Road tax, formally known as lesen kenderaan motor (LKM), is one of the biggest sources of income for Malaysia, and that is why it will be here to stay. How much does the government collect exactly? Transport minister Anthony Loke revealed that the annual revenue from road tax is RM3 billion.
He added that the transport ministry is considering a review of the road tax structure, but one shouldn’t be holding out for a lower rate, as that would “create a negative impact”.
“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. Currently, it generates almost RM3 billion. So far, there is no decision to lower it,” Loke said yesterday at parliament, reported by NST.
“Any decision that could decrease the country’s revenue, such as lowering the road tax fees, would only create a negative impact,” the Seremban MP added.
This is not the first time that Loke was fielded a road tax question, now that LKM is back in the conversation thanks to the ministry’s decision to digitalise JPJ documents, making road tax stickers optional.
“Road tax is one of the government’s sources of income. If all are exempted, then the government will have no income and how are we to administer the country? We need to understand that in any country, the government needs to have income, especially tax,” Loke said earlier this month in response to calls from some netizens for the government to abolish road tax.
He added then that JPJ collects over RM4 billion every year and road tax receipts are a big portion of it. Now we know that the portion is indeed big at three quarters.
Want to save on road tax? Electric vehicles are exempted from road tax till the end of 2025, and Loke has hinted at lower road tax rates for EVs when it’s finally time for EV owners to buy LKM. Currently, EV road tax – which uses a kilowatt-based system as there’s no engine capacity to consider – is not just uncompetitive compared to regular internal combustion engine cars, it’s much higher.
Looking to sell your car? Sell it with Carro.
People complain about jam, then want reduce road tax to increase more vehicles on the road ?
Car price also complain, road tax complain, tol complain, please la, ride a bicycle
normal la, tongkat culture since the 80’s.
Semua nak complaint. Kerja tak mau. MALAS.
No propose solution, only know how to complaint.
I do agreed with yb, but I disagree with current road tax policy ie high cc high road tax…it should be high car price high road tax instead
But the prices of local made cars also not cheap. Than how? Keep using old cars until when? Then say after 10 years old car must get off the road and buy new car? Many rakyat still recovering from the stupid 2020 and 2021…
Only know to ask for 10% commission for tunnel and illegally encroached govt lands to plant durian…embrassing…than play victim…sobtypical if these people
car expensive = complain
make car cheaper, then too many cars = complain
then reduce car ownership by increasing tax = complain
tak habis habis complain. Malaysians really like small kids.
The system is the problem. Long time already not correct… Yg hidup senang dan cukup wang senang cakap.. tetapi ada ramai juga yg tak ada peluang.. bukan senang nak selesai ni.. kita berharap semoga bebanan negara akan pulih pada masa hadapan.
Only know to ask for 10% commission for tunnel and illegally encroached govt lands to plant durian…embrassing…than play victim…sobtypical if these people
Some people like to complain even cannot wear seluar katok also complain…then they play victim…if they cannot wear seluar katok then they cry and blame the govt…never stop compaining…
Basikal pun mahal bang. Nak beli pinarello ke trek ke kena ambik personal loan
Basikal murah ada bro, nak yg mahal kena lah bayar
WHAT ABOUT EXCISE DUTIES !! THE MAIN GOAL WAS PROTECTIONISM 40 YEARS AGO, ENOUGH ANTHONY LOKE
a lot of temporary agreement from 50 years ago, also still in place. ie. NEP
Proton and perodua still cant compete on an equal playing field
that’s why still giving them TONGKAT.
budaya tongkat tak hilang hilang
Stop with the surprises and sudden implementation without first presenting the rakyat with your ideas. Where are the studies done before implementation is applied? For every new policy done and planned a case study and presentation should be done and published. This way everyone can get prepared. There maybe those who will oppose or have their views which is good. This is about being open and bring the rakyat into the plan, uniting all. Just suddenly implementing a policy without consulting and identifying the possible consequence is not a professional way to go. Remember you may sit in a position as a Minister or Director or GM but your still bound to answer to the shareholders. The rakyat in this case are the shareholders, cause without them there is no meaning to a company or a business or a country. My views which is only base on life living in many different countries over the years.
Do not abolish the tax. Just restructure the tax amount, not base on engine displacement alone, old skool already.
Maybe can put on together current market value (RM) of the car as additional criteria. New and expensive car should pay higher road tax. Once the value of the car reached below (let say RM30k), then it will pay only the displacement tax alone. For exanple:
Case 1:
Mr. Ali owned 2016 proton persona that marked value around RM25k. He only need to pay the current displacement roadtax which RM90
Case 2:
Mr. Chan bought a new nissan almera. Based on the displacement only, he just need to pay RM20. But since the car price is expensive than 2016 persona. Then he will need to pay additional road tax based on the car market value. Let say every RM50k market car price need to add another RM100 value of road tax as example below:
a) below RM30k car, no additional tax
b) below RM50k, RM100
c) below RM100k, RM200 and so on.
So if Mr. Chan new Almera price around RM95k, he need to pay total of RM220 (RM20 + RM200) for the roadtax.
I think this mechanism is fairer for the rakyat. This also can control the increasing number of new cars on the road.
Just my raw opinion, any new relevant mechanism should be applied for new road tax calculation method.
This didn’t worked in the UK. There, rich people changed to (fully restored) Jaguar E-Types from the 1960s to pay less road tax than new Kancil-type cars.
Just tax the petrol instead. The more you use, the more you pay. Didn’t like this message? That’s because everyone just said things that benefits them.
I think I’ll be perfectly happy riding a scooter daily while having a toy muscle car for the weekend. Others might hate the idea for sure.
We live in a very diverse country. Many different financial conditions in each households. Not all have the opportunity as others. The bottom line, too many cooks spoil the dish. Too many cronies in the past spoiled the system.
You already get cheaper insurance,
Road tax no changes, because your car weight and damages to Road maintenance,
Still same.
We are not saying to abolish road tax. Majority of the rakyat is not dumb, the government needs tax revenue.
BUT, the current road tax structure is dumb. I drive a Saga 1.6 and my friend drives a new Mercedes 1.5, so I pay more for road tax is it??
Review and change is needed.
Then you need to ask yourself, why are you driving a Saga ONLY. Look inward, you are leeches in Malaysia.
Please change from engine capacity to engine power-based road-tax pricing. You’re smarter than that.
All high-end continental car brands use a smaller engine to produce huge amounts of power. Rich people pay less tax.
What’s wrong with Rich People pay less tax on the EXPENSIVE vehicle he bought ? How much tax you paid for ur Axia ? And how much do a C200 1.5 engine tax cost ?
Similar like your stamp duty or SST which is based on the price of item. So road tax must based on the market value of the car. Calculate as a percentage. This is fair for both rich and poor.
buat ikut saiz kereta je, senang. Lagi besar, lagi mahal. Thats why Jepang ada Kei-car category
You want to reward obsolete tech (lots of cc with low power output)? As they do with the 6l V8’s in the US?
As mentioned by many before, charge by the value of the vehicle, eg. insured value.
i would like to add on, besides based on their insured value, it should also set based on cc. Eg.
a. A 1.5cc car with 50k value x 0.1% + RM0 (below 2000cc)= RM50 roadtax p.a.
b. An used 2.4cc with 45k value x 0.1% + RM100(2000-2499cc)= RM145 roadtax p.a.
This is to discourage ppl buying high cc car which consume more fuel and increase weight burden to the road. Anyway, just my suggestion. tq
Aduh… buat la roadtax ikut horsepower (hp). Corolla RS byr road utk engine 1.6L, tp power smpai 300 hp. Apo kebondo?
Sedangkan EV pon byr roadtax ikut kW power output nanti. Kereta engine pon patutnya kena roadtax ikut hp/kW juga lah.
Sabah & Sarawak road not as great in peninsula Potholes, uneven surface & non tarmac can easily be found. We would want ministry to reduce innthese 2 regions if possible.
Enough of this Sarawak & Sabah vs KLANG VALLEY. A lot of other parts in Peninsular still as backward as if not worse than the remote area in EM you are comparing.
Travel and get to know other places and people. Don’t limit yourself to your circle of people.
Car prices? Until when want to lower?
National cars getting more expensive and already selling well. Still want to protect after how many years?
Ridiculous excise duties but not a single mention about lowering it at all?
roadtax for 1.6 and below is relatively cheap. if you can afford to buy or nak sangat drive 2.0, 2.5 or above, then don’t complaint.
What negative impact? You will just give the money to the B40.
Why not increase road tax for low cc cars tp say RM300 and cap road tax for high cc cars to say RM2500? Gomrn will earn much more.
Hahaha… Good one….
Who going pay repair the roads cost without road tax? Higher a bit would make our roads better.
May be if the public transport system has improved with better timing for those living in the suburbs it may ease the usage of cars. Getting to work on time… Err.. sorry boss the bus arrive late, eerr… There was a jam… And there goes productivity. In Sabah, road tax are a far different priced compared to other states.. did you know that.?. That’s why so many Sabah and Sarawak number plates / vehicle registered are seen driving here.l or maybe i am wrong? Correct me if so. Yes, we are a pampered society without a doubt. Don’t compare Singapore to Malaysia as this is a much larger country of which there are folks living in areas that require their own form of transport to move around. I give a simple example of our very own KTM and ERS which has far from desired scheduled timing. To get to Penang from Ipoh I have to switch trains as there isnt a direct train. We have train stations build but never operated. We could improve the park and ride system but then if i choose to not drive and opt to got via public transport, this would mean i need to plan and set aside so mich time ahead inorder to catch a bus than to a train station to match the train schedule. A simple day trip takes far more time then driving. PRODUCTIVITY? I have in the past come across incidents where friends arrive in Ipoh and needed to continue their trip to Penang or KL only to find the train does not support that section of the track or the train is not schedules for that hour or worst still no more seats. Sometimes the counter is closed or the staff cannot take an bookings or issue tickets for one thousand and one reasons .. in the end we have to help send the person to another station driving our vehicle.. note we still need to drive our own vehicle.
Thus, i return to the issue of of road tax, higher prices, digital road tax and so forth, while I praise the fact it generates so much revenue, ease up work but is the country and its people ready? Are the infrastructures in place? City wise one may argue that it is in place, positive point but what about the places like those outside KL? Railroad, Highways, state roads, federal roads kampung roads all play a very vital part to the movement of the industry and economy of the country. Reevaluate and look into these segment which I feel is a very important aspect that contributes towards taxes and vehicle pricing. Question that comes into mind, are we trying to reduce car ownership or the dependence on vehicle usage by society, or moving towards EVehicles? Are we ready for such a move? Is the country and the people ready financially? Do we have the infrastructure ready, if not, then when, how much time is needed to set up? Do we already have the talented people to make this happen? Do we have the budget to make this move or is it just all say without a full study done. If the study is done, then present it in the media, news papers, etc before implementation. Let the rakyat know of your plans. I am sure there will be many talented and experience people among the rakyat who will help provide a reply and review to further help make the plan a success. Unless one is afraid of criticism or of individuals pointing flaws in the plan. If we want a better country with awesome facilities we got to be open, unite the people by keeping them in the loop instead of sudden surprises and implementation. What may seem a great idea to you may not be viable to another. Think about it…
Let’s see here..
1. Import tax
2. Excess duty
3. AP
4. Roadtax
5. Toll
If JPJ is already collecting RM3b annually, why on earth still forcing us to pay roadtax? That’s day light robbery right here
Out of the RM3b, how much is allocated for road maintenance, expansion, better lighting and etc?
Not forgetting the maintenance and spare parts required for our vehicles are also heavily taxed. Not sure where and how Malaysia picked up this multi tiered tax system but taxing the rakyat and claiming it’s one of the biggest revenue is a real shame.
Don’t abolished road tax but modify it according to the value of the car for the current year. If I can buy an expensive car then paying road tax is not a problem. Sometime 2nd hand car with big cc is cheap but the road is high. Don’t use old formula of big cc big tax
Just keep it simple. Annual Road tax should be based on a nominal value, for each category of vehicle class. Eg A Segment – RM100, B segment – RM200, C Segment – RM300 etc. Then, a second component of road tax should be added to the petrol price. The more petrol you use for higher HP, you just pay more. This type of consumption tax is fair for everyone.
I think road tax quite cheap dowh. who need bigger cc? we just need turbo 1.0 – 1.5 but with turbo. But if afford to you buy 4X4 with bigger cc and then you should have money to buy road tax. Accept for Sabah Sarawak they should get discount more. They got million ringgit for infra but road like 10years behind compare to semenanjung…
Why not just base the road tax on vehicle weight since that is the biggest contributor to wear and tear on the road?
Taxing new cars more than old cars will only cause problems of never obsoleting old cars which are not only an insurance liability (which means insurance companies will raise rates for everyone) but also bad for emissions and fuel consumption. Also as another commenter mentioned, rich people will just start restoring old cars so it doesn’t help anyone. The goal should be smaller, more efficient cars not bloody pickup trucks everywhere.
High horsepower cars are also typically heavier (Merc, BMW, etc). Electric cars are also much heavier than typically ICE cars.
Base it on weight, so it’s a simple straightforward calculation, easier to implement and easier to police.
FYI, high powered but light cars typically run either very high compression ratios or turbos which means they can only run RON97 and above. So these people are already paying for it at the fuel pumps.