Government Plans to Lower Diesel Road Tax to Help Owners
Government Plans to Lower Diesel Road Tax to Help Owners
Malaysia could soon introduce a reduction in road tax for diesel vehicles, as part of efforts to ease the financial pressure caused by increasing fuel prices.
Prime Minister Anwar Ibrahim confirmed that the proposal has been discussed with Transport Minister Anthony Loke, with the transport ministry now tasked to study and develop a workable plan for implementation in the near future. The initiative is expected to benefit around 1.8 million diesel vehicle owners nationwide who are currently impacted by higher operating costs.
While many may hope for lower diesel prices, the government has made it clear that this is not feasible at the moment due to the heavy financial burden of fuel subsidies, which already cost about RM7 billion per month. Instead, the government is shifting its focus toward road tax adjustments as a more sustainable form of relief, while continuing its targeted subsidy approach for RON 95 petrol.
According to Anthony Loke, the ministry is carefully evaluating different options to ensure that any reduction in road tax will ease the burden on vehicle owners without significantly affecting government revenue. The study involves multiple considerations, including fiscal impact, policy alignment, and long-term sustainability.
At this stage, no final decision has been made, as the proposal requires detailed analysis and approval. However, the direction is clear — the government is looking for practical ways to provide relief, even if fuel price reductions are off the table for now.
Malaysia