Monday, January 15, 2007

Road Tax vs Toll Rate

As of 1 Jan, the toll rate has increased in Malaysia. The margin of increment was just too huge that angered the citizens. 7 Jan, there was a anti toll-hike protest. And here are some calculations that shows how much the new rate can affect us.

The autorities explained that the reduction in road tax can help, but look carefully...

Road Tax reduction = RM50 per year.

Taking example for a person to commute from Klang to KL using the KESAS Highway. There are 3 tolls to pass for 1 way, i.e. 6 payments for return trip.

Previous rate = RM1.50 per toll
Current rate = RM2.20 per toll

Assuming one works 240 days a year...

Total increment per year:
= RM0.70 per toll x 6 tolls x 240 days
= RM1,008

Total toll paid per year:
= RM2.20 per toll x 6 tolls x 240 days
= RM3,168

Hey, for an average person who earns RM1,500 per month, nearly one month salary is gone for the increment. And his total spend on toll alone already double his monthly salary, not to say the increased fuel price!

No wonder people protested on the 7th Jan 2007!

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