Govt to decide subsidy rationalisation, incl fuel, by Q4

gst-petrol-diesel

The subsidy rationalisation programme will be decided on by the government by the fourth quarter this year, for implementation next year, second finance minister Datuk Seri Ahmad Husni Hanadzlah has said, according to a Bernama report.

A decision will also be reached on whether RON 95 petrol and diesel will be exempted from the Goods and Services Tax (GST). GST is scheduled to take effect on April 1, 2015.

Ahmad Husni told the national news agency that in the first year it takes effect, GST is estimated to provide the government with about RM2.5 billion in additional revenue, and RM8 billion in the second year.

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He also revealed that the government is looking at a certain salary level to be eligible for the subsidy, citing as an example, those with monthly earnings of RM4,000 and below alongside those who may be earning higher than that, and up to a certain level.

It was announced in Budget 2014 that a 6% GST will replace sales tax and service tax from April 1, 2015, and that transport services like buses, trains, LRT, taxis, ferries, boats and highway tolls would be exempted from GST.

RON 95 petrol and diesel are, at present, exempt from sales tax at rates of 58.62 sen a litre and 40 sen a litre respectively, Bernama quoted deputy finance minister Datuk Seri Ahmad Maslan as saying in an earlier report.

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Jonathan James Tan

While most dream of the future, Jonathan Tan dreams of the past, although he's never been there. Fantasises much too often about cruising down Treacher Road (Jalan Sultan Ismail) in a Triumph Stag that actually works, and hopes this stint here will snap him back to present reality.

 

Comments

  • coconut bomoh on Jul 11, 2014 at 10:53 am

    BN must do it properly or kasi Pakatan free victory next general election 2017…

    Well-loved. Like or Dislike: Thumb up 98 Thumb down 9
    • abuyai1 on Jul 11, 2014 at 12:27 pm

      Hidden due to lowcomment rating. Click here to see.

      Poorly-rated. Like or Dislike: Thumb up 19 Thumb down 142
      • Speak for yourself.

        Like or Dislike: Thumb up 46 Thumb down 3
        • Same L0r on Jul 11, 2014 at 2:50 pm

          Don’t be naive lar. It is so damn far from election. When election comes, they will come back give this give that. Remember the BR1M?

          Today give RM500, tomorrow take back RM15 000.

          Who care about pakatan? The most important is the government get more money, the cronies get their new Porsche, Lambo, McLaren.

          For a few to live rich, all Malaysians have to die poor.

          Well-loved. Like or Dislike: Thumb up 62 Thumb down 5
        • The Truth About GST and Oil on Jul 11, 2014 at 3:26 pm

          There is no need to even consider imposing GST on fuel. This is because we are abundant in oil and other resources.

          Infact, Malayia is one of the richest countries in the world if not for a few people stealing the money that rightfully belong to 30 million people.

          Malaysia is the most resource rich country in the world. We have everything. We have oil, gas, palm oil, besi, timah, kuprum, cobalt, getah, coconut, gold, silver and so many more others that cannot be listed.

          Look at Singapore. It has ZERO. It has nothing. And yet it is the top 5 countries of the world and their GDP per capita is the 2nd highest in the world. Infact, their GDP per capita is 5x more than Malaysia. What this literally means is that, Singaporeans earn 5x more than the average Malaysian and their purchasing power is far far far more than Malaysia.

          But how is this so? Singapore has ZERO. Malaysia is so rich. Our wealth is even richer than some European countries because Malaysia is the No 1 resource rich country in the world.

          Why our ringgit is so low globally and our GDP per capita is one of the lowest in the world is simple. The UMNO ruling members are stealing. They are stealing so much that nothing is good enough for the thieves. These pencuri not just take few million, they each want in the hundreds of millions. This is the problem. Corruption but corruption tamak.

          You see, most countries also got corrupted politicians. But they know when to stop. Malaysia, our politicians are not only corrupted but don’t know when to stop. Few million tak cukup! They want billions!

          That is the main problem. Now, country is near bankruptcy. It is like the Philippines. In the 70s Philippines was the Pearl of the Orient. Everybody wanted to migrate there because it was so prosperous. Then for 20 years, Marcos (like UMNO) raped it. Now, see where Philippines is?

          As for GST and oil, the government has to stop its lies and bullshit. Everybody in the oil industry globally confirms one thing. Malaysia has the “sweetest” crude oil in the world. What this means is this, we produce the highest quality oil in the world. The best of the best. But the rakyat don’t see this. This is exported for other people in the world to use. Then Malaysia reimports low grade and low quality oil at a very cheap price for the rakyat to use. Dirty oil.

          The question is this. Isn’t the beautiful sweet high grade quality oil Malaysia produces belong to the rakyat of Malaysia? Why sell it of at a higher price to other countries? The oil belongs to the rakyat of Malaysia. It should be given to the people of Malaysia first. Why import dirty and filthy oil and give the rakyat of Malaysia? Why are Malaysians treated like dogs and be given the bones when other people are given the nice flesh to eat?

          Another issue is subsidy. There is no such thing of subsidy. The Government of Malaysia has been lying to Malaysians the past 20 years about subsidy. You see, what you produce, you cannot subsidise. If the government does not sell our high grade oil overseas and give it to Malaysians to use, what is there to subsidise?

          This story has been going around a long time to fool the people of Malaysia, especially, the kampung people that petrol need to be subsidised. We don’t need to subsidise any petrol or fuel because Malaysia produces ample oil not only for its rakyat but also for export. So, if you produce your own oil, what is there to subsidise?

          If you grow vegetables in your garden to eat, you cannot go around telling people that your vegetables are subsidised. You are growing it. You are producing it. You don’t have to buy it at all from an external source. The same with oil. We produce it. We should be using it first. This is how the Sultan of Brunei thinks. That is why he gives his rakyat very cheap fuel. Then the balance, he exports it at global prices. For him, rakyat comes first. he gives the rakyat clean and cheap oil because he cares.

          Our government, terbalik. Rakyat comes last. And our oil resources are far more than Brunei. Few years ago, in the global media, Petronas struck the largest oil reserve and land in the world. Global media confirmed it was the largest oil reserve in the entire world. Then the next day, our government covered it up as mere speculation. So, in actual fact, Malaysia’s petrol company Petronas has unlimited reserves of oil for the next 50 yrs. Can we Malaysians please have the priority to get this fuel first for the rakyat cheaply and without GST?

          Why charge GST on what rightfully belongs to the 30 millions Malaysians?

          Well-loved. Like or Dislike: Thumb up 143 Thumb down 7
  • useless malaysian on Jul 11, 2014 at 11:05 am

    Useless Malaysian needs subsidy in everything. Even going to bed also needs subsidy. Go to hell la Malaysian

    Like or Dislike: Thumb up 21 Thumb down 97
    • You really described yourself very well. Bravo.

      Well-loved. Like or Dislike: Thumb up 63 Thumb down 5
    • abuya and kzm where are you? on Jul 11, 2014 at 5:01 pm

      Abuya, when you gonna come and say GST adalah sistem Yahudi dan tidak sesual untuk Malaysia?

      kzm, not coming to say GST is budaya barat dan origin from Yahudi?

      Like or Dislike: Thumb up 4 Thumb down 4
  • carazy on Jul 11, 2014 at 11:10 am

    I once heard from our menteris said that GST will put down goods/products price. If that the case, why not GSTing the fuel, so rakyat will get cheaper oil price..

    Like or Dislike: Thumb up 38 Thumb down 2
    • fast5 on Jul 11, 2014 at 1:20 pm

      Not possible later Tun DrM and families marah… got billions still not enough they need to be trillionaier.

      Like or Dislike: Thumb up 26 Thumb down 7
  • Maseratits on Jul 11, 2014 at 11:39 am

    Are you kidding me?

    Like or Dislike: Thumb up 5 Thumb down 3
  • Mozilla Chrome on Jul 11, 2014 at 11:39 am

    There’s no such thing as subsidy. Dear BN, please stop manipulating things.

    Like or Dislike: Thumb up 34 Thumb down 4
  • honest on Jul 11, 2014 at 11:41 am

    Those who are rich pay more tax than ordinary ppl
    Those who are less fortunate no need to pay tax at all
    Therefore it is already fair.
    By GST, those who spent more will pay more tax
    Two person who have similar salary does not mean they have the same net income b’coz they may have different comitment
    If they rationalise this subsidy on fuel, I’m afraid current government will fall in the next election

    Like or Dislike: Thumb up 32 Thumb down 2
    • RejimKejamGanas on Jul 11, 2014 at 1:23 pm

      Furthermore, what about sole earners supporting their family or single parents with a few kids? Again government discriminating against single income households. Just because their pay is higher does not mean that their commitments and dependents are also comparable. Expect such families to suffer greatly under this irrational scheme.

      Like or Dislike: Thumb up 27 Thumb down 2
    • Desperate Citizen on Jul 11, 2014 at 11:27 pm

      Even worse, for those who commutes a lot daily just to get to work.

      Like or Dislike: Thumb up 2 Thumb down 0
  • ThePolygon on Jul 11, 2014 at 11:41 am

    Wow… based on income level… so basically my non-working spouse will have to fill in for me. Problem solved.

    Like or Dislike: Thumb up 35 Thumb down 2
  • Obviously (Member) on Jul 11, 2014 at 11:42 am

    I wonder how they will implement it for people without fixed salary like those who go offshore for a variable amount of days and gets paid for the number of days as well as a basic salary. What if it dips above and below the 4000RM mark every month? Take an average of 6 months?

    Like or Dislike: Thumb up 15 Thumb down 0
  • bleh2.. then cars are tax free for salary above 4k la.. baru adil.. bleh ke gomen oiiii

    Like or Dislike: Thumb up 20 Thumb down 2
  • Burong on Jul 11, 2014 at 11:49 am

    Waive Fuel subsidy, waive car import tax. Let the user enjoy low car price and high fuel price(RM2.85 for RON97). Let those who drive pay, and those who doesn’t save.

    Like to vote. Dislike to continue current setting.

    Well-loved. Like or Dislike: Thumb up 104 Thumb down 2
  • KillBox1Alpha on Jul 11, 2014 at 11:53 am

    Good move…since everyone else will be paying unsubsidized fuel price..time to abolish the road tax…

    Like or Dislike: Thumb up 15 Thumb down 2
    • abuyai1 on Jul 11, 2014 at 12:31 pm

      Cannot abolish. High road tax means high cc. High cc usually is orang kayas car. Orang biasa and orang miskin car use below 1.6cc. Plus lower cc need less fuel compare higher cc. Less fuel means less subsidy to give.

      Like or Dislike: Thumb up 7 Thumb down 25
      • _xXx_ on Jul 11, 2014 at 3:00 pm

        RM90/yr road tax really helps me a lot. BTW, my car is only a small little humble 1.6L, RM210k sebjk BMW F30.

        Like or Dislike: Thumb up 14 Thumb down 0
      • truman6 on Jul 11, 2014 at 3:27 pm

        school bus also high cc..so they are very rich lar..

        Like or Dislike: Thumb up 9 Thumb down 0
  • Naik harga say naik harga la. What rationalisation la, pengurangan subsidi la.
    Also, politik wang la. wastages la…. when it’s downright CORRUPTION.
    NEP la, NAP la…when it’s PROTECTIONISM.

    Like or Dislike: Thumb up 28 Thumb down 6
  • pondan on Jul 11, 2014 at 12:35 pm

    Now BN gov to decide in Q4 to kill Malaysian or not

    Like or Dislike: Thumb up 19 Thumb down 2
  • kemosabe on Jul 11, 2014 at 1:00 pm

    To raise price is easy. To bring it down like abolishing the NAP is difficult. Has the government ever reduce prices of anything?
    The collection of GST should go back to the people via salaries.
    In Singapore, the government actually subsidises salary increments to match costs of living.
    Price increment is inevitable, however if salary increments remains flat, then people will suffer.
    Elected governments are supposed to protect and provide for the people, not exploit them for gains of a certain group.

    Like or Dislike: Thumb up 26 Thumb down 2
  • Idiotic thinking….R we suppose to carry our pay slips ha.

    Like or Dislike: Thumb up 12 Thumb down 4
  • when it comes to subsidies for normal rakyat, raised tolls, new taxes etc the gvt find reasons easily to implement. But when it comes to ap, car taxes etc the find all sorts reasons to keep in place.

    Like or Dislike: Thumb up 15 Thumb down 2
  • tongkatraceispathetic on Jul 11, 2014 at 2:06 pm

    what do you expect when tongkat race with peanut brain is rulling the country?…of coz they will come out with stupid decision

    Like or Dislike: Thumb up 12 Thumb down 7
  • Budget 2012, Budget 2013, Budget 2014, Budget 2015 what year will the budget-ing stop?

    Like or Dislike: Thumb up 4 Thumb down 4
  • Probably we need to carry our pay slip, and let those bangla and myanmar workers at the counter decide whether you are eligible or not. What a joke

    Like or Dislike: Thumb up 6 Thumb down 1
  • W204 C63 AMG on Jul 11, 2014 at 2:28 pm

    Then waive all duties and taxes on cars for those that are not qualified for subsidies!

    Like or Dislike: Thumb up 3 Thumb down 1
  • Ala…..ni semua reverse psycology……gov delay all this to make rakyat finally realise the best solution is float the oil price based on current price….they first want to introduce waive the subsidy(remember?) but during that time majority rakyat make hoo haa and against it…so this is the time the right time they want rakyat itself suggest that idea again…remember how media keep rolling the stories about smuggling these past 2-3 weeks?….

    Like or Dislike: Thumb up 10 Thumb down 0
  • Joker on Jul 11, 2014 at 3:07 pm

    I can’t wait for them to implement GST on subsidised item..
    It will sounds stupid enough to make the world goes square…

    Like or Dislike: Thumb up 1 Thumb down 1
  • ThePolygon on Jul 11, 2014 at 3:27 pm

    Wait a minute… all this rationalization talk started because of the smuggling of petrol and diesel across border. And now we have to be burned for this? And… doing it this way kinda promotes more smuggling as they probably don’t declare income via smuggling so they fall under RM 4000 ke bawah setiap bulan category. Ohohohoh… now the poor can even smuggle for the rich to rationalize their income… end of the day government asking themselves what went wrong… hmm…

    Like or Dislike: Thumb up 8 Thumb down 0
  • Polo Saga on Jul 11, 2014 at 3:54 pm

    Must change government!

    Like or Dislike: Thumb up 11 Thumb down 2
  • They talk and talk and talk about how much the government spends on subsidies but they dont give a shit when it comes to how much we pay extra for AP that goes to their cronies pocket. gutless prime minister we have!

    Like or Dislike: Thumb up 8 Thumb down 1
  • JoeYoung on Jul 11, 2014 at 4:42 pm

    If I am working in Singapore and staying in JB how? Not filling income tax in Malaysia, who knows what is my income? If I am retrenched in Singapore, also who would know. If housewife how?

    Must be some UITM Double PHd holder that come up with this idea.

    Like or Dislike: Thumb up 9 Thumb down 13
  • How can they actually implement it base on salary?
    By checking the registration of the car owners?
    What if i put my grandma name for the car, meaning that if I earn 40k a month, i still get to enjoy the so call “subsidy” by them?
    All bullshit!! Think before making a statement menterissss! ops! maybe just MENTERI only.

    Like or Dislike: Thumb up 3 Thumb down 1
  • presna (Member) on Jul 12, 2014 at 12:20 am

    kinda confused with this statement
    “RON 95 petrol and diesel are, at present, exempt from sales tax at rates of 58.62 sen a litre and 40 sen a litre respectively, Bernama quoted deputy finance minister Datuk Seri Ahmad Maslan as saying in an earlier report.”
    so is the 58.62 and 40 sen the amount of tax that will apply if GST is applicable on fuel?
    the numbers don’t add up…..
    p.s. apologies if i misread that figure there in the article….it just seems weird…

    Like or Dislike: Thumb up 1 Thumb down 0
  • FLOAT HARGA MINYAK on Jul 12, 2014 at 12:49 am

    Just FLOAT the price to reflect world prices.

    No more rubbish subsidy when there is actually non to begin with.

    End of story.

    Like or Dislike: Thumb up 7 Thumb down 1
  • Comolot on Jul 12, 2014 at 11:40 am

    There’s no such thing as “rationalization”

    It’s cutting the subsidy – simpy say it as “Subsidy cutting programme” – period.

    Let’s migrate and dont ever call the professional to return & work in malaysia

    Like or Dislike: Thumb up 2 Thumb down 0
  • Samad Jain on Jul 12, 2014 at 11:55 am

    another very sh@t idea from the BN govt!

    Like or Dislike: Thumb up 3 Thumb down 2
  • bisakeris (Member) on Jul 12, 2014 at 1:15 pm

    just take out oil susidies lah..

    Like or Dislike: Thumb up 6 Thumb down 0
  • bisakeris (Member) on Jul 12, 2014 at 1:16 pm

    no need oil subsidies..

    Like or Dislike: Thumb up 5 Thumb down 0
  • old dog on Jul 12, 2014 at 4:08 pm

    Can someone name a policy that G roll out that is benefiting the rakyat?…

    I cant…

    Like or Dislike: Thumb up 3 Thumb down 1
  • Subsidized Solution! on Jul 12, 2014 at 4:11 pm

    Just implement a system at the border by recognizing mykad/license/credit card to avoid selling subsidized fuel to the foreigner. Limit pump for rm200 or less fuel per hour or two.

    I am not against floating the fuel price, but it is not the time. We are already facing alot of price hikes, and recent interest rate hike!

    The domino effect of fuel subsidization removal is too hard to bear for ordinary ppl..

    Or they can introduce two diesel type, one is euro 2 for commercial vehicle (subsidized) and another one is non subsidized euro5 diesel. So although diesel euro5 price is high but can gain higher mileage, so in the long run, it is still not much different from pumping subsidized fuel.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Retro School (Member) on Jul 12, 2014 at 11:25 pm

    Are we creating a Caste system in the country?

    Like or Dislike: Thumb up 1 Thumb down 1
    • Unintended on Jul 17, 2014 at 1:42 am

      Its hard to ignore but the system has always been in practice in our country. Obvious signs would be the federal and state titles that replicates the upper echelon class in the caste system (brahmans), then the bumiputeras class (kshatriyas), the non-bumi & expats (vaishyas) and then the laborers from poorer nations (shundras), until finally those below poverty lines (untouchables).

      The situation now is more like a sizeable populous tug-of-war between liberalism, conservatism and extremism. And within those platforms are yet again sizeable populous who wants dominant-parties, non-partisan and multi-party. Basically it’s the mirror of our multi-cultural background, a multi-political-ideology mentality. It’s no coincidence why pkr won in liberal & extremist states but lost in conservative states.

      So for the liberals to win, their advocates will need to go and develop conservative states out of their own finances & efforts as an investment for the future.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Sam Loo (ori) on Jul 14, 2014 at 8:35 am

    What subsidy are they talking about?

    Car buyers pay for their future fuel when the car purchase is made, when excise duties & taxes are imposed.

    Govt (and many of their servants) gets the money upfront first

    Like or Dislike: Thumb up 2 Thumb down 0
 

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