Annual vehicle inspection for road tax renewal

MITI has posted a statement on its new MITI blog clarifying a few points in the NAP Review, specifically the end-of-life policy and the annual inspection for road tax renewal. Hopefully this will clear some of your doubts on the exact timelines of certain things to be implemented.

Firstly, I think the most feared part of the review for all of us is the announcement of an impending vehicle end-of-life policy. There have been plenty of comments from readers on how this policy will negatively affect them and their qualify of life. I particularly like this story about the old atuk who drives a Pajero diesel to his surau.

MITI has revealed that the government has not set a Vehicle End-of-Life Policy in stone yet. It has merely announced intentions to develop one, and they (Ministry of Transport who are in charge of developing the policy) claim they will take into consideration views of all parties through consultations with consumer associations and NGOs. There is no mention which associations and NGOs these are, but I sure hope they fight for us. I hope we end up with a reasonable end of life policy with the option of extending your vehicle lifespan at a cost, similiar to the act of buying a new COE for your car in Singapore.

Though the NAP review document seemed to lead us to believe 2010 is the start point of our yearly Puspakom nightmares, MITI has clarified that a start date for the annual vehicle inspection for road tax renewal has not been fixed yet, so it will not be 1st January 2010. An effective date will be announced later.

In the statement, MITI Secretary General Tan Sri Abdul Rahman Mamat said the whole idea of the annual inspection was to ensure vehicles over 15 years of age are safe and roadworthy. He compared the inspection to the current rule where commercial vehicles have to go for an inspection every time their road tax is due for renewal. Commercial vans, pick-ups, 4X4s and etc are currently charged between RM50 to RM70 for inspections, and RM25 for reinspections.

So all in all, the NAP has given no allowance for a drop in car prices except at the higher end of the market, and that is only if the manufacturers decide to take up the carrots offered, but that looks a little unlikely at this point of time. Even the premium boys have set up shop in Thailand – did you know some CBU BMWs come from BMW’s Thailand plant in Rayong?

We will now lose the option to use good condition used parts for our cars, have to spend extra cash on annual car inspections, and finally the big bang is face the possibility of a reduced fuel subsidy once the Mykad subsidy system is implemented, together with high car prices. That wraps up what the NAP Review 2009 and Budget 2010 is all about for the common motorist.