Cheaper Road Tax For Diesel Owners? 5 Things You Need To Know About PM Anwar’s Newest Proposal

If you’ve been staring at the fuel pump in physical pain every time you fill up your Hilux or D-Max lately, we have some potentially life-saving news for your bank account. While diesel prices in the Peninsular are currently floating at RM5.12 per litre, a major policy shift is on the horizon.

During the Road Transport Department’s (JPJ) 80th anniversary celebrations at Batu Kawan, Prime Minister Anwar Ibrahim signaled a potential "consolation prize" for the country's 1.8 million diesel vehicle owners: a reduction in road tax.

If you drive a diesel-powered pickup truck, SUV, or commercial vehicle, here is the breakdown of what this proposed tax cut means for your wallet.

1. Relief for the "Uncovered" Segment

The primary goal of this road tax adjustment is to assist those who fall through the cracks of existing aid. While the BUDI Diesel program provides RM400 monthly to eligible individuals, and commercial fleets use fleet cards, many diesel owners don’t qualify for either.

Transport Minister Anthony Loke confirmed that the National Economic Action Council (MTEN) is specifically looking at this tax reduction to assist vehicle owners who do not qualify for direct cash subsidies.

2. Addressing the "Diesel Surcharge"

In the past, diesel road tax was always more expensive than petrol road tax for the same engine size. Why? Because the government gave us a huge discount on diesel fuel at the pump, so they "collected" some of that back through a road tax surcharge.

But now that diesel prices are floating at RM5.12 per litre, that old deal doesn't really make sense anymore. The government is finally admitting that since we’re paying more for fuel, we shouldn't be penalized with higher road tax too. The goal is to make diesel road tax just as fair as petrol road tax.

3. Impact on 1.8 Million Vehicles

While diesel vehicles make up a relatively small percentage of the total vehicle population in Malaysia, the segment is vital for the economy. From small business owners using 4x4 pickups like the Toyota Hilux and Isuzu D-Max to private SUV owners, 1.8 million users are currently navigating fuel costs that are significantly higher than they were a year ago.

4. Why not just lower the fuel price?

You might be wondering: "Why not just drop the price at the pump?" Transport Minister Anthony Loke explained that keeping diesel at market prices is necessary to curb leakages and smuggling.

Setting prices too low in the Peninsular makes it too easy for fuel to be snuck across borders. By adjusting the road tax instead, the government can put money back into the pockets of genuine Malaysian owners without creating a "sale" for smugglers.

5. When Will the Announcement Happen?

The Ministry of Transport (MoT) is currently conducting an impact study to determine the exact percentage of the reduction and how it will affect government revenue. Anthony Loke has stated that the proposal has been submitted to National Economic Action Council (MTEN) and a formal announcement is expected "soon." 

Stay tuned to Carz Automedia for the latest updates on the official MoT announcement.