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Sunday December 31, 2006

Road tax lowered on private vehicles from Jan 1

BY SIMON KHOO

PEKAN: Vehicle owners will have something to celebrate this New Year - lower road tax.

Deputy Prime Minister Datuk Seri Najib Tun Razak announced yesterday that road tax for all privately-owned cars would be reduced by between 4% and 33%, effective tomorrow.

SACRIFICIAL COW: Najib accompanied by his wife Datin Seri Rosmah Mansor receiving a cow from DiGi Strategy and Corporate Affairs director Tunku Alizakri Raja Muhammad Alias (next to Najib) yesterday.
The reduction also applies to seven other categories of vehicles, depending on engine capacity. They are company-owned cars, private- or company-owned vehicles other than cars, motorcycles, taxis, hire cars, buses and commercial goods vehicles. (refer to table)

“The Government will continue to find ways and means to lessen the financial burden of the people. We have decided that reducing road taxes and excise duties will benefit a wide section of society,” said Najib.

“The move will result in the Government losing some RM250mil in revenue yearly,” he told reporters after handing out bicycles and cash to students who scored well in the UPSR in the Pekan constituency at SM Seri Pekan yesterday.

Najib said excise duties for all passenger vehicles exceeding 3,000cc would also be reduced from 125% to 105%.

As for motorcycles with an engine capacity exceeding 200cc and above, the new rate would be fixed at 30%.

Najib said the public should not be unduly worried over speculation of an increase in petrol prices next year.

“As of now, we have not decided to raise the price of petrol,” he said, adding that the Government was willing to forgo a substantial amount in revenue to ensure benefit for the people.

To a question whether the Government would look into the high premiums imposed by insurance firms, Najib said that was a very technical subject and required a thorough study.

Earlier, Najib inspected a total of 299 cows to be slaughtered for Hari Raya Haji. Of the total, 100 heads were sponsored by DiGi Telecommunications Sdn Bhd.

Related Story:
Public wants to see lower petrol prices instead

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