UPDATE: The government has denied plans to limit fuel subsidies (click link for more info) to those earning less than RM5,000 a month owning cars with engine displacements below 2,000cc.
A Sin Chew Daily exclusive has revealed some details on the new system for the sale of subsidised diesel and petrol to eligible motorists that’s set to begin in September for commercial vehicles and October or November for private vehicles.
Citing Domestic Trade and Consumer Affairs ministry (KPDNKK) sources, the report indicates that under the new system, motorists with a monthly income of RM5,000 and below – and having cars with engines displacing under 2.0 litres – will qualify for the full fuel subsidy allowance.
Those with a monthly income of RM5,000-10,000 will be entitled to 300 litres’ worth of petrol and diesel subsidies, and those with monthly incomes of over RM10,000 may not be able to enjoy any fuel subsidies at all. Also, foreign motorists and foreign cars will no longer be entitled to buy subsidised fuel.
The source told Sin Chew Daily that the government is considering whether to upgrade the MyKad to include information on the bearer’s eligibility to purchase subsidised fuel, or issue a special fuel card.
Motorists will likely have to register with JPJ and provide relevant details, such as personal or corporate tax information, to collect this fuel card.
According to the source, the card will contain information such as the bearer’s name, address and monthly fuel quota. It will need to be swiped at petrol stations before filling up.
If a motorist has exceeded his/her fuel allowance for the month, he/she will have to purchase the (additional) fuel at market price, the source said, adding that the cards will also help the government trace motorists’ fuel spending.
However, all this has yet to be finalised, and KPDNKK is still exploring recommendations from relevant industries, the report states.
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AI-generated Summary ✨
Many comments express skepticism about the proposed system, highlighting potential loopholes and the risk of abuse, such as using family members' ICs or managing multiple cars to exploit subsidies. Several point out that the policy may unfairly penalize honest middle-class taxpayers and elderly owners of older, larger-engined cars, while others suggest that the system's complexity could lead to corruption and fraud. Some commenters argue that abolishing fuel subsidies altogether and lowering taxes on vehicles would be a more effective solution. There is also criticism about the implementation costs and privacy concerns related to tracking individuals' income and vehicle ownership. Overall, sentiments are largely negative, with many viewing the proposal as impractical, ineffective, and prone to exploitation, reflecting frustration with government policies and systemic issues.