Changes To Road Tax Mechanism Would Need Extensive study and Time To Implement – Loke

Road tax, formally known as lesen kenderaan motor (LKM), is one of Malaysia's most important sources of revenue. According to Transport Minister Anthony Loke, the annual revenue from road tax is RM3 billion.
Currently, the Malaysian road tax fee for motor vehicles is determined by a number of variables, including engine capacity, fuel type, vehicle body type/code, type of ownership, type of use, and the area where the vehicle is declared to be used.
The system has been unchanged for a long time, prompting the question of whether the mechanism should be improved so that it properly reflects the cost of road maintenance in relation to the type of vehicle involved.
That is what senator Robert Lau Hui Yew (SUPP) asked the transport ministry last week in parliament, and in a written response, the ministry stated that the collection of LKM fees is considered revenue collection for the government as a whole, and there is no stipulation under Act 333 stating that all LKM fee collections must be used solely for road maintenance. The ministry also stated that it is constantly looking into existing road tax calculation methods, in collaboration with the JPJ, to ensure that the structure is always relevant based on needs and in accordance with current policies. It stated that any changes to the mechanism would necessitate a detailed study involving various stakeholders, but would also take time to complete.
This follows Transport Minister Anthony Loke's statement that a comprehensive review of the road tax structure was required, but any changes to the current rates for ICE vehicles are unlikely. It does, however, intend to reconsider the road tax structure for electric vehicles (EVs).
Gallery
Written By
Anis
Previously in banking and e commerce before she realized nothing makes her happier than a revving engine and gleaming tyres........
JPJ Running Numbers
KUALA LUMPUR
VPY6516
SELANGOR
BSK1152
JOHOR
JYK8645
PULAU PINANG
PRV5857
PERAK
APC4390
PAHANG
CFE1290
KEDAH
KGC9419
NEGERI SEMBILAN
NEH5778
KOTA KINABALU
SJN6176
KUCHING
QAB4991M
Last updated 12 Nov, 2025
Fuel Price
Petrol
RON 95
RM 2.60
RON 97
RM 3.20
RON 100
RM 5.00
VPR
RM 6.23
Diesel
EURO 5 B10
RM 3.02
+0.07
EURO 5 B7
RM 3.22
+0.07
Last updated 06 Nov, 2025
Related News
BMW X6 Seized, Owner Skipped Road Tax For 7 Years
Traffic enforcers apprehended a Malaysian man driving a luxury SUV who skipped road tax for 7 years.
19-04-2024
No U-Turn On Digital Road Tax, Driving Licences - Loke
The govt will continue to enforce the digital road tax and driving licences, despite criticism.
24-10-2024
Vehicle Licence, Driving Licence, Road Tax Can Be Downloaded Via MyJPJ app
Malaysian Vehicle Licence (e-LKM), Malaysian Driving Licence (e-LMM), and road tax can be downloaded from the MyJPJ app if required.
15-11-2023
Malaysia Seeks Brunei’s Recognition For Digital Road Tax
The Malaysia Transport Ministry will try to negotiate with Brunei to recognize Malaysia's digital road tax license.
13-11-2023
JPJ Branches Ordered To Take Down 'No Physical Road Tax' Notice
Several JPJ branches have been directed to remove 'No Physical Road Tax' Notice.
04-08-2023
MyEG Gets Three-Year Contract Extension To Handle JPJ-Related Services
MyEG Services Bhd has been granted a "non-exclusive" three-year extension for the e-government services it provides to the JPJ.
05-05-2023
PIAM Agrees Digitalization Of Road Tax And Driving Licence Draws Positive Impact
The general insurance industry supports the digitalization of road tax and the driving licence introduced by the Road Transport Department (RTD).
24-03-2023
Government Mulling 10-Year Driving Licence Renewals - Loke
The government is considering allowing drivers to renew their licences for up to ten years says Loke.
23-02-2023
Latest News
Oct 2025 Vehicle Sales Up 30%, xEV Share at 8.7%
Malaysia’s car market surged in Oct 2025 with 81,413 new registrations, up 30% from Sept’s 62,598 units.
12-11-2025
LATAR Interchange Opens, Direct Access To Eco Grandeur
The Eco Grandeur Interchange and Toll Plaza has officially opened, offering direct access through Exit 2502 to Eco Grandeur.
11-11-2025
Penang Sentral Set to Become Mainland’s Integrated Transport Hub
The Butterworth KTM station, Mutiara Line LRT, and airport expansions will turn Penang Sentral into key transport and logistics hub.
11-11-2025
Six Bidders Eye Barrier-Free MLFF Toll System - Report
Six consortiums are reportedly competing to roll out Malaysia’s long-awaited MLFF toll system.
11-11-2025
EV Ownership Risky, Battery Leasing Could Ease Depreciation Risks - Analysts
EVs can lose nearly half their value in five years, while high battery costs and limited infrastructure keep ownership risky.
11-11-2025
PLUS To Close Two Bangi Ramps Nightly Until Nov 28
PLUS will close two ramps near Bangi nightly from 10PM to 5AM starting today until Nov 28.
10-11-2025
KLIA Aerotrain Halts Daily Midnight To 5am For Maintenance
KLIA Aerotrain will stop running every night from midnight to 5am for routine checks and maintenance.
10-11-2025
4.4 Mil Old Vehicles Threaten Road Safety, Incentive Alone Insufficient
JPJ data shows over 4.4 million old vehicles are still on the road making up about 17% of the country’s 25.7m active vehicles.
10-11-2025
Show More
trending_flat
