KUALA LUMPUR – The Transport Ministry does not currently plan to reduce motor vehicle licence (LKM) fees for diesel vehicles, but is open to adjusting rates based on relevant factors, said Transport Minister Anthony Loke (Seremban-PH).
In a written parliamentary reply yesterday, Loke explained that many diesel vehicles are eligible for government support through the Subsidised Diesel Control Scheme (SKDS), introduced after Putrajaya announced targeted diesel subsidies in June.
The move is part of the government’s shift from blanket subsidies to a more targeted approach aimed at helping lower-income groups.
“However, the government is willing to study adjusting LKM rates in line with current economic conditions, while considering factors such as the country’s transport policy, sustainable revenue generation, and government capacity,” Loke said.
He also said that the LKM rate has remained unchanged since 2009, with no adjustments in the last 15 years.
Loke was responding to a question from Bersatu MP Kalam Salan (Sabak Bernam-PN), who asked if the ministry planned to reduce road tax for personal diesel vehicles.
Subsidies for diesel used by low-income groups, including fishermen, farmers, school buses, and ambulances, will continue under the targeted subsidy scheme.
Putrajaya is also expected to announce targeted subsidies for RON95 petrol sometime next year, as mentioned by Prime Minister Datuk Seri Anwar Ibrahim (Tambun-PH) in his Budget 2025 speech last month. – November 12, 2024