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Fact Check: Can Luxury Car Owners in M’sia Avoid Exorbitant Road Tax & Insurance by Paying a Mere RM300 Fine?

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Source: Harian Metro & JPJ | Facebook

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Recently, there have been many instances of the Road Transport Department (JPJ) seizing luxury vehicles in Malaysia for a variety of offences under the Road Transport Act 1987. However, the most common offences committed by owners are not having a valid Motor Vehicle License (LKM), colloquially known as road tax, and valid insurance coverage for the luxury vehicles.

While some of these owners claimed they didn’t renew their luxury vehicle’s road tax and insurance due to financial issues, a majority of them actually believed that they could ‘save’ on paying an exorbitant amount for road tax and insurance by simply paying the summons for the offence. For example, one vehicle owner was quoted by Berita Harian as claiming that the summons is only between RM300 and RM3,000, which dwarves the cost of over RM15,000 for renewing road tax and insurance for their vehicle.

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For illustration purposes

Well, this belief couldn’t be further from the truth, as it was debunked by Transport Minister Anthony Loke Siew Fook himself recently.

 

Luxury vehicles can be seized for no valid road tax and insurance, owner must settle all dues to get them released

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For illustration purposes

Speaking to reporters after officiating a launch event in Kuala Lumpur on Thursday (August 7), Loke was quoted by BERNAMA as saying that under existing laws, vehicles can be seized by the authorities for expired road tax and insurance.

Stressing that there are no shortcuts, the Transport Minister added that owners of seized luxury vehicles must settle all dues, including road tax, insurance and compounds, before their vehicles can be released.

He further elaborated that strict enforcement is necessary to instil a sense of responsibility, particularly when it comes to road safety.

 

The Transport Ministry is considering raising the compound amount

Anthony Loke

Anthony loke siew fook

Besides that, Loke revealed that his Ministry is currently reviewing the proposal to raise the compound for offences such as not having a valid road tax and insurance coverage.

However, the Transport Minister clarified that any increase to the compound amount requires amendments to existing legislation. In other words, a Bill must be tabled and passed in Parliament to amend existing laws on the matter, especially the Road Transport Act 1987.

So, what do you guys think of Loke’s statement? Do share your thoughts with us in the comments!

 

Also read: China Woman Gets Her Luxury Car Seized by JPJ for Driving with Expired Road Tax & No Driver’s License

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