Bijak-bijak, idea yang bernas: Explore better ways to calculate road tax

Highflyer19

ROAD tax discussions took centre stage recently after it was announced that private vehicle owners no longer needed to display the road tax or carry a physical copy of the driver's licence.

After much confusion, Transport Minister Anthony Loke has cleared the air by saying the MyJPJ app is not compulsory while the road tax sticker and physical driver's licence can still be obtained at Road Transport Department (RTD) offices.

Loke said the digitalisation move was aimed at easing the long queues at RTD offices and potentially save the government RM96 million a year on printing fees.

What is not optional is paying the road tax (or renewing the licence), from which the government earns more than RM2 billion annually.

But could the government earn more and the public paying a fairer rate in accordance to their affordability?

There is presently a disparity and the traditional method of calculating the road tax is outdated and needs to be restructured.

To simplify, the RTD's guidelines summarise that the price of a car's road tax is calculated based on four core factors: engine capacity, location of the vehicle (e.g. Peninsular Malaysia, Sabah or Sarawak, or duty-free zones), vehicle body type (saloon or non-saloon), and ownership type (private or company).

Years ago, it was simply understood that the more expensive the cars, the higher CC their engines were. However, that is no longer applicable with automotive companies introducing smaller engines but with superior performances.

For example, the RM228,800 BMW 218i that has the same road tax price of RM90 as a RM50,900 Myvi X variant as both cars have a 1.5-litre engine; this is the flat rate for 1,401cc to 1,600cc engines.

The current road tax system does not take into account the car's price, its performance or the owner's economic standing.

It's not only imbalance but also complicates matters when the government tries to implement incentives or subsidies based on household income or an individual's earning capacity.

The United Kingdom's Vehicle Excise Duty road tax, for example, is calculated based on the car's on-the-road price and its carbon dioxide emissions. This evens out rates especially when there are electric vehicles (EVs) to consider.

It also takes into account when the car was registered — charges depending on before or after the introduction of the current rates for different pricing.

As of last year, UK car owners could apply to stop paying vehicle tax for cars that were 40 years or older.

Speaking of EVs in Malaysia, there are concerns that road tax rates for them are considered less than favourable should the current exemptions come to an end on Dec 31, 2025.

As per RTD's guidelines from 2019, road tax rates for EVs are calculated based on its power output in watts (W), although most EVs publicly have their power delivery listed in kilowatts (kW). This is then factored by type of vehicle (saloon and non-saloon).

Here's an example without getting into the long formula calculations, BYD's Standard Range Atto 3 (priced from RM149,800) with a power output of 150kW will have a road tax of RM903 (non-saloon EV).

Mercedes-Benz's EQC 400 4Matic (priced from RM393,888) with a 300kW power puts the rate at RM4,503, and so forth.

In contrast, the GLC Coupe, with a 1,991cc internal combustion engine, is priced at RM403,888 and has a road tax of RM436.40.

Thus, the current road tax system needs to be addressed to promote the nation's carbon neutral goals.


https://www.nst.com.my/news-cars-bikes-trucks/2023/02/881920/explore-better-ways-calculate-road-tax

Highflyer19

As of last year, UK car owners could apply to stop paying vehicle tax for cars that were 40 years or older...menarik ni...

Simunggu

estima 3.0cc yg bernilai 20K...road tax RM1000....logic kah?

road-tax

In response to the question about exploring better ways to calculate road tax, there are several innovative approaches and ideas that could be considered:

1. Usage-Based Road Tax: Implement a road tax system based on actual vehicle usage, such as mileage driven or the types of roads frequently used. This could involve installing tracking devices or utilizing GPS technology to accurately measure usage and adjust tax rates accordingly.

2. Environmental Impact Tax: Introduce a road tax system that takes into account the environmental impact of vehicles, including factors such as emissions levels, fuel efficiency, and vehicle weight. This could incentivize the use of cleaner and more eco-friendly vehicles while discouraging the use of high-polluting vehicles.

3. Dynamic Pricing Model: Adopt a dynamic pricing model for road tax that fluctuates based on factors like traffic congestion, time of day, and location. By adjusting tax rates dynamically, authorities can better manage traffic flow and encourage drivers to use alternative routes or modes of transportation during peak times.

4.Integration with Vehicle Technology: Integrate road tax calculations directly into vehicle technology systems, such as onboard computers or smartphone apps. This would provide real-time updates on road tax obligations, making it more convenient for drivers to stay compliant and pay their dues.

5. Incentivized Tax Credits: Offer tax credits or incentives for behaviors that contribute positively to road safety and infrastructure maintenance, such as carpooling, using public transportation, or participating in road maintenance initiatives. This would not only generate revenue but also promote sustainable and responsible transportation practices.

6. Blockchain-Based Road Tax System: Explore the use of blockchain technology to create a transparent and tamper-proof road tax system. This could streamline tax collection, reduce administrative costs, and ensure greater accountability and fairness in the allocation of road tax revenues.

7. Community Engagement and Feedback: Solicit input from the community through surveys, public forums, and focus groups to gather ideas and suggestions for improving the road tax system. By involving citizens in the decision-making process, authorities can ensure that the new tax calculation methods align with the needs and priorities of the population.

8. Multi-tiered Tax Structure: Implement a multi-tiered tax structure that takes into account factors such as vehicle type, size, and usage patterns. This would enable more tailored tax assessments that accurately reflect the impact of different vehicles on road infrastructure and congestion levels.

9. Predictive Analytics: Utilize predictive analytics and data modeling techniques to forecast future road tax revenues and infrastructure needs. By analyzing historical data and trends, authorities can make more informed decisions about tax rates and allocation of funds for road maintenance and improvements.

10. Education and Awareness Campaigns: Launch educational campaigns to raise awareness about the importance of road tax and the benefits of investing in transportation infrastructure. By fostering a better understanding of the link between road tax revenue and improvements to roads, bridges, and public transit systems, authorities can garner public support for innovative tax calculation methods.

Kitty_catz

road-tax replied at 14-2-2024 01:43 PM
In response to the question about exploring better ways to calculate road tax, there are several inn ...

kau ni apa?

kau tinggal sini ke?

kau bot ye?

extensionspc2

In Malaysia, the road tax for vehicles is calculated based on several factors, including:

Engine Capacity (cc): The higher the engine capacity, the higher the road tax. This applies mainly to cars, motorcycles, and other vehicles.

Vehicle Type: Different rates apply to private cars, commercial vehicles, motorcycles, and public service vehicles.

Region: Vehicles registered in Peninsular Malaysia generally have different road tax rates compared to those in Sabah and Sarawak.

Fuel Type: Diesel and petrol-powered vehicles may have different rates, with diesel vehicles typically paying higher road tax.

Vehicle Weight: For commercial vehicles, the weight or Gross Vehicle Weight (GVW) plays a role in determining the tax.

extensionspc2

The variation in road tax prices across different states in Malaysia is due to several factors, including the engine capacity of the vehicle, the type of vehicle, as well as local policies and regulations that may slightly differ between states. Additionally, road tax rates can be influenced by geographical conditions, administrative costs at the state level, and the infrastructure of the roads in specific areas. However, road tax regulations are generally set at the federal level, with only minor differences that may occur between states.