Earlier this week, the government announced a new road tax structure for electric vehicles (EVs), which brings about much cheaper rates across the spectrum compared to the previous one determined in 2019.

During the Q&A session following the briefing, we asked transport minister Anthony Loke if there was any plan to review the existing road tax – or lesen kenderaan motor (LKM) – structure for internal combustion engine (ICE) vehicles and reduce the rates in that.

The question has of course been posed before, but the answer remains the same, with no cheer in store for motorists with ICE vehicles. As Loke explained, the government does not intend to make changes to the LKM fees for ICE vehicles or reduce the rates.

He said that existing rates – which are based on engine displacement capacity – are already low and reasonable. “For existing ICE vehicles, at this time we are not making changes to the road tax because most people still use ICE, and if we want to increase the rate, it might affect their costs,” he said.

“If we were to make changes, the rate could be higher, and if the rate is higher then the burden will be on the public, what more with (fuel) subsidy rationalisation, so we are not looking at that,” he added.

Last year, Loke had said that while a review of the LKM structure was being considered, the rates would likely remain untouched should the exercise come about.

“This is because road tax is one of the biggest revenue earners for the government, and that any decision that could decrease the country’s revenue, such as lowering the road tax fees, would only create a negative impact,” he said then. Last year, road tax generated almost RM3 billion in revenue for the government, according to the road transport department (JPJ).

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