Government considering lowering road tax on diesel vehicles to help the people

THE government is looking into reducing road tax for diesel vehicles as an effort to reduce the cost-of-living pressure following economic uncertainty and the global energy crisis.

Prime Minister Datuk Seri Anwar Ibrahim said the measure was among the approaches that could be implemented in the near future, compared to reducing fuel prices, which are currently facing financial constraints and supply factors.

He said that although diesel use involves about 1.8 million vehicles in the country, the impact is still felt, especially in certain sectors, including transportation and business.

“Some see this as a government issue alone, but the truth is that the government represents the people, involving taxes and national revenue that is used to help the people. In this regard, following the diesel issue, I have discussed with the Minister of Transport to find a way so that in the near future the road tax for diesel vehicles can be reduced.

“At the moment, we cannot afford to lower the price of oil, but reducing the road tax is a feasible measure,” he said when speaking at the Road Transport Department (JPJ) 80th Anniversary Celebration today.

According to him, the government needs to take a cautious approach in dealing with the fuel issue, given the high subsidy burden as well as the risk of supply disruptions due to global conflicts.

The government is currently bearing an additional RM7 billion a month for fuel subsidies, so any decision must take into account the country's financial position.

At the same time, Anwar stressed that Malaysia will still maintain targeted subsidies for certain groups, including fishermen, farmers and the public transport sector, to reduce the impact of the diesel price hike.

He added that the government's current priority is not only to address the price issue, but also to ensure the stability of the country's energy supply in the face of global uncertainty. – April 25, 2026