A significant number of luxury car owners are deliberately evading road tax and insurance due to meager fines compared to full compliance costs.
Senior lawyer Muhammad Hasif Hasan revealed to NST that a wealthy individual candidly shared that instead of spending tens of thousands of ringgit on road tax and insurance renewals, they opt to pay a maximum fine of 3,000 RM as a cost-saving measure.
According to the lawyer, in Malaysia, some cases of tax evasion incur a minimal fine of 300 RM. In contrast, the legitimate fee for a European car can exceed 5,000 RM for road tax and over 10,000 RM for insurance annually. Even with multiple fines, the total amount is still less than fully complying with tax and insurance obligations.
This information comes to light following the Ops Luxury and Ops Luxury 2.0 campaigns conducted by the Road Transport Department of Malaysia (JPJ) in recent months. Over 150 luxury and supercars were seized for various offenses, mainly for failing to pay road tax and purchase valid insurance.
Lawyer Hasif warns that driving without insurance poses serious risks. In the event of an accident, the victim or their family may not receive compensation and would have to bear the full brunt of medical and legal expenses. “Legal costs can range from 10,000 to 40,000 RM, excluding medical costs and other court fees. Even with a favorable verdict, compensation is not guaranteed,” he emphasized.
Malaysia’s Transport Minister Anthony Loke expressed frustration over this situation. He asserted that supercar owners whose vehicles are impounded will have to settle outstanding road tax, insurance, and fines before retrieving their cars.
The Electric Vehicle Market in Thailand Isn’t as ‘Rosy’ as the Figures Suggest
The electric vehicle market in Thailand saw a boost in sales during the first four months of the year. However, the industry is now facing a set of challenges, including a price war, high maintenance costs, and an economic downturn.
The Ultimate Guide to Avoiding Costly Mistakes: Driving Your Car on Vacation
Failure to comply with the ETC lane regulations can result in a hefty fine for vehicle owners. Ensure you have the appropriate payment stickers affixed to your vehicle to avoid any unnecessary penalties.
“Bridgestone Returns to the International Petronas Sepang Circuit with SUPER GT and the GR86 Cup Malaysia Race.”
Bridgestone, the leading tire brand, showcases its prowess in high-performance tires yet again by partnering with the prestigious racing event at the Petronas Sepang International Circuit in Malaysia.
The Electric Revolution: Volkswagen’s EV Export Plan from Malaysia to Vietnam
Volkswagen Malaysia has unveiled ambitious plans to assemble hybrid and fully electric vehicles for export to Southeast Asian countries, including Vietnam.
The Ultimate Guide to Checking the February Cold Penalty List: Uncover the Secrets to Staying Informed and Avoiding Unnecessary Fines
“Unveiling two savvy strategies to unravel if your vehicle has incurred any unseen traffic violations during February. Brace yourself for a revealing journey as we demystify the unknown.”
