New motor vehicle licence, commonly known as road tax or LKM, rates for e hailing service vehicles take effect today, 30 January. The change introduces more flexible renewal periods, allowing eligible vehicles to renew road tax for shorter durations instead of being limited to six or 12 months.

The update follows the rollout of flexible LKM renewal and is intended to address renewal challenges faced by e hailing drivers when their vehicle permits are nearing expiry.

Why The Road Tax Renewal System Has Been Updated

Previously, e hailing vehicles could only renew LKM for six or 12 months, based on the Road Transport Department chart. This created problems for drivers whose e hailing vehicle permit, known as the eVP, had less than six months of validity remaining.

In such cases, drivers were often unable to renew road tax even though their vehicles were still legally registered and operating. This increased the risk of service disruption and loss of income.

The Transport Ministry said the revised calculation method is designed to better match road tax validity with the remaining validity of the eVP, vehicle inspection report from the Motor Vehicle Inspection Centre, and insurance coverage.

Shorter LKM Renewal Periods Now Available

Under the new rules, legally registered e hailing service vehicles may renew their LKM for periods shorter than six or 12 months. The minimum renewal period is one month, while the maximum remains 12 months.

Drivers may renew road tax for between one and five months, provided the selected period does not exceed the shortest remaining validity of the eVP, vehicle inspection report, or insurance policy. The cumulative fee for these shorter renewals will not exceed the existing six month LKM rate.

The Transport Ministry confirmed that LKM rates for six and 12 month periods remain unchanged. The flexible renewal option applies only while the vehicle continues to be registered as an e hailing vehicle.

Updated LKM Rates In Peninsular Malaysia Under Usage Code AB

For Peninsular Malaysia under usage code AB, vehicles with engine capacity of 1,000cc and below continue to be charged RM20 for 12 months and RM10 for six months. Under the new structure, the introduced rates are RM5 for three months, RM3.40 for two months, and RM2.70 for one month.

For vehicles with engine capacity between 1,404cc and 1,600cc, the existing rates remain RM90 for 12 months and RM45 for six months. The newly introduced rates are RM22.50 for three months, RM15 for two months, and RM8.50 for one month.

Revised Rates Under Usage Code AD In Peninsular Malaysia

Under usage code AD in Peninsular Malaysia, vehicles with engine capacity of 1,000cc and below continue to pay RM20 for 12 months and RM10 for six months. The new shorter period rates are RM5 for three months, RM3.40 for two months, and RM2.70 for one month.

For vehicles with engine capacity between 1,404cc and 1,600cc, the existing rates remain RM120 for 12 months and RM60 for six months. Newly introduced rates are RM30 for three months, RM20 for two months, and RM11 for one month.

Lower Regional Rates Apply In Sabah And Sarawak

The same flexible renewal structure applies in Sabah and Sarawak, with lower LKM rates compared to Peninsular Malaysia.

Under usage code AB, vehicles with engine capacity between 1,404cc and 1,600cc were previously charged RM72 for 12 months and RM36 for six months. The introduced rates are RM18 for three months, RM12 for two months, and RM7 for one month.

Under usage code AD, the existing rates are RM60 for 12 months and RM30 for six months. The new rates are RM15 for three months, RM10 for two months, and RM6 for one month.

Tax Free Areas Continue To Offer Reduced Rates

Tax free areas such as Langkawi and Labuan also follow the revised structure, with lower fees compared to Peninsular Malaysia.

In Langkawi, vehicles with engine capacity between 1,404cc and 1,600cc under usage code AB are charged RM45 for 12 months and RM22.50 for six months. The newly introduced rates are RM11.25 for three months, RM7.50 for two months, and RM4.80 for one month.

In Labuan, vehicles in the same category under usage code AB pay RM36 for 12 months and RM18 for six months. The new shorter period rates are RM9 for three months, RM6 for two months, and RM4 for one month.

How Flexible Road Tax Renewals Affect E Hailing Drivers’ Costs And Compliance

The introduction of shorter LKM renewal periods reduces the risk of e hailing drivers being unable to renew road tax when their vehicle permit or insurance is close to expiry. This helps prevent service interruptions that can directly affect income, particularly for drivers who rely on e hailing as a regular source of earnings.

From a cash flow perspective, the revised system allows drivers to better align road tax payments with the actual period they are legally permitted to operate. While the overall six or 12 month fees remain unchanged, drivers are no longer required to pay upfront for months they cannot fully use.

The change also supports stronger regulatory compliance. By making it easier to keep road tax valid even when permit validity is short, drivers face a lower risk of operating with expired LKM, which can lead to fines, enforcement action, or suspension from e hailing platforms. Overall, the update improves alignment between regulatory requirements and real world operating conditions, without increasing existing road tax rates.

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