The Malaysian Transport Ministry is studying the possibility of implementing a flexible road tax payment system that will be calculated based on vehicle conditions, mileage and drivers’ traffic offences, according to a report by The Malay Mail.

“This flexible road tax payment system is an incentive from the government to prudent drivers to reduce their road tax rates. With the advancement of technology, we can now know their mileage, so the lower the mileage the lower the road tax rates,” said Transport Minister, Datuk Seri Liow Tiong Lai.

This effort is in line with the recently implemented phased liberalisation of motor insurance, also known as detariffication that aims to, among others, promote fair premium rates based on the risk profile of policyholders.

However, Datuk Seri Liow did not offer any more detail on the system or when Malaysians can expect it to be implemented.


To know more about second phased of motor detariffication that was launched on July 1st, go here.