Malaysia Proposes New Road Tax System
Malaysia’s Ministry of Transport is planning major changes to the Road Transport Act 1987, which are expected to be tabled in Parliament soon.
Under the proposed rules, vehicle owners may need to declare the main location where their vehicle is used when renewing road tax or registering a new vehicle. Road tax rates could then be calculated based on that declared location.
The move is intended to close the loophole that allows some vehicle owners to pay lower road tax rates by registering their vehicles in Langkawi, Labuan, Sabah, or Sarawak, even though the vehicles are mainly used in Peninsular Malaysia.
According to the Ministry, the changes aim to improve road tax collection and strengthen JPJ enforcement efforts. However, details on how the system will be monitored and enforced have not yet been revealed.
Malaysia