Motor vehicle tax better known as road tax is one of the important aspects of tax administration in Malaysia. Every vehicle owner is required to pay road tax upon renewing their vehicle insurance. Both road tax and vehicle insurance are stipulated under Malaysian road laws.
The two go hand in hand in ensuring the roadworthiness of any vehicle. Let us share what road tax is, its types, payment method and its impact on vehicle owners.
What is road tax?
Road tax is a tax imposed on motor vehicle owners in Malaysia. This tax is one of the government’s main sources of income to finance the development and maintenance of road infrastructure and public transport facilities. This road tax will be paid to government authorities through the Road Transport Department (JPJ) so that the government can maintain good road conditions throughout the country.
This road tax price for vehicles is fixed and does not change unless there’s a revision. It differs based on the type and the value of your insurance. Individuals can choose between 6 months and 12 months for renewals.
Types of road tax in Malaysia
- Motor Vehicle Tax (CKB)
- CKB will be levied on personal and commercial motor vehicles
- CKP tariffs vary depending on the type of vehicle and engine capacity
- Vehicle License Tax (CLK)
- CLK is imposed on every owner of a motor vehicle who has a driver’s license
- Payment of CLK is a condition for renewing a driver’s license
- Road Use Tax (CPUJ)
- CPUJ is imposed on vehicle owners who use roads in selected urban areas
Why is road tax important?
Road tax is enshrined in the Malaysian Transport Act and every vehicle owner who uses the road is obliged to pay for it, as it is used for the maintenance and development of road infrastructure. Indirectly, it can provide comprehensive benefits to all road users in Malaysia.
Vehicle owners who do not pay road tax regularly may face legal problems, such as fines or imprisonment, as well as the risk of losing ownership of the vehicle. Hence, to prevent such things from happening, all vehicle owners should obey the law and pay road tax timely.
How to pay road tax in Malaysia?
Since road tax is inevitable, various payment methods have been introduced over the years to enable Malaysians to pay for it without relying on a single option.
Online
Along with the development of technology nowadays, every vehicle owner no longer has to bother leaving home just to renew their road tax through physical counters. Vehicle owners can now pay road tax online by choosing to pay through the official website of the Road Transport Department (JPJ), the e-Transport platform or through the MyJPJ application.
JPJ counters
If you don’t like using online payment or are not very good at using it, you can also make payments at physical JPJ counters. Despite the availability of various means, JPJ still offers countered services to activate road tax for the public.
Banks and public service agencies
Vehicle owners can also pay their vehicle road tax at banks or some public service agencies that provide road tax payment services. Among the most popular public service agencies and often visited by the public to pay road tax are the post offices and the Urban Transformation Center or UTC.
Bjak
For a convenient and reliable online alternative, the public is recommended to renew road tax and insurance on the bjak.my. Bjak is an insurance comparison platform where you can perform renewals easily. By comparing 18 insurance brands, you can directly buy insurance and renew your car road tax within a few clicks.
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This road tax plays an important role in supporting the development and maintenance of road infrastructure in Malaysia so that everyone can drive safely. Understanding the types of taxes, payment methods, and their impact on legal compliance is a crucial part of vehicle ownership. By complying with tax obligations, we can support the country’s progress in transport and road infrastructure.
Bjak is one of Malaysia’s biggest insurance comparison websites, offering policies from over 10 brands. Visit Bjak today to get your free insurance quote!
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