Road tax is required for all vehicles on public roads, regardless of how often motorists use them. In addition, our toll roads need for-fee drivers to pay based on how much usage they make and what type of vehicle they drive. Depending on the size of the engine and the type of fuel, road tax rates might differ. For private registrations, road tax for company-owned vehicles can be threefold higher than for individual-owned cars, and the rate for various commercial types varies. Learn the basis of road taxes depending on engine capacity and how to calculate your road tax.
Introduction Malaysia Road Taxes
Vehicle owners are required to pay a road tax to use public roads. Various factors influence the tax amount, including the type of vehicle, vehicle specifications, vehicle registration location, and type of ownership. Malaysia is one of the countries that collects its road tax annually. Displaying the road tax is required on vehicles with a valid tag. The road tax sticker is at the bottom right corner of the windscreen vehicles, and there are clear indications on the road tax sticker of the vehicle registration number, the road tax price, and the expiration date. Road tax stickers are for one-time usage. If the sticker is tampered with, it will tear and become invalid.
How To Calculate Malaysian Road Taxes
The value of the road tax varies according to a variety of factors in Malaysia. These include the vehicle type, vehicle specs, location of vehicle registration, and type of ownership. There are different rates of road taxation in West Malaysia and East Malaysia. Due to the state of the roads and the infrastructure supporting them, the road tax is lower in East Malaysia. According to Malaysia’s road tax law, as the engine displacement of a car increases, the road tax also increases. The basis of the calculation of road tax is on engine capacity.
Since this method of calculating road tax has become widely used; manufacturers have begun selling cars with smaller displacement engines, generally turbocharged or hybridized. Malaysian cars typically have engine displacements of less than 2.0 liters. The minimum road tax for an engine-driven car is RM20 for vehicles with engines under 1,000 ccs. The base rate and progressive rate are combined when calculating the road tax for a car. As engine displacement increases, the progressive rate increases. In West Malaysia, the tax for cars that exceed the 3,000-cc mark is RM4 per cubic centimeter.
Road tax rates will also be affected by the type of vehicle owned. Vehicles can be either privately owned or owned by a company. Electric vehicles are subject to different road tax calculations based on the car’s maximum power output.
Why Is Road Tax Based On Engine Capacity?
Malaysian road and vehicle taxes are to control traffic congestion and reduce CO2 emissions. Nonetheless, reducing or managing road congestion is an environmentally friendly measure. In addition, Malaysia’s road tax system does encourage people to use fuel-efficient vehicles that emit fewer emissions. For bigger cars – whose engine capacity is by the road tax – the road tax is higher since they use more fuel and emit more pollution than small cars. The primary goal of this tax is to promote the purchase and use of more fuel-efficient and environmentally-friendly vehicles.