BATU KAWAN — The Transport Ministry has begun working towards a reduction of road tax rates for diesel vehicles to ease motorists’ burden following the increase in fuel costs.
Transport Minister Anthony Loke Siew Fook said it submitted a proposal to the National Economic Action Council (MTEN) to study a reduction mechanism.
Studies are also being carried out to assess the appropriate reduction rate, as well as implications such as the impact on government revenue.
“Our policy is to set the price of diesel on a floating basis, except for groups that receive subsidies because if we do not set a market price for diesel, it will cause more smuggling.
“To help owners of diesel vehicles, firstly we had the individual BUDI Diesel up to RM400 per month and for owners of buses, lorries and so on, they also receive subsidies through the use of fleet cards.
“So, vehicle owners who do not receive this assistance or subsidy, we will see how to help them in terms of reducing road tax,” he told a press conference, Bernama reports.
Loke was speaking at the Road Transport Department’s (JPJ) 80th Anniversary Celebration here, today.
His remarks follow Prime Minister Datuk Seri Anwar Ibrahim’s remarks today that the the government was considering reducing road tax rates for diesel vehicles in the near future, as a people-friendly measure amidst the fuel price crisis due to the US-Israel war on Iran.
Not all diesel vehicle owners qualify to receive the existing assistance through BUDI Diesel or fleet cards, but Anwar said it is not feasible for the government to cut the price of diesel further.
“Reducing fuel prices is not feasible at this time, but road tax can be (reduced), and there are about 1.8 million diesel vehicles in Malaysia.
“Although the number is relatively small compared with the total, these 1.8 million vehicle owners are affected as diesel prices have increased,” said Anwar, who officiated the JPJ anniversary celebrations today.
Anwar, who is also Finance Minister, also said that the government will maintain its targeted subsidy policy for RON95 petrol through the BUDI MADANI (BUDI95) programme, with fuel subsidies currently amounting to about RM7 billion a month.
He said the government’s priority is not solely on fuel prices, but also on ensuring sufficient supply amid global uncertainties. – April 25, 2026