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Malaysia considers cutting road tax for diesel vehicles

Prime Minister Datuk Seri Anwar Ibrahim said he has asked the Transport Ministry to identify a suitable mechanism to implement the reduction, taking into account the impact of higher diesel prices on users, particularly sectors that still rely on diesel vehicles.

Malaysian Prime Minister Datuk Seri Anwar Ibrahim at at the 80th anniversary celebration of the Road Transport Department on April 25, 2026. (Photo: theedgemalaysia.com)
Malaysian Prime Minister Datuk Seri Anwar Ibrahim at at the 80th anniversary celebration of the Road Transport Department on April 25, 2026. (Photo: theedgemalaysia.com)

Kuala Lumpur (VNA) - The Government of Malaysia is weighing a reduction in road tax for diesel-powered vehicles to ease the burden on motorists following a surge in diesel prices.

Prime Minister Datuk Seri Anwar Ibrahim said he has asked the Transport Ministry to identify a suitable mechanism to implement the reduction, taking into account the impact of higher diesel prices on users, particularly sectors that still rely on diesel vehicles.

Reducing fuel prices is not feasible at this time, but road tax can be, and there are about 1.8 million diesel vehicles in Malaysia. Although the number is relatively small compared with the total, these 1.8 million vehicle owners are affected as diesel prices have increased, he said.

Anwar, who is also finance minister, also said that the government will maintain its targeted subsidy policy for RON95 petrol through the Budi Madani (Budi95) programme, with fuel subsidies currently amounting to about 7 billion MYR (1.8 billion USD) a month.

He said the government’s priority is not solely on fuel prices, but also on ensuring sufficient supply amid global uncertainties./.

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VNA
#Malaysia #road tax #diesel vehicles Malaysia
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