Govt can't abolish road tax, country's major revenue: Loke

The government cannot abolish the road tax as it is one of the country’s major sources of revenue, said Transport Minister Anthony Loke.

He said the Road Transport Department (RTD) collects about RM4 billion annually, half of that amount being from road tax.

“Road tax is one of the revenue sources for the government. If the government were to waive everything, then the government would not have resources. Then how are we going to manage the country?

“The people should understand that in any country, the government needs to collect taxes and road tax is one of the important ones.

“RTD collects over RM4 billion a year and a big percentage of it was from road tax. If I am not mistaken, about RM2 billion,” Loke said.

He was speaking during a press conference after the launching ceremony of the Kuala Lumpur Federal Territory DAP Convention at Jalan Pudu, Kuala Lumpur.

He was asked to comment on calls by internet users for the government to abolish the road tax altogether.

The calls came after Loke on Friday announced that the government no longer requires motor vehicle licences, also known as road tax stickers, to be displayed on privately owned vehicles by Malaysians.

He said this was part of the ministry’s efforts towards digitalisation.

Loke reiterated that the new policy gives people the option of using digital road tax documents and those who want to continue using physical road tax stickers can do so.

“I know some said this move makes it difficult especially for senior citizens and those living in rural areas where the internet connection is bad.

“But I would like to stress here, we are not making this mandatory. You can still use the old sticker road tax,” he said.

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