Penang: The Transport Ministry (MoT) has proposed to the National Economic Action Council (MTEN) secretariat a mechanism to reduce road tax rates for diesel vehicles to help ease the burden on the public following rising fuel costs. Its minister, Anthony Loke Siew Fook, stated that the proposal aligns with the government's efforts to adopt a comprehensive approach to assist diesel vehicle owners affected by changes in fuel prices.
According to BERNAMA News Agency, Loke emphasized that diesel prices are currently set on a floating basis to ensure market transparency and curb leakages and smuggling activities. He noted that the policy is to float diesel prices, except for groups receiving subsidies, as setting prices below market levels would lead to more smuggling. To assist diesel vehicle owners, the government currently provides the BUDI Diesel Individual subsidy of up to RM400 a month, while bus and lorry operators receive subsidies through the fleet card system.
For those who do not receive such assistance, Loke mentioned exploring ways to help, including reducing road tax. He discussed these efforts at the 80th anniversary celebration of the Road Transport Department (JPJ) and the JPJ MADANI Mega Carnival at the State Stadium grounds. The event was officiated by Prime Minister Datuk Seri Anwar Ibrahim and attended by Penang Chief Minister Chow Kon Yeow, Chief Secretary to the Government Tan Sri Shamsul Azri Abdul Bakar, and JPJ director-general Datuk Aedy Fadly Ramli. The event also saw the launch of the new version of the MyJPJ mobile application, an integrated platform offering various JPJ services in a modern, efficient, and user-friendly format. Additionally, national songstress Datuk Seri Siti Nurhaliza Tarudin was named 'Road Safety Icon'.
Loke revealed that further studies are being conducted to assess the implications of the proposal, including the appropriate reduction rate and its impact on government revenue, with an announcement expected soon. Earlier, Prime Minister Anwar mentioned that the government is considering reducing road tax for diesel vehicles in the near future to alleviate the public's burden due to the increase in fuel prices. He stated that MoT has been tasked with identifying a suitable mechanism, considering the impact of higher diesel prices on affected users, particularly sectors that still rely on diesel vehicles.