The proposal to reduce the road tax fee requires a comprehensive study as any decision will have implications on the country’s revenue collection, says Transport Minister Anthony Loke.
Loke said that road tax collections contribute about RM3 billion to government revenue.
"We will look at how the current road tax fee structure is set – there is a need to conduct a comprehensive study on it," he said when winding up the debate on the motion of thanks for the royal address for his ministry at the Dewan Rakyat yesterday.
In the meantime, Loke said the transport ministry was conducting a study on the road tax structure for electric vehicles (EVs), for which a tax holiday is in place until 2025.
He said the road tax structure for EVs should be in line with the government’s policy on promoting the vehicles.
"To promote and encourage the use of EVs, there must be incentives (such as) competitive road tax rates and charging facilities," he said.