Earlier this week, the government announced a new road tax structure for electric vehicles (EVs), which brings about much cheaper rates across the spectrum compared to the previous one determined in 2019.
During the Q&A session following the briefing, we asked transport minister Anthony Loke if there was any plan to review the existing road tax – or lesen kenderaan motor (LKM) – structure for internal combustion engine (ICE) vehicles and reduce the rates in that.
The question has of course been posed before, but the answer remains the same, with no cheer in store for motorists with ICE vehicles. As Loke explained, the government does not intend to make changes to the LKM fees for ICE vehicles or reduce the rates.
He said that existing rates – which are based on engine displacement capacity – are already low and reasonable. “For existing ICE vehicles, at this time we are not making changes to the road tax because most people still use ICE, and if we want to increase the rate, it might affect their costs,” he said.
“If we were to make changes, the rate could be higher, and if the rate is higher then the burden will be on the public, what more with (fuel) subsidy rationalisation, so we are not looking at that,” he added.
Last year, Loke had said that while a review of the LKM structure was being considered, the rates would likely remain untouched should the exercise come about.
“This is because road tax is one of the biggest revenue earners for the government, and that any decision that could decrease the country’s revenue, such as lowering the road tax fees, would only create a negative impact,” he said then. Last year, road tax generated almost RM3 billion in revenue for the government, according to the road transport department (JPJ).
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Low and reasonable my foot Loke! Try paying it yourself for once in your life!
So now ICE owners are subsidizing EV owners for road maintenance that mainly caused by heavier EV vehicles?
Most ICE SUVs are as heavy as EVs. Easily reaching the 2,000kg mark.
Like what? Name an ICE SUV heavier than Atto 3’s 2160kg.
big litter dream will never ever realize.
Should increase it instead. There are way to many cars on the road
Nah. Taxing new cars with huge displacement makes nooo sense
Low and reasonable your head
how about excise duty on ICE? you are removing the petrol subsidy, so just tax the 6% SST cukup la. can’t just know how to calculate one way.give and take.
What do you mean low? Compare apple to apple lah. EV roadtax with same HP as ICE is mostly different. Kata government nak adil kepada rakyat. Where’s the adil in that? You want to reform, reform the whole damn system. Again, benefitting the rich, and not the low and middle income. People with families driving old Naza Ria and Toyota Estima is paying higher roadtax compared to people driving BMW or Merc with lower cc but higher output. I know you want to drive people to buy EV, but this is not the way. You want people to drive EV, lower your taxes, build more charging infra, get all the workshop ready and qualified for EV repairs. You think workshop (not service centre) willing to upgrade their facilities? Who will bare the cost of equipment upgrades? So many things to address. Govt wants to float the petrol and diesel price, fine. But be fair for everyone!
Low and reasonable? Says who? Example, Audi 1.3 is much cheaper than Persona 1.6. Is this reasonable?
Please step down.
The revised EV road tax structure was done to boost EV adoption rate. Doing the same for ICE will simply counter that effort.
When the transport ministry and JPJ announces their revenue, perhaps they should provide a breakdown of each ICE engine capacity-groups’ contribution. Its plain day light robbery to announce it as ‘reasonable’ when >RM200K car owners are also paying about the same amount as a ‘reasonable’ bread and butter Myvi, Vios, City etc.
TO pay Road TAX
NOT happy next time vote Fridaus WONG
OK FINE, no plan to reduce ICE roadtax, but at least rationalize the roadtax structure.
BMW 218i – RM90
Mercedes A200 – RM70
vs.
Proton Saga – RM70
Perodua Myvi – RM90
sounded like those driving myvi can afford to buy A200.
There should be s price cap for ICE cars road tax. Maximum RM3k per year. Paying p to RM15k for road tax is ridiculous.