Transport minister confirms MTEN to study lowering road tax for non-subsidised diesel owners

Transport minister confirms MTEN to study lowering road tax for non-subsidised diesel owners



Transport Minister Anthony Loke Siew Fook speaks to reporters during the 80th Road Transport Day celebration at the Penang State Stadium in Batu Kawan on April 25, 2026. — Bernama pic

Saturday, 25 Apr 2026 2:48 PM MYT


BATU KAWAN, April 25 — The Ministry of Transport has officially submitted a proposal to the National Economic Action Council (MTEN) to study a reduction in road tax for diesel vehicles, Transport Minister Anthony Loke confirmed today.

The move follows an instruction from the prime minister and is part of the government's effort to explore a more comprehensive approach to ease the financial burden on diesel vehicle owners who are not covered by existing subsidy schemes, Bernama reported.

Speaking at the 80th-anniversary celebration of the Road Transport Department (JPJ) here, Loke explained that while diesel prices are now set on a floating basis to curb smuggling, the government is looking for other ways to assist those affected.

“To assist diesel vehicle owners who do not receive any assistance or subsidies, we will look at how to help them in terms of reducing road tax,” he said.


Loke noted that the government already has targeted subsidy programmes in place, such as the individual BUDI Diesel scheme which provides up to RM400 per month, and the fleet card system for commercial vehicles like buses and lorries.


The proposed road tax reduction is aimed at those who fall outside these categories.

He added that further studies are underway to assess the implications of the proposal, including the appropriate rate of reduction and its impact on government revenue. An announcement is expected in the near future.


Earlier at the same event, Prime Minister Datuk Seri Anwar Ibrahim said that he had asked the Ministry of Transport to identify a suitable mechanism for the reduction, acknowledging the impact of the diesel price increase on certain users.

The anniversary celebration also saw the launch of a new version of the MyJPJ smart application and the appointment of national songstress Datuk Seri Siti Nurhaliza Tarudin as a Road Safety Icon.