The Malaysian ministry of transport is set to make significant amendments to the Road Transport Act 1987 (Act 333), which are expected to be tabled in parliament on Monday. The proposed changes are wide-ranging and include a tightening on how road tax is calculated based on location.
When it comes into effect, vehicle owners will have to declare the main location in which their vehicle is used when renewing their road tax, or when paying road tax for their new vehicle for the first time. The road tax amount will then be calculated based on the declared location.
This in effect closes the loophole in which cars that were registered in either duty-free states like Langkawi or Labuan, or in Sabah or Sarawak get exacted a lower road tax than those registered in Peninsular Malaysia, even if they only ever get used on the peninsula. It appears there will be no exemption for people who actually hail from those areas, although details have yet to be fleshed out.
The MoT says the new rules aim to reduce leakages in road tax collection and empower the road transport department (JPJ) to improve enforcement. No word on how the agency will enforce it (how will they track the location of every car on the road?), but regardless, this will be unwelcome news to those currently using outstation registration to pay lower road taxes. What do you think of the move? Let us know in the comments.
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idiot move. there is no cheaper even im driving at peninsula but using the Sarawak plate number. the roadtax rate is depends the vehicle register on which category and the cc. really no idea where those information the transport minister get. if he havent take the medicine, please go and get some.
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Keen to sell car