Do you know that vehicles and motorbikes all need road tax, car tax, or Vehicle Excise Duty in Malaysia? Or are you completely confused about the road tax system in Malaysia? Road and car tax, or Vehicle Excise Duty, is a responsibility by any car or motorcycle owner, which vehicles (either private or company) are used on public roads - paying tax is compulsory if you own one. Car tax rates are based on different factors. Find out these and more in this article.
What Is Road Tax?
Road tax is a fee you pay on your vehicle or motorcycle if you want to drive on the road. If your car is duly registered in the country – it has a number plate – then you must pay road tax. The tax money is paid directly into the central government purse used for road work and maintenance. Road tax is administered by the Road Transport Department (JPJ).
How Much Do I Pay For Road Tax?
Are you ready to renew your vehicle road tax? The amount you pay for road tax depends on:
The vehicle's engine cubic capacity
Type of use (private or company)
Type of car
Vehicle's Engine Cubic Capacity
The bigger the engine size of your vehicle, the more tax you pay. The price increase is because it's believed that the bigger the vehicle's engine size, the more the car pollutes the environment. Hence, big engine vehicle owners have to pay more for driving more polluting cars. It is to encourage ownership of less polluting vehicles.
Location (East or West Malaysia)
The location you reside in plays a significant role in determining the amount you pay for Malaysia's road tax. If you stay in East Malaysia, you will probably be spending a lesser amount than others in West Malaysia. The condition of Sabah and Sarawak road infrastructure and the network isn't the same as the ones in Peninsular - therefore, driving from one place to another in areas like Sabah and Sarawak takes a longer time.
Similarly, many people in this location (Sabah and Sarawak) drive four-wheel drive vehicles with strong engines due to the geographical condition, rugged terrain, and inferior road surface. Due to these reasons, vehicle road tax rates are cheaper in East Malaysia. Road Transport Department (JPJ) said that the more affordable road tax structure in Sabah & Sarawak is meant to compensate for all the inadequacies in that location. Furthermore, in locations such as Labuan, Langkawi, and Pangkor, if your vehicle engine capacity is 1,000cc or less, you pay a flat fee of RM20; however, If your vehicle engine capacity is more than 1,000cc, you'll have to pay 50% less of the road tax price being paid in Sabah or Sarawak.
Type Of Use (Private or Company)
The type of use of your vehicle also plays a role in determining the amount you pay for road tax. If your vehicle is registered as a private car, you will pay less money than cars registered as a vehicle.
Type Of Vehicle
All vehicles in Malaysia are divided into two broad sections:
Saloon: Sedan / Hatchback / Coupe / Wagon / Convertible
Non-Saloon: MPV / SUV / Pick-ups / Commercial
These two categories also pay a different amount for vehicle road tax. Private cars are classified as 'saloon' vehicles; they pay a lesser fee to Non- Saloon cars. However, MPV, SUV, or pickup trucks are classified as non-saloon vehicles and pay a higher rate than saloon cars. For the Non- Saloon cars category, it does not matter if it's private or company-owned; you pay the same amount.