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
VQL2916
SELANGOR
BSM3764
JOHOR
JYR2151
PULAU PINANG
PRY4864
PERAK
APF1146
PAHANG
CFF2182
KEDAH
KGE2706
NEGERI SEMBILAN
NEJ4784
KOTA KINABALU
SJQ2154
KUCHING
QAB2108N
Last updated 07 Feb, 2026
Fuel Price
Petrol
RON 95
RM 2.54
+0.02
RON 97
RM 3.10
+0.02
RON 100
RM 5.00
VPR
RM 6.23
Diesel
EURO 5 B10
RM 2.88
+0.04
EURO 5 B7
RM 3.08
+0.04
Last updated 22 Jan, 2026
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
Zeekr 7X 2026 Pricing Updated - From RM183k, Up 1.8%
Zeekr Malaysia updates 7X pricing for 2026 following the end of EV tax incentives, with a modest increase of RM3,000-RM4,000 across variants.
06-02-2026
Perodua CEO: Next-Gen Myvi In The Pipelines, Current Bezza Remains
In rare interview, Perodua CEO details plans for next-gen Myvi hatch, confirms current Bezza remains too.
06-02-2026
UMW Toyota Records Slower January Sales, Down 12% to 4,700 Units
UMW Toyota posts lower January sales as competition intensifies and electrification accelerates.
06-02-2026
Malaysia’s Climate Plans Stop Short of Targeting Cars
Private vehicles are unlikely to face direct climate targets as Malaysians remain heavily dependent on cars.
06-02-2026
My50 Pass: Commuters Save RM100 Monthly
Over 50% of Klang Valley commuters are going digital with the My50 pass, saving RM100 monthly.
06-02-2026
LRT3 Shah Alam Line Expected To Open In June
After years of delays, the LRT3 Shah Alam Line could finally begin operations in June, pending final safety tests.
05-02-2026
First Johor Bahru–Singapore RTS Train Hits Woodlands
The first Johor Bahru–Singapore RTS Link train has arrived in Singapore on Wednesday, as confirmed by LTA.
05-02-2026
MTSB Bill in the Works to Streamline Transport Safety
The MTSB Bill is being drafted to integrate agencies like MIROS and AAIB, ensuring efficient transport safety management.
05-02-2026
Show More
trending_flat