There is a proposal on the table for the amount of road tax charged to be determined by the vehicle's fuel efficiency and performance during vehicle roadworthiness testing.

That is, the more fuel efficient a vehicle is, and the better shape it is in, the lower the quantum of road tax charged.

It is learnt that the proposal has been made by the Malaysian Automotive Institute (MAI), an agency which handles automotive matters at the International Trade and Industry Ministry.

However, the government has yet to make a decision on the matter and as such, this was not included in the National Automotive Policy (NAP) 2014-2020, which kicked off yesterday.

The proposal is also meant to act as an incentive for road users to complete the voluntary roadworthiness testing as announced in the NAP at yesterday's launch.

This is also a way for the government to allay the cost of roadworthiness testing, which could be done at approved private and public testing centres for a fee.

Roadworthiness testing for cars five years and older and scrapping is voluntary under the NAP, following earlier backlash to proposals for compulsory scrapping.

International Trade and Industry Minister Mustapa Mohamed (above) yesterday said that cost of living pressures faced by the people today also make it unsuitable to enforce compulsory scrapping.

However, the government has included voluntary testing and scrapping in the NAP as it is in line with the NAP's focus on energy efficiency and safety.