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The Malaysian government is considering the reduction of road tax for diesel vehicles to mitigate the impact of increasing fuel costs, said prime minister Datuk Seri Anwar Ibrahim, reported New Straits Times.
The matter has been discussed with transport minister Anthony Loke, and the transport ministry has been tasked with working out the details for implementation in the near term, Anwar said.
“I have asked the Transport Ministry and the secretary-general to find ways so that in the near future we can reduce road tax for diesel vehicles. That can be done. There are about 1.8 million diesel vehicles. Although the number is small, they are facing problems because diesel prices have gone up,” the prime minister said in a speech.
Having said that, Anwar said that lowering fuel prices was not viable at present because fuel subsidies present a heavy fiscal burden, which costs the government around RM7 billion a month, and said that the government would maintain its targeted subsidy approach for RON 95 petrol, saying that Malaysia’s fuel prices are relatively low compared to many oil-producing countries.
“At this point, we cannot afford to reduce fuel prices further. But road tax is an area where we can provide some relief. We have to look at the overall situation — whether we have sufficient funds and income. If there is room, we can consider further reductions,” the prime minister continued.
Subsequently, transport minister Anthony Loke said that the transport ministry is studying options for the reduction of road tax for diesel vehicles, aimed at easing financial burden on diesel vehicle owners while safeguarding government revenue.
“This mandate by the Prime Minister is clear. We must help vehicle owners, particularly those affected by the current pricing structure. But any decision must take into account financial implications,” the transport minister said.
While fuel pricing in Malaysia currently operates on a floating mechanism with targeted subsidies, not all diesel vehicle owners qualify for the financial assistance, which has increased cost pressures, Loke said. The review involves multiple considerations, including revenue trade-offs and policy alignment, he said.
“This is not something that can be decided overnight. It involves several implications, including how much revenue the government is prepared to forgo,” the transport minister said.
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[[{“value”:”The Malaysian government is considering the reduction of road tax for diesel vehicles to mitigate the impact of increasing fuel costs, said prime minister Datuk Seri Anwar Ibrahim, reported New Straits Times. The matter has
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