Second Finance Minister Tan Sri Nor Mohamed Yakcop revealed last week that the new scheme for subsidised fuel will be revealed in a few month’s time by the Prime Minister, and will benefit low to middle-income earners, with the rich having to pay more together with all the higher tax brackets that they are already paying.
The Cabinet Committee on Inflation will be meeting tomorrow to discuss various measures on how to solve the problem of increasing fuel subsidy costs, which according to current calculations, will amount to RM45 billion this year based on an oil price of US$120 per barrel.
Indonesia is tackling the situation by providing cash relief directly to the poor – an amount of US$1.5 billion in total. On the 24th of May 2008, Indonesia raised the prices of fuel products by up to nearly 30%.
Under the cash relief scheme, US$10 will be given every month over the next 1 and a half years to 19 million families, hardly enough to compensate for the rise of the fuel itself and the domino effect it will have on other products like food.
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We should accept the reality. The crude oil price is skyrocketting. The G should change their way, spend wisely. Please hear this all the ministers. Change your lifestyle. Quote out DPM. No new Perdana anymore. Can ma.
let see what they come out with…
Asalamualaikum/Hi,
Its still to early to tell. I don’t want to blind-bash (as what I usually did last time). So we will spare the goverment (and even the oppositions) to come out with better solutions for the betterment of Malaysia. We will wait patiently.
Personally….. I think everyone should be subsidised a fixed certain amount regardless of income but beyond that…. they should pay the market price. They should calculate the average usage of fuel for cars that is low in fuel consumption and then accord that average usage for everyone… only then it will be fair…. I mean… after all….. the rich probably pays more tax… I know this comment will draw flak but it’s just how I feel…
And no…. I’m not rich..
Paul, have you been invited by RTM to be interviewed in the BLOG program? :) This is also a blog, even though not political, it has a large following.
Paul Tan says: Nope…
People will beat the system. I am telling you this now. If its not uniform, then people will try to get cheap fuel.
Poor? Middle income? Rich? The rich will find a way on how to get away with it anyway… Unless u r a makan gaji person, how cud d g implement this system? Look at low cost housing for the poor…, the psd scholarship, etc…
Buisness owners (not all though) will be able to find ways to get away for being in the `rich’ group.. Not to mention the project brokers/middle man/con-in-sulton…
In the end, its the tax paying makan gaji bloke like u and me who will be under this system… Man… paying **% tax already.. now kena hentam summore…
qouted from:
http://www.nst.com.my/Current_News/NST/Tuesday/Frontpage/2251286/Article/index_html
Edward, KL:
Amid all the furore over fuel prices Malaysians have forgotten one thing.
We pay huge excise duty for cars, far more than we can consume in fuel subsidies.
An example: The Honda Civic 1.8 costs RM113,800 here whereas it costs ~RM73,563 (unsubsidized) in Thailand. We’ll call the difference to be RM40k.
Fuel in the US costs USD3.76 per US gallon (unsubsidized). That works out to around USD1 or RM3.25 per litre. Petrol costs RM1.92 per litre here. The difference per litre = RM1.33.
So, to recoup my excise duty and other random enrich the government taxes, i have to use 30075 litres of subsidized petrol.
Let’s assume 1 litre of petrol = 10km. If i drive 600km a month (10km to work, 10km back, 30 days), i use 60 litres of petrol a month. I would have to drive for 500 months, or 41.7 years before i get my excise duty back in subsidy.
Do you think my Honda Civic can last for 41.7 years?
In summary: All malaysians should remember – the government actually profits from us, the people, via excise duty vs fuel subsidies AS IT IS. And they want to make petrol more expensive. This is ridiculous.
Give me an untaxed car. Then i will pay (gladly pay) full price for fuel.
seriously, i dont mind to pay “normal” fuel price as the market as long as:
1) take away the stupid import car tax and let it be a global price automotive market in malaysia.
If you calculate well, we are buying cars by paying 10 years subsidized fuel ahead. e.g if paying monthly petrol additional RM200/month (without subsisized price), it is only RM2,400/year, and RM24,000 for 10 years. We are buying cars by paying 10 years advance for the petrol price! Dont forget your bank interest charges when you buy a new car. All our hard earn money is spending in paying higher price to car unnucessary where we can use the money in other area like housing, etc, etc instead of all jam in this stupid car. We are the victim of the grand “proton project” and how many people does benefits from the proton projects? blue-workers are fired becaused of low sales, and because of Proton project, Toyota alone build and $160m factory in Thai, and now how many blue-workers can benefits from that, and how many site business if they intend to set up the factories in Malaysia! That’s why when Volvo negotiation fell apart, it is clearly known that blue-workers is totally not take into consideration, and only wants to benefits the own pockets by wanted to control the lousy-parts suppliers.
p.s I drove from LA->Vegas->LA only spending U$60 in Petrol and most important, paying zero tol!