Loke: Luxury car owners must renew road tax, insurance to reclaim seized vehicles
He said the law allows the Road Transport Department (RTD) to impound any vehicle without a valid road tax and insurance.
The vehicle owners must first settle all outstanding dues before they can reclaim their cars.
"Just because they pay a RM300 compound does not mean they can skip (paying the) road tax.
"The vehicle will remain impounded until they settle the road tax and have valid insurance. Only then can it be released," he said after launching Foodpanda Malaysia's rider safety programme today.
The minister was responding to reports that luxury car owners were exploiting low fines to avoid renewing road tax and insurance.
Loke said that although the RM300 compound is the maximum allowed under the Road Transport Act 1987, the ministry is open to reviewing the law and increasing the penalties, especially for repeat or high-risk offenders.
"There are suggestions that in cases like this, we impose a higher fine.
"That is something we need to look at in the Act, because under the current law, we can only compound them up to RM300.
"But despite the limit, it does not remove the requirement to have valid documents before the vehicle is released," he said.
On Monday, it was reported that exotic cars such as Ferraris and Lamborghinis, owned by celebrities and business tycoons, were among 1,000 luxury vehicles identified by the RTD that have not had their road tax and insurance renewed for an extended period.
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