Link Copiedcheck_circle
Auto News

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

Anis

3-4-2023

Share via


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

Tagged:

road tax mechanism
digital roadtax
roadtax
roadtax system
roadtax fees
Share This Article

Written By

Anis

Previously in banking and e commerce before she realized nothing makes her happier than a revving engine and gleaming tyres........

Share via

Related News

Auto News
BMW X6 Seized, Owner Skipped Road Tax For 7 Years

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
Auto News
No U-Turn On Digital Road Tax, Driving Licences - Loke

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
Auto News
Vehicle Licence, Driving Licence, Road Tax Can Be Downloaded Via MyJPJ app

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
Auto News
Malaysia Seeks Brunei’s Recognition For Digital Road Tax

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
Auto News
JPJ Branches Ordered To Take Down 'No Physical Road Tax' Notice

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
Auto News
MyEG Gets Three-Year Contract Extension To Handle JPJ-Related Services

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
Auto News
PIAM Agrees Digitalization Of Road Tax And Driving Licence Draws Positive Impact

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
Auto News
Government Mulling 10-Year Driving Licence Renewals - Loke

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

Auto News
UMW Toyota Closes April 2025 By Shifting 7,932 Vehicles

UMW Toyota Closes April 2025 By Shifting 7,932 Vehicles

UMW Toyota Motor closes April 2025 by shifting 7,932 vehicles, YTD total now up to 27,876 units.

07-05-2025
Auto News
Decreased Fuel Prices From 08 To 14 May

Decreased Fuel Prices From 08 To 14 May

The Ministry of Finance (MoF) has announced the retail prices of all fuels in Malaysia, for the coming week of 08 to 14 May, 2025, the rates are as such.

07-05-2025
Auto News
Special Models & Prizes Await at BAuto’s MAS 2025 Showcase

Special Models & Prizes Await at BAuto’s MAS 2025 Showcase

Visitors to Bermaz Auto’s showcase at the upcoming Malaysia Autoshow 2025 can stand a chance to win exclusive merchandise.

07-05-2025
Auto News
Motorcyclists Make Up 70% Of Yearly Fatal Accidents - VTAREC

Motorcyclists Make Up 70% Of Yearly Fatal Accidents - VTAREC

Motorcyclists make up 70% of the roughly 6,000 yearly road fatalities, yet they are responsible for only about 13% of accidents.

07-05-2025
Auto News
Proton Posts Strong April Sales, e.MAS 7 Leads EV Market

Proton Posts Strong April Sales, e.MAS 7 Leads EV Market

Proton recorded a 14.7% YOY sales growth in April 2025, buoyed by strong demand for e.MAS 7 EV.

06-05-2025
Auto News
Malaysia Autoshow 2025 Charges Up Ahead Of May 9 Opening Day

Malaysia Autoshow 2025 Charges Up Ahead Of May 9 Opening Day

Malaysia Autoshow 2025 (MAS 202) gears up as May 9 opening day looms closer, tickets are still available online from RM20 onwards.

06-05-2025
Auto News
ECRL Hits 82% Completion, Promises 1,800 Jobs - 80% For Locals

ECRL Hits 82% Completion, Promises 1,800 Jobs - 80% For Locals

ECRL, Malaysia’s largest rail project is nearing completion, with passenger service set to begin by Jan 2027.

06-05-2025
Auto News
Man Warns About Car Battery Thefts Near Glenmarie LRT Station

Man Warns About Car Battery Thefts Near Glenmarie LRT Station

A TikTok video by @bateriku.com_ttdi warns the public about increased car battery thefts near the Glenmarie LRT station.

06-05-2025