What is Road Tax and How It Works In Malaysia

Road tax is a tax fee paid annually by the owner of a vehicle used on the road. Road tax and car insurance are both obligatory for car owners to have. The bigger the vehicle, the more charges are required to be paid. 

Road charges are utilized for the countrywide maintenance of the road network. The amount of road tax depends on the kind of vehicle; whether it runs on diesel or petrol, the capacity of the engine, and if the car is used for commercial or personal purposes. 

Cars operating in East Malaysia pay a lesser tax amount than West Malaysia due to the variations in road conditions, amenities, and infrastructures.

Driving with an expired road tax is a crime, and you won’t be able to lodge an insurance claim to pay for the cost of the damage if an accident occurs. You will either be called by the JPJ officer or obliged to participate in a court hearing if you are found driving without a valid road tax.

Private automobiles are classed as ‘saloon’ vehicles. Examples of ‘saloon’ vehicles are hatchbacks, convertibles, and sedans. On the other hand, examples of ‘non-saloon’ vehicles are MPVs, SUVs, or pickup trucks. The road tax price for ‘saloon’ vehicles differs from ‘non-saloon’ vehicles.  Furthermore, for the same engine displacement, ‘Company-Registered Saloon’ will have to pay a higher amount than ‘Private Saloon.’ A different rule applies to ‘non-saloon’ automobiles.

So the next concern would be to figure out how much the road tax costs for vehicles in Malaysia. We have got that covered for you!

See Also: Best Car Insurance in Malaysia (2022)

Road Tax Price for Cars in West Malaysia

Engine (cc)	Base Rate	Progressive Rates	Road Tax Amount
1,000 and below	RM20	–	RM20
1,001 – 1,200	RM55	–	RM55
1,201 – 1,400	RM70	–	RM70
1,401 – 1,600	RM90	–	RM90
1,601 – 1,800	RM200	RM0.40	RM200 – RM280
1,801 – 2,000	RM280	RM0.50	RM280 – RM380
2,001 – 2,500	RM380	RM1.00	RM381 – RM880
2,501 – 3,000	RM880	RM2.50	RM882 – RM2,130
3,001 and above	RM2,130	RM4.00	RM2,134 +

Road Tax Price for Motorcycles in Malaysia

Engine Capacity	Fixed Rate
150 and below	RM2
151 – 200	RM30
201 – 250	RM50
251 – 500	RM180
501 – 800	RM250
More than 800	RM350

 

How do you calculate the amount of your road tax?

Let’s go over an example for a Proton X70.

If you look at the car specifications, the car has a 1,799cc engine. Looking at the ‘Road Tax Price for Cars in West Malaysia’ table, Proton X70 that we are talking about falls between 1,601 and 1,800 cc. We can see it has a base rate of RM200. 

To calculate the progressive rate we take the 1,799cc and minus it with the 1,601cc in the table. 

Total of progressive rate:

= (1,799cc – 1,601cc**) x RM0.40

= 198 x RM0.40

= RM79.60 

**The 01cc needs to be calculated into the progressive rates. So, minus 1600cc instead of 1601cc.

Your road tax amount:

= Total of progressive rates + Base Rate

= RM79.60 + RM200

= RM279.60

And that is how you can calculate the amount of your road tax yourself! Like how we mentioned previously, it’s important to pay your road tax on time. Don’t delay such important things as renewing your road tax or there will be heavy consequences.

 

Where To Renew Road Tax

Option 1: Road Transport Department (JPJ)  

Renewing your road tax at JPJ is possible. You just have to locate the nearest JPJ Office, queue, and get it done. Look out for a long queue because JPJ Offices are usually packed with people. Alternatively, you can head to the post office and also renew your road tax over there but an appointment is needed beforehand.

Who can renew my road tax?

The road tax renewal application can be submitted by the vehicle owner or a representative.

If the person present to renew the road tax is the owner of the registered vehicle, he must submit his MyKad for reading and record purposes into the MySikap system through the MyKad reader.

However, if you send a representative, he does not need to bring the MyKad of the registered vehicle’s owner. He only needs to submit his own MyKad.

How to renew road tax at JPJ

1. Make sure you have prepared the necessary documents:

• Identification card (IC)
• Vehicle ownership certificate or copy of vehicle grant
• Cover note insurance

2. Go to the nearest JPJ office, JPJ branch, or any UTC counter.

• The full list of JPJ offices is here.
• The full list of UTC offices is here.

3. Get the queue number.

4. Chill in the waiting area and wait for your number to be called.

5. Go to the counter when your number is called and get your road tax renewed.

6. Done!

 

Option 2: Pos Malaysia

Uneasy feelings and worry come along with expired road tax. Constantly worrying about getting summoned. Here’s how you can renew road tax at Pos Malaysia, besides getting it done at JPJ. The steps are exactly similar to getting it done at JPJ.

How to renew road tax at Pos Malaysia

1. Make sure you have prepared the necessary documents:

• Identification card (IC)
• Vehicle ownership certificate or copy of vehicle grant
• Cover note insurance

2. Go to any Pos Malaysia office that is nearest to you.

3. Get the queue number.

4. Chill in the waiting area and wait for your number to be called.

5. Go to the counter when your number is called and get your road tax renewed.

6. Done!

 

*For anyone who has lost the copy of your vehicle grant, you can still renew your road tax at the Post Office. You just need to bring your IC or passport. If you are only a representative, the owner’s IC is not required. 

The Pos Malaysia Centres have been reopened nationally since 9 August 2021 to facilitate the new directive, counter services for licenses, or road tax renewals.

Given the present pandemic situation, Pos Malaysia announced that they won’t accept walk-ins to avoid crowds. Vehicle owners need to make an online appointment on the Pos Malaysia Website or the Pos Malaysia app to renew their road tax at the post office.

 

Option 3: Add on road tax when you renew your insurance with Fatberry!

Skip the queue and avoid the “I was busy, I forgot” because now you can renew your road tax online!

You don’t need to queue or hire a runner to buy/renew your road tax anymore. Simply add on the road tax as you renew or buy your car insurance with FatBerry!

 

What happens if you don’t renew your vehicle insurance on time?

Problems will arise with your insurance policy if you don’t renew your vehicle insurance on time. However, if you feel like you are experiencing financial constraints, but your insurance renewal is due just around the corner, there is a leeway for that. Fortunately, insurance providers usually provide a grace period. Here are five(5) repercussions that you will face if you don’t renew your vehicle insurance on time:

1. Your Road Tax Cannot Be Renewed

Section 14(4) of the Road Transportation Act (RTA) 1987 states that if you are caught driving without a road tax, you can be fined RM3,000. The road tax and auto insurance of your car work in conjunction. So you can’t renew your road tax at the Road Transport Department (JPJ) without valid car insurance. 

You are driving illegally if you proceed to drive with an expired road tax. Furthermore, if the JPJ summons you, you are required to settle it at the court and. You can get summoned by the JPJ or the police. 

Your vehicle road tax and insurance normally expire at the same time. This makes it easier for you since you can just get it done on the same day. Once again, you cannot renew your road tax without valid insurance.

2. Your policy will get terminated.

If you skip or make late payments, chances are your insurance provider will terminate your insurance and your vehicle will not be insured anymore.

You will not be protected from the financial effect of car damage or losses resulting from an accident or any unlucky incident without vehicle insurance. This means that you won’t be able to file a claim from the insurance company.

3. The Lapse Of Your Insurance

Your insurance will lapse if you don’t renew your motor insurance or make delayed payments. You will not be covered for some time when you have a deficiency in coverage.

Fortunately, your coverage won’t lapse right away since insurance undertakings frequently allow insurance policyholders a thanksgiving period to pay your premium before it officially delays.

The grace period is normally 30 days following the end of your policy but may vary by provider. This is something you should confirm truly with your insurance provider.

4. There will be an increment in your new premium

You are seriously mistaken if you thought you could save cash by skipping or renewing your insurance later. If possible, avoid doing so because you can end up paying a greater amount on your next insurance renewal.

5. Your Credit Value May Be Affected

Your insurance will lapse if you don’t renew your vehicle insurance or make delayed payments. You will not be covered for some time when you have a deficiency in coverage.

If you are a car owner, you should know that a good credit score is essential. If you are a young adult just starting, maintaining your credit score between 300-850 is vital. The credit score is an indicator of your ability to repay loans.

It’s terrible for your credit score to delay or skip your car insurance payment. Insurance renewals payment is the type of information collected by the Central Crédit Reference Information System, a credit reporting system managed by Bank Negara Malaysia, which credit agencies will later use to compute the credit score.

 

FAQs

How to check when my road tax is expiring?

Road tax is usually renewed annually. You may quickly verify the date online through the JPJ portal if you don’t remember when your road tax is due. Once you have access to the site, follow these four (4) simple steps;

1. Motor vehicles license expiry investigation search.
2. Choose your ID Category  (MyKad).
3. Fill in your ID and the registration number of your vehicle.
4. Click submit. 

Details such as the start date and end date of your road tax and the date of the expiration of your insurance will be available on the portal. This way, you won’t miss the renewal deadline.

Why is my road tax expensive?

The bigger the engine capacity, the higher the road tax price. 

Are there other factors affecting the price of road tax in Malaysia?

Several factors determine the value of the road tax in Malaysia. Vehicle type, vehicle specs, vehicle registration location, ownership type, and vehicle purpose are all considered. West Malaysians and East Malaysians pay different rates due to the reasons mentioned at the beginning of the article.

Is there anywhere else I can renew my road tax?

Renewing your road tax is obviously much easier now with technology and online resources available. If you’re thinking about purchasing/renewing your car insurance and road tax, you can easily do it with FatBerry!

 

*The content provided is for informational purposes only. FatBerry makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. Should you require more information on our products, please refer to fatberry.com or contact us.