Road tax renewal at post offices to continue as govt mulls way to plug leakages

PUTRAJAYA: The public will be able to continue to renew road tax at post offices while a special task force look into ways to plug leakages caused by underpayment of road tax said to have resulted in revenue losses in the millions.

Transport Minister Anthony Loke said the leakages needed to be plugged as it would not only lessen the country’s revenue, but would also be unfair to other private vehicle users who paid as they should.

According to reports, some vehicle owners chose to pay road tax at post offices in Sabah, Sarawak, Labuan and Langkawi as the fees were cheaper compared to other parts of the country.

The Road Transport Department (JPJ) then ordered the suspension of road tax renewal in post offices in the four locations effective Sept 1.

The decision did not go down well with many who use the post office to renew their road tax.

“We will look at the best way to plug the leakage and there is a possibility that this (leakage) can be stopped if we no longer allow vehicle owners to renew their road tax at post offices," Loke said.

"However, this move will cause inconvenience to the public especially those living in rural areas.

“We are looking at various options and for the time being, while a study is being conducted, the existing channel to pay road tax remains the same, ” he added after attending the weekly Cabinet meeting on Wednesday (Sept 4).

Loke said among initiatives being looked into was to integrate JPJ’s MySikap online service with that of the Customs Department.

“We are also looking at amending the law so that enforcement and prosecution can be taken against vehicle owners who commit this offence.

"All these are being studied by the taskforce, ” he said.

On Sept 3, the JPJ said that it has set up a special task force to address the issue of underpayment of road tax, resulting in losses of more than RM50mil in revenue in the first eight months of this year alone.

Records shows that more than 50% of the road tax renewal in Sabah, Sarawak, Labuan and Langkawi were for vehicles which were registered and used in other states and territories.

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