JPJ Rolls Out Flexible Road Tax Renewal For E-Hailing Vehicles

Starting January 30, registered e-hailing drivers in Malaysia can now renew their motor vehicle licences, or road tax, for periods shorter than the traditional six or 12 months. 

The Road Transport Department (JPJ) and Ministry of Transport (MOT) introduced this new framework to address the difficulties faced by e-hailing vehicle owners whose permits were nearing expiry. 

Previously, drivers had no option to renew road tax for less than six months, which often left them in a bind when their vehicle permits had less than six months remaining.

"Under the updated system, e-hailing drivers can now choose renewal periods ranging from one to five months, with the total fees capped at the six-month road tax rate

"The maximum renewal period remains 12 months, while the minimum is one month. Renewals are subject to the shortest remaining validity among the vehicle permit, the motor vehicle inspection report, and insurance coverage," the ministry said in a statement.

 MOT emphasised that standard six- and 12-month road tax rates remain unchanged, while the new flexible renewal introduces prorated fees for shorter periods. In Peninsular Malaysia, for example, vehicles with engine capacities of 1,000cc or less under usage code AB can now renew for one month at RM2.70, two months at RM3.40, or three months at RM5.

Vehicles with engine capacities between 1,404cc and 1,600cc can renew for one month at RM8.50, two months at RM15, and three months at RM22.50. Similar prorated rates apply under other usage codes and across states, with lower fees in Sabah, Sarawak, and tax-free zones such as Langkawi and Labuan.

"The move is part of the government’s effort to make compliance simpler and more cost-effective for gig economy drivers, many of whom rely on e-hailing services for their livelihood." it stated, adding that this flexibility is only valid while the vehicle remains legally registered as an e-hailing vehicle.