Reduced Road Tax, Excise Duty

Festive Cheer In The Form Of Reduced Road Tax, Excise Duty

PEKAN, Dec 30 (Bernama) -- As the country celebrates Aidiladha Sunday and ushers in the new year on Monday, Malaysians Saturday received news of an early gift from the government in the form of lower road tax and excise duty on vehicles effective Jan 1.

Deputy Prime Minister Datuk Seri Najib Tun Razak said the reduction in road tax and streamlining of excise duty on cars and motorcycles effective Jan 1 is aimed at lifting some of the financial burden faced by the people.

"The government will incur a revenue loss of about RM250 million annually from this exercise to reduce road tax and streamline excise duty," he told reporters after presenting cash prizes to excellent students of the Ujian Pencapaian Sekolah Rendah (UPSR) examination, here.

The reduction in road tax covers eight categories -- private cars owned by individuals, private cars owned by companies, and vehicles owned by individuals or companies apart from cars, motorcycles, taxis, rental cars, buses and commercial vehicles.

"The amount of tax reduction is according to engine capacity while for commercial vehicles it is based on the weight and load," Najib added.

The rate of reduction differs between petrol and diesel engine vehicles and those in the peninsula and Sabah and Sarawak.

Road tax for privately owned cars of less than 1000cc (petrol and diesel) drop by RM10, petrol engine vehicles of 3001cc to 5000cc by RM30 while for diesel engine vehicles of 3001cc to 5000cc it is a RM130 drop.

For individual and company vehicles apart from cars (petrol and diesel engines), with 1000cc it is a drop of RM10, while for 3001cc to 5000cc petrol engine vehicles it is a RM25 drop and diesel engine vehicles with 3000cc to 5000cc it is a big drop of RM237.

For taxis (petrol) with 1400cc to 5000cc engines the road tax drop is between RM22 and RM198.

For diesel engine taxis with 1400cc to 5000cc capacity, the drop is between RM66 and RM363.

For hire cars (petrol engine) with 1400cc to 5000cc, it is a drop of between RM22 and RM175 while for diesel engine vehicles it is a drop of between RM66 and RM363.

For commercial goods vehicles (petrol engine), with load capacity of 1000kg to 52,500kg the road tax is reduced by between RM28 and RM118 while for diesel engines, the drop is between RM201 and RM486.

On the streamlining of excise duty on cars and motorcycles, Najib said cars with engine capacity of more than 3,000cc will pay the same duty as that of those with engine capacity of between 2,500cc and 3,000cc.

"Motorcycles with engine capacity of more than 200cc will pay the same excise duty as that for motorcycles engine capacity of between 150cc and 200cc," he added.

Najib had earlier handed over 299 head of Aidiladha sacrificial cattle, 12 of them his own contribution, for distribution to 52 mosques and 124 suraus in his Pekan parliamentaryconstituency.