealers with idle cars not needing to pay or some datuk with collection of cars trying to save money?

    Like or Dislike: Thumb up 28 Thumb down 0
  • Anything But Toyota, Greedy Honda, Nissan Tidur on Jul 19, 2017 at 7:16 pm

    It is time to make 2000cc and above car roadtax more affordable. My 325i’s roadtax is RM874 and my Kelisa is only RM20. And I use my Kelisa more.

    Like or Dislike: Thumb up 1 Thumb down 13
  • Malaysians are so naive. Elections is just around the corner. Time and again “goodies” to the masses are being dolled and the gullible got sucked into all this. Pity Malaysians!!!

    Like or Dislike: Thumb up 24 Thumb down 1
  • Need to review bavk roadtax charge. Audi Q3 roadtax only rm 90 compare to my 1.8 inspira rm 276. Audi more expensive car. Nowdays all carmaker produce smaller engine capacity with turbo. Its not fair

    Like or Dislike: Thumb up 10 Thumb down 3
  • Dolan on Jul 19, 2017 at 8:48 pm

    I rather have lower insurance premiums than lower road tax.

    Like or Dislike: Thumb up 28 Thumb down 0
  • Susukotak on Jul 19, 2017 at 9:37 pm

    instead of road tax better change it to permit payment.

    Like or Dislike: Thumb up 0 Thumb down 2
  • Jimmy on Jul 19, 2017 at 10:26 pm

    You use more, you pay more.
    You cause more pollution, you pay more.
    You cause more danger to others, you pay more.
    You drive more recklessly, you pay more.

    Very fair. Quickly implement. Welcome.

    And, why isn’t there RM40 per hour parking fee in city centre?

    Since USA is looking for more money, why don’t USA ask their traffic officers to go around summoning those illegal parkings?

    Like or Dislike: Thumb up 8 Thumb down 6
    • kononnye on Jul 20, 2017 at 8:56 am

      RM 40 parking per hour???

      1. Please consider how good is our nation public transport.
      2. Please consider what is our average income.

      Like or Dislike: Thumb up 6 Thumb down 2
  • matt farrel on Jul 19, 2017 at 10:40 pm

    is it true that the older the car, the tax gets more expensive? cause i’ve seen many kenari and kancil for sale, those 2 cars are suppose to have a tax of RM20 yearly, yet is shown that it costs RM100 tax on the geran, can somebody here explain?

    Like or Dislike: Thumb up 0 Thumb down 2
  • Don’t Be so creative and stick back with what it is now. Lower CC cars are for affordability and fuel consumption. Why not do better service and fix the problems with the current shortage situations. Find a solution, don’t blame and point fingers

    Like or Dislike: Thumb up 10 Thumb down 0
  • Henry on Jul 19, 2017 at 11:16 pm

    Tokkok. Who is this guy’s Advisers?

    Road tax should be based on the vehicle’s footprint instead of engine capacity. Larger vehicles take up more road space, therefore they must pay more. Lorries and buses can be given preference rates.

    Like or Dislike: Thumb up 7 Thumb down 0
    • Does larger vehicles refer to MPV, Mini Vans and SUV? Just so you know, many sedan nowadays were even longer and wider than those SUV and some MPV. For example, Mercedes S Class should pay more roadtax than Toyota Vellfire because merc are longer and wider than Vellfire (heights doesnt count as it doesnt consuming space). Therefore, merc need to pay more. Does it sounds relevant to you?

      Like or Dislike: Thumb up 0 Thumb down 0
  • Aero (Member) on Jul 20, 2017 at 12:22 am

    We all know how it goes.

    First the government will propose ‘something good’ which will ‘benefit’ the rakyat.

    They will use all kinds of ‘justifications’ and excuses.

    But secretly, there will be some udang di sebalik batu (hidden agenda).

    In the end, the rakyat will rugi somehow. Meanwhile, ‘someone’ or ‘some people’ will untung through some loophole.

    What to do.

    Like or Dislike: Thumb up 21 Thumb down 0
  • xoxox on Jul 20, 2017 at 8:42 am

    lol..it’s all about money…don’t too naive…
    motorists’ vehicle condition = $$ to inspect…
    mileage = more mileage means more $$
    any outstanding traffic offenses = can get more $$

    Like or Dislike: Thumb up 8 Thumb down 0
  • kononnye on Jul 20, 2017 at 8:50 am

    Another way to rip off rakyat again.

    Because now many of the car are downsizing engine with turbo such as Civic, CRV, BMW 5 Series and etc. Hence govt feel they have lost a percentage from these road tax.

    Civic used to be 2.0 = now 1.5
    CRV used to be 2.0 = now 1.5
    BMW 5 series used to be 2.5 – 3.0 = NOW 2.0

    Govt come out with this idea, kononnya is for rakyat pay lower tax. Later, your Kancil might pay even higher roadtax than BMW 5 Series, because your kancil car condition and etc.

    This might only benefit those buying supercar 5.0 – 6.0 liter. But not for middle class and below.

    Rakyat already at the edge of cliff. Instead of coming with this kind of idea, why don’t first reduce all the unnecessary tax impose on car??

    Like or Dislike: Thumb up 11 Thumb down 0
  • Calculate based on mileage and vehicle condition? What cars are going to benefit from this? Not Proton and Perodua.
    It will only benefit Bentley, Ferrari, Lambo and Bugatti that are hardly driven except to perhimpunan.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Mr. Octopus on Jul 20, 2017 at 9:43 am

    JPJ collect road tax but JPJ don’t build or maintain roads… Go figure..

    Like or Dislike: Thumb up 5 Thumb down 0
  • Jeffrey Chew on Jul 20, 2017 at 9:53 am

    Let the insurance companies do it, go and fix your printer!

    Like or Dislike: Thumb up 3 Thumb down 0
  • Ben Yap on Jul 20, 2017 at 10:01 am

    since shortage of road tax disc and some drivers expired already, roadblock still get summon?

    Like or Dislike: Thumb up 1 Thumb down 0
  • Chris on Jul 20, 2017 at 10:50 am

    I see no point in the propose road tax. Even our
    current insurance scheme is not adhere to. Just renewed my insurance and the premium was following the old structure. Empty kettle makes the most noise. Implementation and execution is beyong thoughts and words.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Borneo Darul Seram on Jul 20, 2017 at 11:02 am

    why not scrapped the outdated road tax system based since post colonial era?
    why not implement on-the road tax system based on the following criterial?
    1. Annual renewal of vehicle registration (number) plate.
    2. Single digit number plate pays excess 300%, double digit number plate pays excess 200%.
    3. Special commemorate event number plate pays excess 300%.
    4. Motorised vehicle released lesser environment pollution enjoys lower tax.
    5. Motorized vehicle kerb weight, tax more on heavy vehicles.

    Like or Dislike: Thumb up 5 Thumb down 0
    • bangsar wan on Jul 20, 2017 at 11:06 am

      I support no.5, big lorries prone to damage tarred road surface creating potholes very often!

      Like or Dislike: Thumb up 5 Thumb down 0
  • AP Chin on Jul 20, 2017 at 3:15 pm

    Long overdue. A brand new RM400k mercedes E class is 2000cc & pays RM500 road tax. A 10 years old mercedes S350 (3,500cc), pays RM4,200 road tax. What’s the rational?

    Like or Dislike: Thumb up 2 Thumb down 0
  • C. P. MOHAN on Jul 20, 2017 at 4:38 pm

    My opinion is that ‘road tax disc’ should only be evidence that in this case insurance and vehicle ownership is legit and thus “road tax” charges imposed should be minimal. ‘Road tax’ is also outdated especially when we have various collecting forms through Taxes, duties, GST and even TOLL.

    Like or Dislike: Thumb up 1 Thumb down 0
  • jason on Jul 20, 2017 at 7:59 pm

    Waste of effort. Maybe lowering the tax for car for good driver may be better in keeping the streets safe.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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