10 minutes
KUALA LUMPUR: The Road Transport Department (RTD) has formed a task force to counter massive revenue leakages from motorists who underpay road tax charges for vehicles registered in four zones in the country.
The RTD said the task force mission is to develop a mechanism to overcome the issue of owners of vehicles registered in Sabah, Sarawak, Labuan and Langkawi hoodwinking the authorities by paying lower road tax but utilising their vehicles in the peninsular.
Road tax in the said states and islands are much lower compared with the peninsular.
According to the RTD today, an internal audit by the Transport Ministry revealed that loss of revenue through such manipulation exceeded RM50 million via transactions recorded between January and this month.
The RTD also found that over 50% of road tax renewal transactions carried out in the four zones were for vehicles that were used outside the states and islands.
The RTD said it viewed the matter seriously and efforts are being taken to put an end to such manipulation, ensuring that revenue collection benefited the country.
Meanwhile, in reversing its earlier decision, the RTD said the renewal of road tax for all vehicle types and engine capacity can now be carried out as usual at all its offices and appointed agencies in the four zones, including post offices.
The RTD had on Sept 1 ceased the renewal of road tax of vehicles with engines above 2,000cc at post offices in the four zones, allowing renewals only at RTD offices to overcome the issue.
However, Transport Minister Anthony Loke intervened and announced that the decision would be reviewed as it would cause inconvenience to those living in remote areas.
Vehicles registered in the four zones were brought to the peninsular for use by its owners but the road tax for the vehicles were renewed by their agents or friends in the two states and two islands.
