Transport Minister Datuk Seri Liow Tiong Lai said recently that the rakyat will soon be able to pay lower road tax.
This is due to the insurance detarifficattion of motor vehicles in the country.
Under the initiative, some segments of the rakyat are set to pay lower insurance premiums for their cars as well as lower road tax.
Thats right, the road tax will be cheaper
What is insurance the detariffication?
Let us take a look.

What is insurance detariffication?
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All this while, the rakyat pay the same rate for the road tax.
As an example, all Proton Persona car owners pay the same amount for road tax.
However, not all drivers are the same.
Driver A is a reckless driver and is always involved in accidents.
Driver B meanwhile is a careful driver and is not involved with a single road accident.
Under the detariffication, driver A will now have to pay higher road tax and higher insurance premiums.
This is because driver A is a careless driver and he or she should pay more.
Driver B meanwhile is a careful driver and he deserves to pay less.
This is what insurance detariffication is all about.

The detariffication also take a look at vehicle conditions
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The detariffication also take into consideration vehicle conditions, mileage and traffic offenses’ demerits.
What it means is that if the car is old and a danger on the road, the owner will have to pay higher road tax and insurance premium.
The same applies to a car which has high mileage and high demerit points. Car owners who drive often will also pay higher road tax.
So it is better for the driver to sell the car and get a new car.
This activity will be good for the economy and help the country’s automotive sector.

Drivers will be more disciplined
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With detariffication, Malaysian drivers will be more disciplined because Malaysian drivers are poor drivers.
They don’t obey the traffic rules and are always involved in accidents.
This is a waste of time and waste or resources and affects our productivity.
Its time for our drivers to be disciplined so that the rakyat can feel safe and be able to work to provide for their families.

Why is this initiative being taken?
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This initiative is taken because Malaysia;s accident rates is among the highest in the world.
The number of deaths skyrocket costing billions in ringgit in insurance premiums.
The country’s productivity is also affected whenever a Malaysian worker dies.
To address this matter, insurance companies introduced the detariffication.
This will hopefully reduce the number of accidents as well as insurance premiums paid to accident victims.

With less road fatalities, the country will be more productive
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With detariffication, hopefully there will be less and less road accidents.
When there are less accidents, the rakyat can work and contribute more to the economy.
When they work, there will be more man hours and this will contribute positively to the economy.
When the rakyat work, the country’s gross domestic product will grow and our economy will thrive.
When the economy is good, it will ensure a good life for the rakyat.

Money saved can be spent on other things
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With detariffication, the rakyat can save the money paid for the road tax and insurance premiums.
The money can then be used for other things.
This include food, clothes and spending time with family members.
All this activites help stimulate the national economy and make the country stronger.
Similarly, with less cars on the road and less accidents, the government can save on road maintenance and repair costs.
The government can then use the money for other development for the rakyat such as building schools and improving roads to make it safer.

System already used in other countries
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Detariffication is not new as it is already implemented in countries such as Singapore, Korea and Japan.
In those countries, car owners have different road tax rates depending on usage.
In Singapore, car drivers which enter the city between Monday and Friday will pay higher road tax.
Car drivers which go into the city on Saturdays and Sundays will pay less road tax.
This is a good initiative to discipline drivers, reduce accidents and improve productivity of the rakyat.
When the rakyat’s productivity increase, the country’s economy will be stronger.

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