Fuel subsidy plan to be announced in a few weeks

gst-petrol-diesel

Although RON 95 petrol, diesel and LPG have officially been declared free of Goods and Services Tax (GST), Prime Minister Datuk Seri Najib Tun Razak announced last Friday in his Budget 2015 speech that a mechanism or plan for the rationalisation of subsidies for these fuels would be unveiled “at the soonest time.”

Well, this is certainly sooner than we expected, for according to Bernama, second finance minister Datuk Seri Ahmad Husni Mohamad Hanadzlah has said that the plan is ready, and the PM will announce it in the next few weeks.

“The (subsidy rationalisation for) commercial vehicles will be implemented first and that for passenger cars will come later,” he told reporters after the Budget was tabled on Friday.

Petrol_Subsidy_Sept_ 001

Domestic Trade and Consumer Affairs ministry (KPDNKK) secretary-general Datuk Seri Alias Ahmad said before that diesel subsidy rationalisation was expected to be implemented in January 2016, while that for petrol could happen two to three months after.

The new mechanism is said to ensure a more “targeted” subsidy – in other words, ensuring subsidised fuel is sold only to those deemed eligible.

Whether it’ll just be a two-tier system (where you either buy subsidised or unsubsidised fuel) or if the levels of subsidy vary according to your income (higher income, less subsidy) remains to be seen. It’ll also be interesting to see how one is required to show proof of income at the pumps… or is there another way around it?

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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

  • proof of income..no need…all proton cars eligible for subsidised fuel

    Like or Dislike: Thumb up 31 Thumb down 3
    • jonker on Oct 14, 2014 at 10:39 am

      Luckily I drive one.

      Like or Dislike: Thumb up 9 Thumb down 5
      • Same L0rrr on Oct 14, 2014 at 10:59 am

        Price hike is coming again?? I gonna even busier with our Prius booking then… Now I almost sell off 1 Prius/Prius C everyday…

        Like or Dislike: Thumb up 3 Thumb down 20
        • Bad Boy on Oct 14, 2014 at 1:26 pm

          This is bad. Why are you taking a picture with your phone while pumping petrol? It’s a very bad example for kids you know?

          Like or Dislike: Thumb up 13 Thumb down 2
    • Tricky Rich on Oct 14, 2014 at 12:22 pm

      Very easy to abuse it:

      1. Pump petrol for Proton, siphon it again at home for my Mercedes.

      2. Collect petrol cards from poor rural folks, pump it to my Mercedes.

      Like or Dislike: Thumb up 11 Thumb down 0
      • Same L0rrr on Oct 14, 2014 at 1:47 pm

        How the system works? Doesn’t matter. How the system can be abused? Doesn’t matter.

        As long as there is new system launching, there is new chance to dig money from tax payers. RM1mil system will become RM1bil project in government.

        Who pay the bill?

        Therefore it is not subsidy, not system, not user abuse, but only BUSINESS.

        Like or Dislike: Thumb up 17 Thumb down 1
        • Hellhole on Oct 16, 2014 at 3:15 am

          Easier solution. Raise price to RM4 per liter = Those who cannot afford can sell car and take bus = Those who can afford enjoy smoother traffic and less fuel consumption due to smoother traffic = More people take bus more profitable it is for bus company who can then increase frequency of bus service. Since less cars on the road, bus arrives quicker = Money from petrol goes to bus subsidy so more buses

          Like or Dislike: Thumb up 0 Thumb down 2
  • Operation-Manager (Member) on Oct 14, 2014 at 10:04 am

    Have been told “READY” since years back?

    If you are ready please announce subsidy rationalisation immediate on both private & passenger vehicle. If the formula created work 100% then why still holding back?

    Still the same question, are you ready?

    Like or Dislike: Thumb up 13 Thumb down 2
    • My Kangkung on Oct 14, 2014 at 1:42 pm

      This time they are READY
      Ready to request budget, spend money.
      System success or not, it’s another story.
      Most important, take care my BUDDY!

      If System fail?
      Then request budget again, spend money again.
      System improve or not, it’s another story.

      Keep repeating system fail.
      Keep repeating same lobang,
      Keep repeating fill my pocket.

      Haha, infinite loop …..

      Like or Dislike: Thumb up 18 Thumb down 0
  • Ok. I am waiting for joke from these idiot

    Like or Dislike: Thumb up 26 Thumb down 1
  • I’d rather pay the extra 0.47sen/liter and on the other hand the government should dispose all other taxes and excise duty for the automobile industry. Paying less for vehicles installment every months can bare the extra 0.47sen/liter on the petrol. Win win situation. They should also stop complaining on the burden and debts they have to bare for the subsidies.

    Well-loved. Like or Dislike: Thumb up 71 Thumb down 0
    • Yours Faithfully (Member) on Oct 14, 2014 at 10:34 am

      Knowing our gomen…They will make you pay the 47 sen and still charge you for the taxes and excise duties. Lets wait and see.

      With all honesty, I hope they do it your way.

      Like or Dislike: Thumb up 31 Thumb down 0
    • Maserati(Official) on Oct 14, 2014 at 11:00 am

      and then what? all consumer goods would increase, 2nd hand car market will be impacted greatly, the poor will suffer as they dont have a car to begin with to enjoy this while have to pay for higher fuel floating prices and higher consumer goods

      then when they go robbing and stealing to make ends meet, everyone complains this and that, crime increase blablabla…

      the world doesnt revolve around you onlu, there are many more poor people out there who don’t earn half of the urbanites income

      whats worse is the disposal of Korean cars which are known to guzzle fuel like Cookie monster guzzling on his cookies, these poor know nothing owners cant sell them on second hand market and have to suffer because of the higher fuel prices, which in turns affects their purchasing power, sooner or later these poor owners will rob and steal from good citizens like me and others here..

      so think before you suggest any drastic measures

      Like or Dislike: Thumb up 8 Thumb down 21
      • RejimKejamGanas on Oct 14, 2014 at 5:13 pm

        The govt will remove fuel subsidies one way or the other. Unless you have been living in a rock all this while, you should know this reality. When they do, what solutions are you then going to propose?

        Like or Dislike: Thumb up 6 Thumb down 0
        • Maserati(Official) on Oct 14, 2014 at 9:32 pm

          get a better paying job, work more jobs, spend less, spend on necessities and not wants …

          simple.

          the government is doing its best to keep the rakyat living happily, thats why u must always trust the government and throw your support behind them, not going demo sini and sana, like budak kecil.

          because of the pembangkang yg sentiasa buat kacau, many investments went elsewhere resulting in lesser money flowing in to Malaysia, pembangkang is never ikhlas, always ada agenda sendiri, udang sebalik batu… the stronger the gov is, the more prosperous and muhhibah the rakyat is …

          Like or Dislike: Thumb up 4 Thumb down 15
          • Bslee on Oct 16, 2014 at 7:21 am

            Stupid statement . If no pembangkang I believe more corruption will happen.
            Direct investment depends on the country’s outlook not opposition.

            Like or Dislike: Thumb up 1 Thumb down 0
    • Anti-Establishment on Oct 14, 2014 at 11:18 am

      If you’re buying a City/Vios/Fiesta, on average you only paying 20% in excise tax – based on price difference between Langkawi & the mainland.

      Ask yourself this, how much of it is taxes and how much of it is profit margin. No wonder UMW-Toyota can offer yearly bonuses of 3 months easily.

      Like or Dislike: Thumb up 13 Thumb down 0
      • alldisc on Oct 14, 2014 at 7:59 pm

        i had some experience working in the circle of UMW.

        1. for union staff, fixed minimum of 2 months bonus.
        2. for non-union staff aka management level (exec n above) – up to 11 months bonus, depending on performance.

        meaning a manager earning 5k a month, bonus is 55k.

        imho, the high profit margin is not what umw wants but rather they were pushed to do so.

        the same way naza was pushed to sell Kia Spectra at 84K 10 years ago. cost price (CIM) is less than 10K, CBU from korea. the reason naza group is so rich now, not interested in automotive anymore but now focusing in realty properties & consutruction. make more money there.

        looking at the prices of vios in neighbouring countries, umw can easily sell vios at a competitive pricee but that will have high impact on proton and perodua respectively. the government will never allow that to happen. thus, the lowest toyota can sell vios was 70K several years ago – the vios J MT, without airbag but has ABS.

        do we really think prius C is cheap at 97K? actually can be cheaper than vios, but that will stab UMW itself badly.

        5 yrs ago, a Camry 2.4 selling at abt 160k OTR new. the price before tax – 89K. perdana V6 without tax back then 73K.

        Like or Dislike: Thumb up 4 Thumb down 0
    • My Kangkung on Oct 14, 2014 at 1:46 pm

      Transparent. No subsidy
      remove automotive tax.
      Remove all import tax.
      Implement GST & fair income tax.

      Then take action all Malaysia Audit report.
      We need a Clean environment.

      Like or Dislike: Thumb up 13 Thumb down 0
    • paparadzi (Member) on Oct 15, 2014 at 12:23 am

      This is logical. This makes sense. This is fair.

      And since this is Malaysia, it won’t happen.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Another way or reasons to suck our money.

    Like or Dislike: Thumb up 5 Thumb down 0
  • Yours Faithfully (Member) on Oct 14, 2014 at 10:35 am

    Subsidies should be for ALL MALAYSIAN irrespective of race and income.

    Like or Dislike: Thumb up 9 Thumb down 4
  • Blaze (Member) on Oct 14, 2014 at 10:41 am

    Another elaborate and complicated scheme. It will be interesting how fool proof it is not to be abuse. “Higher income” rakyat pay higer taxes, and yet you got almost nothing in return.. Want a better car? Pay higher taxed car. Want a better road? Pay toll, want a safer place to live? Pay monthly security guards, want a better medical support? Buy insurance, want a better education for your kids? Pay a private school. Its like a retribution for working hard and earn a decent job. Well, Unless you run a dodgy buisness and can get away of not paying taxes, thats another story…….

    Like or Dislike: Thumb up 23 Thumb down 0
    • RejimKejamGanas on Oct 14, 2014 at 5:23 pm

      Malaysia is no longer the place that rewards hard working people that seek to improve their livelihood and provide a better future for their family. It seems like Malaysians want to stay poor or be satisfied with living a low quality of life. Only the complacent and the mediocre will continue to support policies that deprive them of opportunities and a means to reward the deserving.

      Like or Dislike: Thumb up 5 Thumb down 0
  • areos on Oct 14, 2014 at 10:45 am

    Think positive dude…it will flourish the secondary car market for cars 2.0 and above – prices will relatively come down as it is understood govt will do away petrol subsidy for cars in that category ..(dont imagine) prices of new car import will go down too.. as exchange rate still weak and its hard for the govt to reduce import duty..thats why prices of cars in Spore are high eventhough Sing$ stable n there’s no proton factory there..

    Like or Dislike: Thumb up 2 Thumb down 3
    • Maserati(Official) on Oct 14, 2014 at 11:01 am

      it’s not only about cars, but consumer goods

      the poor will suffer much much more

      Like or Dislike: Thumb up 6 Thumb down 0
    • Idiot compared with Singapore.. How big Singapore Vs Malaysia? Car price in Singapore due to their Govt encourage Singaporean to use public transport instead of bought or owning a car.

      Exchange Rate again, Since when International Trade using Yen? Kia, Hyundai, BMW, Mercedes Benz, Peugeot, Chevy & etc use Yen also ka? Don’t said Toyota after this coz most Toyota part made in Thailand…

      Like or Dislike: Thumb up 7 Thumb down 2
  • greedy on Oct 14, 2014 at 10:50 am

    Burden and debts all are due to corupted umno bn government because they are the one that spend tax payer money lavishly never think the rakyat expenditure too high for a living.

    Like or Dislike: Thumb up 23 Thumb down 2
  • Obviously (Member) on Oct 14, 2014 at 11:53 am

    How many times must they announce that the fuel subsidy rationalization will be announced in the near future?

    Like or Dislike: Thumb up 4 Thumb down 0
  • Jinyiwei22 on Oct 14, 2014 at 12:47 pm

    No wonder this stock counter Dxxxx share price on the rise.

    Like or Dislike: Thumb up 0 Thumb down 1
  • MrPoppyplants on Oct 14, 2014 at 1:02 pm

    My hopes?

    No hope.

    Like or Dislike: Thumb up 3 Thumb down 0
  • And meanwhile just in the other room, the AP holders continue opening champagnes…..

    Like or Dislike: Thumb up 7 Thumb down 0
  • Jimmy on Oct 14, 2014 at 1:47 pm

    To be excluded from subsidy:
    All passenger cars registered under company names.
    Diesel subsidy limited to real lorries and vans, not those Hiluxes double cabs.
    All vehicles above RM100k in their first 5 years of ownerships.
    Individuals with monthly income above RM10k, excluding spouse’s salary.
    Just to name a few groups.

    Like or Dislike: Thumb up 0 Thumb down 6
  • My Kangkung on Oct 14, 2014 at 1:51 pm

    Curi Curi Malaysia

    Like or Dislike: Thumb up 4 Thumb down 1
  • taxpayer#193874983 on Oct 14, 2014 at 1:55 pm

    Imagine you’re a tax payer and money used for nothing good. It feels sick when you know how they do with your hard earn money to fund their own. it’s even sicker to get a better car at $$$$$ price.

    It’s true I rather they remove all subsidies sickness and let everyone share the same. I wouldnt mind if i dont need to pay tax. Seeing and knowing the truth is sick and makes you dislike them. Seeing them implementing and talking rubbish is more sick.

    Like or Dislike: Thumb up 7 Thumb down 1
  • kemosabe on Oct 14, 2014 at 1:56 pm

    Don’t you guys here think that the word “Subsidy” is being used to cloud the minds of the citizens.
    The Gov doesn’t pay petrol companies the “Subsidy” for every litre of petrol you pump. Its just taxes not collected from the petrol companies, which comes from all petrol users.
    The term “Subsidy” is used to trick us into thinking that the consumers are burdening the country.
    The Gov is not paying for subsidies, it just making that less off the consumers.
    Rationalise in your mind the subsidy scheme you think the gov is doing for you. Its all about the gov doing business with the citizens.

    Like or Dislike: Thumb up 18 Thumb down 1
    • Yes it true coz current govt not transparent enough to publish actual price RON95 & RON97… the link below show how idiot & stupid our minister.. based on what method sales Tax Govt claim.. above RON95 & RON97 carry same sale tax at RM0.58 even though has diff sales price. It can’t be or RON95 carry higher sale tax % than RON97?.. This is old link just to show our Govt is TRUE LIAR….

      http://www.mai.org.my/ver1/index.php?option=com_content&view=article&id=2282:govt-explains-why-ron95-still-cheaper-than-ron97&catid=3:newsflash&Itemid=161

      Like or Dislike: Thumb up 2 Thumb down 0
  • smokey on Oct 14, 2014 at 2:46 pm

    would really lament the new policy if it is implemented based on income…
    what for work so hard then? more stress in work yet the gov suck more hard earned money from us

    Like or Dislike: Thumb up 2 Thumb down 0
  • Diesel Power!!! on Oct 14, 2014 at 3:33 pm

    Just abolish the subsidy!!! Now gment only subsidized 27sen, (paultan, plz change ur photo, it was outdated,coz our current price is rm2.30 per liter.)

    I rather pay full amount than this all bullshit…give us Euro5 diesel!!!

    Like or Dislike: Thumb up 8 Thumb down 0
  • lemonguy on Oct 14, 2014 at 6:00 pm

    Really subsidised? Before we really get our new car, it’s already tax with huge amount…ding dong ding dong then the car prices almost double.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Semi-Value (Member) on Oct 14, 2014 at 6:14 pm

    what plan? tok kok?

    Like or Dislike: Thumb up 4 Thumb down 0
  • nfnounfs on Oct 14, 2014 at 7:21 pm

    can the subsidy for fuel for the YBs and ministers are cut down or be eliminate? they never understand rakyat as they never had to pay for their fuel. fuel price will continue to increase until there no longer subsidy for it. the reason is to make the economy better and smoothly says Najib.

    Like or Dislike: Thumb up 2 Thumb down 0
  • old dog on Oct 14, 2014 at 9:55 pm

    whatever F they do, the sure F rakyat’s wallet to theirs…

    Like or Dislike: Thumb up 2 Thumb down 0
  • Cyclist on Oct 15, 2014 at 5:12 pm

    Bring it on baby…
    It’s just another 27cents till no subsidy. That’s only 15% more but our cars will cost bout 50% less….
    Now that’s a bargain!!!….

    Yeah you’ll say everything else will increase in price.

    So what….

    They didn’t raise the petrol price by 20cents. They merely reduce the Gomen’s burden as per a speech by our dearly beloved PM.

    However, as they are trying their best to reduce our Gomen’s burden. They themselves are getting a nice pay rise and allowance increase.

    Don’t you just love our leaders.

    They are surely the best.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Bslee on Oct 16, 2014 at 7:33 am

    I believe 3 tiers systems are the best.
    1. Subsidized petrol or diesel for taxis drivers, fishermen and lorries up to RM250.
    2. Partial subsidies of Ron 95 to BRim holders.eg. Lower price for up to RM 100 per month..these can easily implemented via petrol card
    3. The rest of MY card holders can purchase Ron 95 at pump price, to cut out foreign cars owners.

    Like or Dislike: Thumb up 0 Thumb down 1
  • Evilone on Oct 24, 2014 at 10:39 am

    Higher income with less subsidy is a stupiest idea i ever heard! High income paid high income tax! Less subsidy high income tax = government want rakyat to be lazy… high income person contribute to Malaysia economy… So you make high income ppl no choice to pay and pay and pay! And may we know how high income is consider high income ppl? 5 figure salary? after TAX left only how much? So to be more fair base on car… everybody can have a choice to choose the cc of the car. the CC of the car is the best way to determine the subsidy! you want big cc car or turbo then they need to fork up more on petrol

    Like or Dislike: Thumb up 0 Thumb down 0
 

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