Malaysia’s Ministry of Transport (MoT) is currently reviewing proposals to reduce its road tax for diesel-powered vehicles.
Striking a balance
Transport Minister Anthony Loke announced last week that the MoT is reviewing a proposal to reduce road tax, specifically for diesel cars.
This proposal was submitted to the ministry as an attempt to reduce expenses for motorists – with Loke noting that the ministry needs to take a balanced approach in their review.
“We must strike a balance, as not all diesel-powered vehicles are ineligible for subsidies, with some already benefitting from targeted or subsidised pricing,” he said. “We need to assess how best to support those who do not receive subsidies, possibly through a reduction in road tax.”
“At the same time, any reduction will have implications on government revenue, so this must be carefully considered,” Loke further noted.
The Minister said that the ministry is working on its evaluation of the proposal and hopes that the results approval will be announced soon.
Loke’s announcement follows an earlier one made by the country’s Prime Minister in late April.
Earlier announcement
The review follows earlier comments from Malaysian Prime Minister Datuk Seri Anwar Ibrahim, who indicated that the government is actively exploring ways to provide relief for diesel vehicle owners
“I have asked the Transport Ministry and the secretary-general to find ways so that in the near future we can reduce road tax for diesel vehicles. That can be done,” he announced.
Malaysia has around 1.8 million diesel vehicles, accounting for a small portion of the country’s national fleet.
The Prime Minister said that while there is comparatively small number of diesel vehicles, owners still bear the burden of rising fuel related costs.
PM Anwar commented that reducing fuel prices may not be possible for both petrol and diesel. Lowering prices for all fuel will cost the government MYR 7 billion (AUD $2.5 billion) per month.
“That is an additional burden we have to bear. It involves public funds — taxpayers’ money — and must be managed carefully,” he said. “At this point, we cannot afford to reduce fuel prices further. But road tax is an area where we can provide some relief.”
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