Malaysia should abolish road tax in Budget 2023 to reduce burden on rakyat, as it is “tax on tax” – senator

Malaysia should abolish road tax in Budget 2023 to reduce burden on <em>rakyat</em>, as it is “tax on tax” – senator

Unless you happen to have a car with a large engine displacement, any thought of road tax only comes to mind when it’s time to pay the annual fee, and even then, all the attention is on how much car insurance costs. After all, a yearly road tax of RM20 for a vehicle with a 1.0 litre engine or RM70 for a 1.3 litre engine (RM90 if it’s a 1.5 litre mill) isn’t really going to dent your wallet all that much.

Still, every ringgit counts, and running with that idea, senator Muhammad Zahid Md Arip has suggested to the government that it should abolish vehicle road tax in order to ease the burden on the people. He said this is because the system currently in use is based on the concept of ‘tax on tax,’ as Sinar Harian reports.

He said that at present, vehicle owners are faced with a multi-layered system that taxes them via import duty, excise tax, SST and road tax. “Given that they have to pay taxes on multiple fronts, people, especially those living in the Klang Valley, seem to be under siege,” he said.

He added that most motorists in the Klang Valley have to use routes that are almost always subject to toll on a daily basis, hence the call to abolish the road tax in the upcoming budget.

Malaysia should abolish road tax in Budget 2023 to reduce burden on <em>rakyat</em>, as it is “tax on tax” – senator

“Malaysians cannot continue to be burdened with this ‘tax on top of tax’ and Budget 2023 is the best opportunity for the prime minister to make the people happy. I understand that the 2023 Budget consultation is currently underway, and I hope the government will consider this proposal,” he said in a statement earlier this week.

He said the proposal would be beneficial to the rakyat and the government as a whole. “The government can actually follow the United Kingdom, which has abolished road tax since 2015 and only imposes vehicle excise duty (VED) on vehicle owners, in implementing a new system,” he said.

“In order to cover the loss of revenue due to the elimination of this road tax, the government can consider reducing the fuel subsidy. This method is actually fairer to the people and the government, because it is aimed directly at eligible users, especially from the B40 group,” he explained.

Obviously, not having to pay road tax would benefit motorists (we can see those with 4.0 and 5.0 litre rides nodding happily in agreement), but there surely cannot be a free lunch for everyone. What do you think of the senator’s idea of implementing a VED system to replace the current – and outdated – road tax system? Share your thoughts with us in the comments section. As for the current road tax structure, here’s a detailed explanation of how it works.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • The bigger question would be... on Sep 15, 2022 at 12:39 pm

    …Why after 65 years of independence, we still cannot figure out how to produce roadtax that actually sticks to your windscreen without falling off.

    Epitomizes the issues of this country.

    Like or Dislike: Thumb up 33 Thumb down 13
    • Xie xie on Sep 15, 2022 at 12:55 pm

      Ur roadtax paper doesn’t have the sticker glue around it?

      Like or Dislike: Thumb up 16 Thumb down 0
    • Why not follow indon style, roadtax on plate, with extended validity instead of limit it to 1 year.

      Like or Dislike: Thumb up 5 Thumb down 6
    • pyraxle on Sep 15, 2022 at 1:23 pm

      But my roadtax actually sticks perfectly to my windscreen all year long, parked in open area at work & outside my house gate everyday somemore. I never encountered those problems.. Maybe the way you stick it? Gotta do it gently & patiently.

      Like or Dislike: Thumb up 9 Thumb down 5
    • Amran on Sep 15, 2022 at 2:43 pm

      Cakap senang je ini orang. Dulu jadik kjaan nape tak buat ye? Oh tau ada duit masuk takpe teruskan je bila dah tumbang semua pon tolak kjaan baru nak buat ni buat tu. Pirahhh PH bodoh!

      Like or Dislike: Thumb up 32 Thumb down 19
      • Ghani on Sep 15, 2022 at 9:25 pm

        Kesiann meroyan teruk pentaksub totok najip Umngok sekoq nie. LOLL

        Like or Dislike: Thumb up 11 Thumb down 9
        • Copy Paste on Sep 17, 2022 at 12:03 pm

          Copy paste: “Wow PH cytros trying to menegangkan benang basah! Bersatu was allied to PH in taking down BN so they are sharing the blame here. Or are you a history revisionist?! Have some shame la!!”

          Like or Dislike: Thumb up 4 Thumb down 4
    • Haters gonna hate on Sep 15, 2022 at 3:07 pm

      Shake out your own glue and stick it, it works.

      Or maybe you stick the wrong way, you have to tear the sticker out.

      Like or Dislike: Thumb up 8 Thumb down 1
    • Lets See on Sep 15, 2022 at 5:01 pm

      When Steve Jobs says you did not hold it right.

      Epitomizes the issues of user stupidity but blaming others.

      Like or Dislike: Thumb up 3 Thumb down 2
    • Sohai on Sep 15, 2022 at 5:19 pm

      If the roadtax doesn’t stick, You don’t know how to make it stick? Why Malaysian need to complain about everything and has that strong entitlement? Government need to put food on your table and feed into your mouth somemore?!

      Like or Dislike: Thumb up 5 Thumb down 2
    • David on Sep 15, 2022 at 5:46 pm

      I stick OK oni. No issues

      Like or Dislike: Thumb up 3 Thumb down 0
  • If you don’t want to burden rakyat, build better cities with more walkability and more public transit.

    Like or Dislike: Thumb up 36 Thumb down 0
    • If you live in kl city centre, you get what yiu wish. If suburb, sorry.

      Like or Dislike: Thumb up 6 Thumb down 1
    • Mama hippo on Sep 17, 2022 at 3:42 pm

      U r not allowed to propose actual solutions here. U r only allowed to screw things up or make it worse

      Like or Dislike: Thumb up 0 Thumb down 0
  • Cyrill on Sep 15, 2022 at 1:08 pm

    It is not purely a question of revenue… road tax act as a road-block to ensure vehicles on the road are properly insured.

    Like or Dislike: Thumb up 18 Thumb down 4
    • anton on Sep 15, 2022 at 6:05 pm

      That’s just technicality. Can just stick an insurance “sticker” to indicate coverage.

      Like or Dislike: Thumb up 8 Thumb down 0
  • Please yes on Sep 15, 2022 at 1:35 pm

    Yes please, especially since EV Road Taxes will be ridiculous once it kicks on.

    Like or Dislike: Thumb up 4 Thumb down 1
  • ThePolygon on Sep 15, 2022 at 2:27 pm

    This is the only gatekeeper that can check proper insured cars against illegal / non registered cars on the road and you want to abolish it?

    Like or Dislike: Thumb up 6 Thumb down 1
  • ApaIni on Sep 15, 2022 at 2:41 pm

    The first thing that come to my mind after reading this is to not vote for this senator ever again.

    Abolishing the roadtax system and fuel subsidy is absolute nonsense.
    There only one group of people that will benefit from this and it ain’t the general rakyat.

    To voice this out loud just shows how this Senator thinks and who’s his targeted benefactors.
    If he truly thinks by removing the roadtax and fuel subsidy helps the general rakyat.
    He shouldn’t be a Senator!!!

    Like or Dislike: Thumb up 20 Thumb down 8
  • suomynona on Sep 15, 2022 at 2:59 pm

    I’d say I’m in support of this. In the world of turbocharging along with NA’s, one kind of car you buy gets its road tax charged significantly lower than another similar car from another brand.
    If its not abolished, at least get it revised. Current roadtax method is outdated.

    To replace it with floated fuel price is debatable, but I think if we could buy huge displacement, we could afford the fuel price as well.

    And maybe it’ll reduce the amount of singaporeans drooling over our fuel prices.

    Like or Dislike: Thumb up 7 Thumb down 7
    • Wangsa on Sep 15, 2022 at 7:22 pm

      To get idea, you don’t need such turbo petrol cars. Turbo petrol cars is very expensive to maintain and also for maintenance cost and mainly for rich income group. NA Petrol Engine cars are more cheaper plus maintenance cost is also cheaper and mainly for lower and middle income group. Turbo petrol cars performance is greater but can causes huge problems for reliability while NA petrol Engine cars performance is not as good as turbo petrol cars but performance for NA petrol engine cars is good enough and don’t need big performance.

      Hybrid petrol cars is also still needed and benefits for fuel economy and lesser carbon emissions than turbo petrol cars.

      Turbo diesel engine cars like pick up trucks that is Hilux and D-Max are needed because of logistics, industries, logging and others

      Like or Dislike: Thumb up 19 Thumb down 2
      • My triton truck turbo diesel more than 12 years old no issues,

        Like or Dislike: Thumb up 2 Thumb down 0
      • Maggie on Sep 15, 2022 at 9:37 pm

        Good idea! Time to tax more for the rich like turbo gasoline cars. Make lesser taxes for naturally aspirated engine, hybrid and turbo diesel cars

        Like or Dislike: Thumb up 4 Thumb down 0
    • Wangsa on Sep 15, 2022 at 7:25 pm

      Fuel price subsidy should remain for NA engine cars, turbo diesel engine cars and hybrid
      Fuel floated price should belong to turbo engine cars

      Like or Dislike: Thumb up 10 Thumb down 3
  • “In order to cover the loss of revenue due to the elimination of this road tax, the government can consider reducing the fuel subsidy. This method is actually fairer to the people and the government, because it is aimed directly at eligible users, especially from the B40 group,” he explained.”

    hahahaha who he trying to fool and aid?
    b40 road tax only <rm100 per year and then u want to reduce fuel subsidy??
    only the rich with big engine will benefit from this..but luxury car nowadays also downsized & turbocharged..taxed less also…all benefit the rich

    Like or Dislike: Thumb up 10 Thumb down 0
    • Wangsa on Sep 15, 2022 at 7:32 pm

      Better tax for turbocharged petrol cars, mainly for rich income group, excluding for turbocharged diesel cars where turbocharged diesel cars are needed because of logistics, industries, logging and others. Turbo petrol cars performance is greater but can causes huge problems for reliability while should not tax for NA petrol Engine cars performance is not as good as turbo petrol cars but performance for NA petrol engine cars is good enough and don’t need big performance.

      Hybrid petrol cars is also still needed and benefits for fuel economy and lesser carbon emissions than turbo petrol cars.

      Like or Dislike: Thumb up 3 Thumb down 3
  • Hot Barrista on Sep 15, 2022 at 3:15 pm

    Hello Mr Senator. The ‘big chunk’ of money that we B40 group car owners that have to deal with is INSURANCE larr, NOT ROAD TAX!!! Don’t try to be populist larr,,,

    Like or Dislike: Thumb up 16 Thumb down 1
    • Lets See on Sep 15, 2022 at 5:02 pm

      PH making noise trying to be populist; as usual with these lot. Tin kosongs.

      Like or Dislike: Thumb up 12 Thumb down 8
      • Hot Barrista on Sep 15, 2022 at 6:42 pm

        He is NOT from PH ya, from BERSATU …………

        Like or Dislike: Thumb up 8 Thumb down 6
        • Copy Paste on Sep 17, 2022 at 12:04 pm

          Copy paste: “Wow PH cytros trying to menegangkan benang basah! Bersatu was allied to PH in taking down BN so they are sharing the blame here. Or are you a history revisionist?! Have some shame la!!”

          Like or Dislike: Thumb up 1 Thumb down 4
  • Ah Chong on Sep 15, 2022 at 4:10 pm

    Please switch to emission/impact based tax structure, and not engine capacity.

    Tax pollution. So people will choose the cleaner choice. We can put up no smoking sign everywhere in the city, why can’t we stop smog too?

    Doesn’t cleaner air benefits everyone?

    Like or Dislike: Thumb up 18 Thumb down 4
    • Wangsa on Sep 15, 2022 at 7:45 pm

      Another option, should not impose tax for engine capacity, but should do consideration by taxing for turbo petrol cars, except for turbo diesel cars.

      Turbo petrol cars is expensive to maintain and also for maintenance cost and mainly for rich income group. NA Petrol Engine cars are more cheaper plus maintenance cost is also cheaper and mainly for lower and middle income group. Turbo petrol cars performance is greater but can causes huge problems for reliability while NA petrol Engine cars performance is not as good as turbo petrol cars but performance for NA petrol engine cars is good enough and don’t need big performance.

      Hybrid petrol cars is also still needed and benefits for fuel economy and lesser carbon emissions than turbo petrol cars.

      Turbo diesel engine cars like pick up trucks that is Hilux and D-Max are needed because of logistics, industries, logging and others

      With or without taxing engine capacity, emissions will be everywhere, anyway since fuel consumption almost similar between turbo petrol cars and NA petrol engine cars.

      Can realized that why so many people buying turbocharged petrol cars, just because for showing off, no way. The problem is where if continuing buying turbocharged engine cars, would still give more pollute air

      Like or Dislike: Thumb up 5 Thumb down 1
  • Charles Chew on Sep 15, 2022 at 4:24 pm

    Never abolish road tax. Reduce it but don not abolish it.
    Road taxes are tied to vehicle insurance. If road tax is abolished, they may be vehicles on the road without road tax

    Like or Dislike: Thumb up 5 Thumb down 3
  • mastermind on Sep 15, 2022 at 5:56 pm

    Road Tax is fair in Malaysia, only rich people with exotic car or multiple car need to pay extra, then this stupid senator want to abolish it? tax relaxation for rich people?

    Like or Dislike: Thumb up 3 Thumb down 5
  • Sick&Tired on Sep 15, 2022 at 6:11 pm

    Wow, umno cybertroopers running wild here! Trying to pin the blame on PH when this guy is actually a Bersatu/PN member! Have some shame la!!

    Like or Dislike: Thumb up 8 Thumb down 20
    • History Bender on Sep 15, 2022 at 6:24 pm

      Wow PH cytros trying to menegangkan benang basah! Bersatu was allied to PH in taking down BN so they are sharing the blame here. Or are you a history revisionist?! Have some shame la!!

      Like or Dislike: Thumb up 10 Thumb down 5
  • Wangsa on Sep 15, 2022 at 7:33 pm

    Should do taxes for turbo petrol cars, except for turbo diesel cars.

    Turbo petrol cars is expensive to maintain and also for maintenance cost and mainly for rich income group. NA Petrol Engine cars are more cheaper plus maintenance cost is also cheaper and mainly for lower and middle income group. Turbo petrol cars performance is greater but can causes huge problems for reliability while NA petrol Engine cars performance is not as good as turbo petrol cars but performance for NA petrol engine cars is good enough and don’t need big performance.

    Hybrid petrol cars is also still needed and benefits for fuel economy and lesser carbon emissions than turbo petrol cars.

    Turbo diesel engine cars like pick up trucks that is Hilux and D-Max are needed because of logistics, industries, logging and others

    Like or Dislike: Thumb up 10 Thumb down 2
  • The ibsurance vomoany msjes mote m9ney from motorist than the gomen. But build no infrastructure. Just big bonuses to its executives.

    Like or Dislike: Thumb up 2 Thumb down 1
  • ROTI CANAI on Sep 15, 2022 at 11:19 pm

    Muhammad Zahid Md Arip is from BERSATU not PH, but comments semua marah PH aje, ok la, LIM KIT SIANG is from MIC boleh?

    Like or Dislike: Thumb up 11 Thumb down 4
    • Copy Paste on Sep 17, 2022 at 12:03 pm

      Copy paste: “Wow PH cytros trying to menegangkan benang basah! Bersatu was allied to PH in taking down BN so they are sharing the blame here. Or are you a history revisionist?! Have some shame la!!”

      Like or Dislike: Thumb up 1 Thumb down 5
      • ROTI CANAI on Sep 19, 2022 at 8:47 pm

        are you the same professor that says himalaya means Hi! Malaya!

        Like or Dislike: Thumb up 0 Thumb down 0
  • Surinder Singh on Sep 16, 2022 at 8:02 pm

    Older private vehicles with engines of 2000cc and above should have road tax abolished or drastically reduced. Many a time these vehicles are worth next to nothing and are mainly used by the older generation who bought them years ago. Most of these vehicles are well maintained and roadworthy. This step should however exclude classic cars which are rightfully in their own catagory. Let’s see if the PM listens to this request that has been repeated several times.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Surinder Singh on Sep 16, 2022 at 8:07 pm

    Older private vehicles with engines of 2000cc and above should have road tax abolished. These cars are often worth next to nothing and are mainly used by the older generation who have maintained them well but can’t afford newer cars.

    Like or Dislike: Thumb up 0 Thumb down 0
  • r Singh on Sep 16, 2022 at 8:09 pm

    Older private vehicles with engines of 2000cc and above should have road tax abolished. These cars are often worth next to nothing and are mainly used by the older generation who have maintained them well but can’t afford newer cars.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Daniel Sah on Sep 18, 2022 at 6:51 pm

    Should standardised road tax to all vehicles disregarding EV OR or displacement size to a rate even a b40 can afford. Eg. RM20 x 2 million vehicle owners. 40m revenue for the government. Road tax paid must have a meaning every agrees on too. Eg. You use the road, the roads needs maintenance, these money most of it, needs to be allocated to fix it.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Ya, the road tax sticker design is lousy. many years ago, was static adherence which is much better then the adhesive paste on. JPJ have sub standard designer, then and now. Road tax should maintain or apply for 1800cc and above. at higher rate too to cover lost of not taxing the common man.

    Like or Dislike: Thumb up 0 Thumb down 2
  • Wong Loke Hoi on Jan 31, 2023 at 6:46 pm

    I just renew my Road Tax ~ RM 100.00 and receive it in 3days . Unfortunately I misplaced my New Roadtax . I read on line and it said that I have to pay a Fine of RM50.00 and must go physically to get a New Road Tax . I went to renew the Road Tax at JPJ , fill up the form and Forward it to the Counter , paid the fine and get the New roadtax . My time spent for the process is ~ 2hrs while the JPJ time spent is less than 5 min. Thus Why Impose a fine of RM50.00 . Also why Need to read and sumbit 3 Pages of dokument etc since JPJ should have the record that I just renew my Road Tax .

    Like or Dislike: Thumb up 0 Thumb down 0
  • this will only benefit the premium car owners. majority will not benefit. why abolish?

    Like or Dislike: Thumb up 0 Thumb down 0
 

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