Gov’t studying new ways to stop road tax leakages

Gov’t studying new ways to stop road tax leakages

The transport ministry is looking at new ways to plug revenue leakages from road tax collection, transport minister Anthony Loke said, adding that the ministry is also holding discussions with the JPJ to ensure the mechanism selected would not burden the people, especially those living in rural areas.

“We will look at other initiatives as such the integration of customs information system with mySIKAP information system as well as amendments to tighten the laws to conduct enforcement and prosecution on vehicle owners who renew their road tax outside their registration areas,” he told the media, reported by Bernama.

Earlier this week, JPJ revealed that leakages in revenue collection from road tax renewal exceeded RM50 million from January to August this year, with more than 50% of the renewal transactions made in Sabah, Sarawak, Labuan and Langkawi involving vehicles registered and used outside of the states. Road tax is lower in those areas than in Peninsular Malaysia.

“While we are still studying the platform to renew road tax, such transactions could still be carried out as usual,” said Loke.

This is reiterating the earlier order from the ministry to review JPJ’s move to stop road tax renewals at post offices for vehicles with engine capacity of 2,000 cc and above at all post offices in Sabah, Sarawak, Langkawi and Labuan. The move caused some difficulty for East Malaysian vehicle owners, especially those living in rural areas with no nearby access to JPJ offices.

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • panjang on Sep 06, 2019 at 10:01 am

    Or…maybe u should consider studying the current roadtax structure rather than holding on to the current structure. Make it same for all no matter where we live in My…after all we are 1 Malaysia.

    With ‘no more’ subsidy soon, be fair on the roadtax is the next smart thing to do. People whom uses big engine either have no choice or can afford it. Only minor people whom can actually afford the cost but chooses to cilok. The figure is huge coz the high roadtax structure, the number of vehicle is low. Dont tell me there are millions of Viva cilok their roadtax.

    Like or Dislike: Thumb up 12 Thumb down 1
    • Ikhwan Ramli on Sep 06, 2019 at 2:33 pm

      how long is the abang abangs going to cheat the Government with road tax fraud? Help them so much and yet, they want to tipu the Government of revenue

      Like or Dislike: Thumb up 2 Thumb down 2
      • redpilled on Sep 06, 2019 at 5:20 pm

        Not many abangs can cheat la. KWSP stats show 80% of abangs paid below 2k coz underpaid by greedy taukays… so how to afford big cars…

        Like or Dislike: Thumb up 4 Thumb down 0
        • sam123 on Sep 06, 2019 at 7:34 pm

          Roadtax must be measured by Resale Value RV x 0.1%… Contoh nye, myvi 50k roadtax bayar rm50/thn. tax the rich.

          Like or Dislike: Thumb up 7 Thumb down 0
    • redpilled on Sep 06, 2019 at 5:41 pm

      I would be very happy if they change to a linear rate for both east n west Malaysia – so if 1.6L issay 100/ year, then 3.2L is 200/year….

      Wishful thinking.

      Like or Dislike: Thumb up 4 Thumb down 0
  • Amran on Sep 06, 2019 at 10:10 am

    before JPJ implement anything new. its best JPJ to catch 1st, all culprits & tax evaders blatantly breaking the law. handcuff, saman them, keluar waran dan charge them di mahkamah.

    Such shameful treason not deserved in Malaysia-

    Like or Dislike: Thumb up 10 Thumb down 1
  • 1.5Turbo, Road Tax RM90.
    but can go beyond 170hp/250nm.

    2.4L NA, Road Tax RM780.
    Honda Accord – 170hp/250nm.

    This is Road Tax Leakage.

    Like or Dislike: Thumb up 15 Thumb down 3
  • The Truth Always Prevails on Sep 06, 2019 at 10:19 am

    I hope this happens soon. Government is losing billions per year.

    This is because all the Datuk datuk and Tan Sri Tan Sri in Semenanjung all use Sabah Sarawak Road tax and are cheating the Government billions per year.

    I give you an example. 9 out of 10 Bentleys in KL all use Sabah and Sarawak Road Tax. For 6750 CC, instead of paying Rm18,000 per year road tax, they only pay RM3000 Sabah Sarawak road tax. Government loses RM15,000 per year on 1 Bentley alone.

    Calculate that amount with the hundreds of Bentleys, Ferraris, Porsches etc….LHDN loses RM billions per year.

    The previous Government knew about this problem the past 20 years but never took any action because all the big shots, Tan Sri Tan Sris and Datuks Datuks were all their cronies.

    Bravo for this action. Well done.

    Like or Dislike: Thumb up 4 Thumb down 12
    • Paul Tan on Sep 06, 2019 at 2:27 pm

      Anthony Loke said over RM50 million… not billions :)

      Like or Dislike: Thumb up 7 Thumb down 2
      • Thanks for correcting our perennially lying fake news troll who can’t count to save his life. You da man!

        Like or Dislike: Thumb up 5 Thumb down 1
      • Ikhwan Ramli on Sep 06, 2019 at 3:00 pm

        Loke simply say so that he does not want to alarm people. But logically, do the maths.

        Nearly every AP holder does this nonsense for their 3000CC and above customers.

        Each AP holder already got few hundred customers.

        Calculate that with the berpuluh AP holders…..mana RM50 million cukup?

        Like or Dislike: Thumb up 1 Thumb down 3
        • Avenger on Sep 06, 2019 at 5:40 pm

          So he is either;
          1) lying
          2) clueless about what he said
          3) misleading
          4) protecting ‘someone’
          5) all the above

          Like or Dislike: Thumb up 6 Thumb down 2
        • Aduyai on Sep 06, 2019 at 7:56 pm

          He mentioned ‘Exceed 50mil’
          51mil >50mil
          1bil >50mil

          Where were u during primary school math class?

          Like or Dislike: Thumb up 3 Thumb down 0
    • redpilled on Sep 06, 2019 at 5:29 pm

      So you’re implying the the handful of datuks/ tansris have more big cc cars than the people that control the biggest pie of the economy and outnumber everyone else in the 50 richest malaysian list?

      Like or Dislike: Thumb up 1 Thumb down 0
  • The Truth Always Prevails on Sep 06, 2019 at 10:20 am

    All our AP holders have runner boys to get Sabah Sarawak road tax for rich Semenanjung cars owned by rich people

    We help the AP Abang Abang to get rich by giving them business, but they in turn try to cheat the Government of billions on road tax fraud.

    End of the day LHDN loses billions per year from these frauds, we rakyat get lesser from the Government ie less schools and hospitals built.

    Like or Dislike: Thumb up 3 Thumb down 1
  • Logical Deduction on Sep 06, 2019 at 10:22 am

    Why need to study when the answer is so OBVIOUS???? Just fking standardise the roadtax between both sides!!!!

    If a standard car road tax rate currently set at RM90(Pen) and RM72(S&S), just fking set the median rate of RM81 for both sides!!!!

    You don’t need to do a fking useless study to tell you that! Are our fking ministers incapable to think, need some professor to tell them that?!?! WTH!!

    Like or Dislike: Thumb up 26 Thumb down 5
    • ganniey on Sep 06, 2019 at 12:18 pm

      Past 60year Gahmen, past ministers Ok je. ministers baru mmg tak tau buat keje #cariPahala

      Like or Dislike: Thumb up 10 Thumb down 1
    • msia driver on Sep 06, 2019 at 12:54 pm

      why just hassle
      just standard both same price, that all

      Like or Dislike: Thumb up 3 Thumb down 2
      • Fair to say. Standardize roadtax for cars. East Malaysia use alot of offroad vehicles. So only ladder frame SUV and pickup trucks roadtax should be cheaper . If the roads are so poor in condition who in the right mind will use powerful sports car and luxury sedan in such places.

        Like or Dislike: Thumb up 0 Thumb down 0
    • choha on Sep 06, 2019 at 2:59 pm

      ppl in s&s drive on kampung roads not highways like in malaya, is it fair to standardize the road tax? use ur fking brain

      Like or Dislike: Thumb up 6 Thumb down 4
      • Calvin on Sep 06, 2019 at 5:41 pm

        People in East MY will have the longest toll-free highway soon. Don’t be a selfish a-hole.

        Like or Dislike: Thumb up 3 Thumb down 2
        • kadazan warrior on Sep 06, 2019 at 6:12 pm

          And their highway quality is the same as all the bad highways in Johor. it is nowhere near PLUS standard. east malaysians deserve to pay cheaper tax.

          Like or Dislike: Thumb up 2 Thumb down 0
          • Ghani on Sep 06, 2019 at 7:36 pm

            A significant portion of PLUS is in Johor. Are you saying that PLUS highway in Johor is not the same PLUS highway or Johor highway isn’t really as bad as you say? Make up ur mind la

            Like or Dislike: Thumb up 2 Thumb down 2
          • kadazan warrior on Sep 07, 2019 at 1:09 pm

            PLUS is not the only highway in johor right?? Bodo. pan borneo is more like the pasir gudang highway.

            Like or Dislike: Thumb up 0 Thumb down 0
  • Henry on Sep 06, 2019 at 10:28 am

    Previous Government Ministers ALL use Sabah Sarawak road tax for their cars like Lexus LX570.

    Previous Government cronies all use Sabah Sarawak road tax

    Like or Dislike: Thumb up 7 Thumb down 7
    • Lolwhut? on Sep 06, 2019 at 12:17 pm

      Previous government ministers cars are belong to government, So what does it matter if reg in Peninsular or S&S?

      Like or Dislike: Thumb up 5 Thumb down 1
    • panjang on Sep 06, 2019 at 12:30 pm

      Its fine becoz they low paid, and din earn much. Previous Government Ministers. Previous Government cronies. Smart them…

      Like or Dislike: Thumb up 7 Thumb down 0
  • Ah Chong on Sep 06, 2019 at 10:33 am

    I still think vehicles should be taxed based on the impact it has on road/pollution. Example weight/size + emission = total tax.

    Cars should be tested every few years to check the emission too, so if you don’t service your car and it puffs out smoke, you get taxed more.

    This means an old clunker is likely forced to pay more roadtax than a new hybrid. I think it’s a fair system, since everyone breathes air. Will probably get a lot of hates for this but I prefer fresh air over comment thumbs up.

    Like or Dislike: Thumb up 17 Thumb down 2
    • st3wp1d on Sep 06, 2019 at 12:13 pm

      yup..i second that..who polluted more must pay the price more

      Like or Dislike: Thumb up 0 Thumb down 0
      • Ah Chong on Sep 06, 2019 at 4:29 pm

        Yeah, and it’s fair for all, and we have freedom, no need to introduce car end-of-life law too. You don’t like to get tax? Buy new efficient and clean car; Got an old car that has sentimental value? Fix it nicely pay the tax and keep it.

        I’m also in favour for taxing petrol just a little bit, you know, the more you drive the more you pay. But people will burn me on a stake for that.

        Like or Dislike: Thumb up 1 Thumb down 2
  • Rosman on Sep 06, 2019 at 10:52 am

    Tengok ini muka tembok macam tak tau buat keje. Hasil 1 tahun dlm kementrian pun memang dia tak tau buat keje. PaulTan boleh tukar gambar lain tak?

    Like or Dislike: Thumb up 8 Thumb down 3
    • Norlia on Sep 06, 2019 at 12:41 pm

      Betol betol betol. i sangat rindu Liow… citer dia pasal durian dgn musang king je. hati i sejuk….

      ah Loke nie suka kecoh xpasal2…rilek le broo. nombor plate la, Grab la, ni pasal roadtax.. huhu3

      Like or Dislike: Thumb up 9 Thumb down 0
  • Not Toyota Fan on Sep 06, 2019 at 11:24 am

    Ah Loke too busy selling number plates, forcing Grab drivers to get PSV license & bengang with Gojek. Where got time to even think of closing loopholes like this.

    JPJ is right to do this. See the number of luxury and exotic cars in KL that has these States number plates.

    Like or Dislike: Thumb up 7 Thumb down 1
    • Sumerah on Sep 06, 2019 at 12:59 pm

      Ah Loke reali rajin lar, but tolong abolish AP dulu ye. Kne cuci rumah kotor uzur usang 61 tahun tinggalan Unker kudis..siann si Ah Loke.

      Like or Dislike: Thumb up 8 Thumb down 1
  • Ben Yap on Sep 06, 2019 at 12:08 pm

    to have 0 leakages is not to charge any road tax.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Does He Care? on Sep 06, 2019 at 12:54 pm

    Close this loophole and dont let anyone get by it, even if its ur collegue or families YB Minister. A lot of luxury car using East Malaysia plate number. Commoner usually pay their due with diligence.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Amran on Sep 06, 2019 at 1:36 pm

    Menteri didahulukan, kroni diutamakan

    Like or Dislike: Thumb up 6 Thumb down 0
  • kereta_lembu on Sep 06, 2019 at 2:17 pm

    I think we need to restructure the road tax charges based on car price and not based on engine capacity. There are many old cars with higher engine capacity but nobody wants to buy them because the road tax charged does not make it desirable or economical to own them. Also, some people are forced to hang on to their old cars because they cannot afford a replacement. We can also get rid of the issue where people say, you can buy a 1800cc Mercedes and get away with cheaper road tax. I feel, just like insurance, when the price of the car depreciates, the road tax price should as well.

    Charging road tax based on engine capacity is not the way forward. People are not getting free fuel, so it is not a problem if they have a bigger capacity car for their needs. They just need to pump more petrol at their own expense.

    If you want to talk about being environmentally friendly, I think it is also not fair (at the moment) because most hybrid, ev or phev cars are not easily attainable. Not everyone can afford those type or cars due to the pricing and cost of keeping them. Until the day, most people can afford them, then we should push towards that compared to fossil burning cars.

    My conclusion is, charging roadtax based on engine capacity is no longer valid these days.

    Like or Dislike: Thumb up 22 Thumb down 1
    • Asmadi on Sep 06, 2019 at 4:40 pm

      Spot on!!! Just like insurance.

      Like or Dislike: Thumb up 1 Thumb down 0
    • puppy on Sep 06, 2019 at 6:32 pm

      As the name suggest, Road Tax shall be measured by the foot print of the car as how much the road is ‘used’ by the car. Or it could be measured by weight as how much damage to the road caused by the vehicle. Name pollution tax if measured by the emission. Name value tax if measured by the residual value of the car. In short, name something relevant and explain why it is taxed and how it is measured.

      Like or Dislike: Thumb up 2 Thumb down 2
    • Bodoh… why you off topic? Whatever calculation you come out with, the issue arise is because different places charge different road tax, hence the leakage.

      People sakit kepala you go and rub the hand.
      Talk about environment and polution? You crazy ah? Later all have to go puspakom inspection then you know. Please use brain lah.

      Like or Dislike: Thumb up 0 Thumb down 1
  • Guigui on Sep 06, 2019 at 3:53 pm

    Menteri Nombor Plat

    Like or Dislike: Thumb up 0 Thumb down 0
  • Road tax, import duties, ap..all these are only to milk Malaysian motorist..excessive!

    Like or Dislike: Thumb up 0 Thumb down 0
  • J.Lee on Sep 06, 2019 at 5:39 pm

    Just standardize the road tax price, one country one price. Simple solution.

    Like or Dislike: Thumb up 0 Thumb down 0
    • Good idea. Or can use the footprint area of a vehicle. The bigger u use the area on the road the more expensive the road tax will be. And weight of the vehicle. As heavier ur vehicle as same as heavier the the roadtax will cost u.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Please charge road tax based on vehicles price not according to CC…luxury cars e.g. Mercedes & BMW above 200k pay min roadtax for 1.5 engine.. While old car worth 5k need to pay 4k for roadtax..

    Like or Dislike: Thumb up 2 Thumb down 0
  • Kuek vijin on Sep 07, 2019 at 9:46 am

    Jpj actually earn more with the loophole, people buy luxury car bcz of the loophole of cheaper roadtax in sqbah sarawak, imagine when this lopphole is blocked, people will not buy high cc car at the end of the day jpj collect fewer roadtax, what i say is base on economics supply and demand

    Like or Dislike: Thumb up 0 Thumb down 0
  • vVivi Zurianti on Sep 07, 2019 at 6:46 pm

    abolish All road tax. Collect tax via petrol instead. Then, everyone can own their car, but think twice before driving and pump petrol.

    Maybe could lesser traffic congestion too…..

    Like or Dislike: Thumb up 2 Thumb down 3
  • Sohai on Sep 07, 2019 at 7:36 pm

    Why study after annoucement and retract?
    No cohesiveness in the governemnt machinary.

    Alot of times, leakage is due to corruption in the government officers. Can you sort that out?

    Let me give you 1 simple solution. Make the road tax amount the same for all states.

    Given that governemnt lost 50mil a year, you have enough points to justify a ROI for alot of solutions. I dont see any excuse.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Vedder on Sep 09, 2019 at 11:12 am

    The government can’t even fill holes on the road and they want to talk about leakages. Fix the bloody roads first la!!!!!!

    Like or Dislike: Thumb up 1 Thumb down 0
    • stastasta on Sep 13, 2019 at 9:41 am

      most roads are under state not federal jurisdiction. why u blame federal gov ? are u stupid or ignorant?

      Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required