Road Tax Will Not Be Abolished, Malaysia Needs It As A Major Source Of Revenue

The Road Transport Department’s (JPJ) annual income stands at RM4 Billion, of which RM2 Billion comes from road tax collected, said Transport Minister Anthony Loke. Hence the government cannot in the near future abolish this tax collection.

He said that during a media session at the DAP headquarters at Jalan Pudu recently. He further added that road tax collection is necessary as it is one of the major forms of revenue to the country which if waived would affect management of the country.

Loke further added that, “The people should understand that in any country, the government needs to collect taxes and road tax is one of the important ones,” quoted Malaysiakini.

This comes after the transport minister's announcement late last week of the digitalization of both the road tax/motor vehicle licence (LKM) and drivers licence (LLM) where there were calls to abolish the road tax altogether instead of just removing the necessity of displaying the sticker.

Loke also explained that the digital road tax and drivers licence was an option given to everyone where one could still opt to retain the use of it in physical form. This is especially important for senior citizens and those living in rural areas where internet connections could be poor.

Vehicle owners can now download and register to the MyJPJ mobile app to view all their LKM and LLM details and also get access to other features such as the e-Aduan@JPJ. This however does not apply to private commercial, goods and company vehicles which would still require the use of the physical road tax sticker at the moment.