Taxis: Reduce road tax, but up diesel tax?


A friend who is a taxi driver told me that whilst the Budget announced a reduction in the road tax for diesel cars – at the same time it also raised the diesel tax.

Doed this mean that it helps those taxi drivers who park long hours at say RWS, but tax those who drive high mileage on the road more?
First they removed the minimum daily mileage, which may hint arguably, less policy  support for taxi drivers.

But easier for Uber/Grab and car rentals to feed on the drivers.

The taxi diesel vehicle’s tax is reduced by $2.33 per day,  but the use of diesel is up by $0.10 per liter.

At the end of the day – taxi drivers end up paying more.

Where is the logic for such Budget measures – reduce one thing, raise another thing – bottom line – pay more!

Can the Government tell us how much more money it will collect from this Budget change in transportation tax policy?

Leong Sze Hian


About the Author

Leong Sze Hian has served as president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), invited to speak more than 200 times in over 30 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of Indonesia and Brunei. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.